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IBM announces partnership with Steel and Tube

Today IBM announced a partnership with Steel and Tube...

Here are a few reasons why this is interesting... - Steel and Tube acquires IT infrastructure on an on demand basis. This allows Steel and Tube to “turn-on” extra computing capacity as and when required. - Steel and Tube has made number of recent strategic acquisitions; the partnership with IBM reduces the complexity of Steel and Tube's IT infrastructure. - By outsourcing non-core activities to IBM, Steel and Tube can focus on its core business.

Do let me know if you'd like to speak with Steel and Tube's IT Manager and / or Ken Tunnicliffe, Director, IBM Global Services.


Wellington, New Zealand, June 3rd, 2004, IBM Global Services today announced that Steel and Tube Holdings Ltd has reselected IBM to provide computing power on an on demand basis. IBM’s iSeries eServer on demand pricing model enables Steel and Tube to benefit from cost variability and capacity on demand rather than a traditional fixed-cost approach to IT infrastructure.

Steel and Tube Holdings Limited is New Zealand’s largest distributor of steel, wire and allied products with a total of 41 distribution and service centres servicing the construction, rural, and manufacturing sectors. It has 800 employees and annual sales in the vicinity of NZ$400 million, through various trading entities including: Steel and Tube Distribution, Steel and Tube Piping Systems, Steel and Tube Fastenings Systems, Steel and Tube Roofing Products, Steel and Tube Reinforcing and Hurricane Wire Products.

IBM e-business hosting addresses the challenge of aligning infrastructure to match rapidly changing organisational needs, whilst maintaining a predictability of cost. Under the terms of the agreement, IBM will provide a minimum baseline of processing power to Steel and Tube as is required from an iSeries hosted by IBM Global Services. As Steel and Tube’s need for additional computing power increases or decreases the IBM solution responds to their business needs.

IBM e-business hosting solution is of particular benefit to Steel and Tube as it has a requirement for extra incremental processing power at periodic times throughout the year relating to their financial reporting processes.

Steel and Tube’s Chief Financial Officer, Tony Candy, said, “We normally use a static level of IT capacity for day-to-day operations and only have the requirement for extra capacity on a month and year end basis. The conventional way to get this capacity would be to permanently purchase additional capacity, which would then be under-utilised. IBM’s innovative solution from IBM offers us the best of all possible worlds.”

IBM’s Director of Global Services, Ken Tunnicliffe, said that the partnership allows Steel and Tube to manage to spikes in demand and respond with flexibility to changing market conditions.

“By outsourcing its IT processing power to IBM, Steel and Tube can focus on its core business. IBM’s utility computing model allows Steel and Tube to “turn-on” extra computing capacity as and when it is required. By partnering with IBM e-business hosting services, Steel and Tube only pays for the IT processing power that it uses.”

By using a hosted solution, Steel and Tube does not have to manage the commercial complexity of the associated costs of maintenance and IT upgrades. IBM’s solution delivers a highly reliable and resilient IT environment which allows Steel and Tube to focus on its core business, not on its IT infrastructure.

About IBM Global Services IBM Global Services is the world's largest information technology services and consulting provider, generating record revenue and signings in 2003 of US$42.6 billion and US$55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value – from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit

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