Brisbane tech companies cosy up with strategic partnership
29 May 2020, Written by Business News Australia
Brisbane-based tech companies Over The Wire (ASX: OTW) and NEXTDC (ASX: NXT) have made things official today as they enter into a strategic partnership.
Under the partnership OTW, a telecommunications and IT solutions provider, will migrate core elements of its network and private cloud infrastructure to NEXTDC's data centre facilities.
According to OTW managing director and co-founder Michael Omeros (pictured) the strategic partnership is the crystallisation of its relationship with NEXTDC.
"The NEXTDC partnership has been formed from a long-term successful relationship and we are proud to work more closely with such a capable and forward-thinking team," says Omeros.
"NEXTDC forms an integral part of our multi-cloud strategy and we are excited to be on the journey with NEXTDC, as they continue to build out next generation data centres that are enabling the growth of the digital economy."
NEXTDC CEO and managing director Craig Scroggie says the deal will also allow NEXTDC to leverage the networking capabilities of OTW to continue to build out its portfolio of data centres.
"Partnering with organisations with domain expertise in networking and cloud deepens the broad services portfolio our customers can access through our ecosystem," says Scroggie.
"Over the Wire has proven to be an extremely capable organisation and we are pleased to make further strategic investments in our partnership."
Demand for OTW services increases during COVID-19
In addition to the NEXTDC partnership announcement, OTW has provided a business update to the ASX today detailing how the company is managing during the COVID-19 crisis.
OTW says it has seen strong demand for its collaboration technologies and voice offering services during the pandemic due to social distancing requirements.
The increase in volumes has positively offset delayed delivery of some data services that has resulted from customer site access restrictions during the pandemic period.
OTW says broadly speaking it is in-line with its expectations for its recurring business, and it continues to generate positive operational cashflow and a strong balance sheet.
COVID-19 has impacted OTW's non-recurring business, but recent orders from customers indicates the company is likely to deliver more than 70 per cent of its non-recurring revenue forecast.
Business News Australia
Author: Business News Australia