August 1, 2004

Telco saves in software deal

TELSTRA has secured badly needed cost savings after striking a deal to upgrade its 40,000 employee personal computer network to the latest Microsoft software in a contract which is worth about $20 million.

The four-year deal ends an 18-month search for cheaper technology by Telstra, which is attempting to halve its $1.5 billion information technology budget by 2006.

The deal also marks a local milestone for the world's biggest software house, as it struggles against so-called "open source" software and stagnating global sales.



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