Telstra and Microsoft expand partnership with new 5-year agreement

Telstra and Microsoft have expanded their ongoing partnership with a five-year agreement to combine the tech giant’s solutions with the telco’s network reach.

Under the agreement, Microsoft will become an anchor tenant on Telstra’s ultra-fast intercity fibre network, while Telstra will launch a dedicated end-to-end Microsoft practice.

The practice, which will be based in the telco’s managed services and technology consulting business Telstra Purple, plans to utilise Azure, Microsoft 365 and Microsoft Teams to build new solutions focused on hybrid working and cloud migration, initially targeting the manufacturing, retail, agriculture, utilities and finance industries.

Microsoft is also set to explore boosting its capacity on Telstra’s Asia Pacific subsea cable network, while both companies are expected to increase collaboration with each other on hybrid work and development of environmental, social and governance (ESG) initiatives.

Current Telstra CEO Andy Penn said the agreement aligns with the telco’s T25 strategy, claiming it will “turbocharge” how it delivers digital experiences.

“The pervasiveness of technology in businesses today and its ability to transform their operations, improve productivity, reduce their environmental impact and meet evolving customer needs means there’s no one-size-fits all solution,” he said.

“Beyond our network, one of our biggest differentiators is our 2,000-strong Telstra Purple team of technology experts who partner with businesses to design, deliver and manage solutions across cloud, cyber security, software development, data and AI and workplace technologies. 

“Our strategic partnership with Microsoft is on a scale not seen before in Australia, and it will be Australian businesses who will benefit at a time when the urgency to digitise and transform their operations has never been greater.”

Over the coming months, both Microsoft and Telstra will collaborate to finalise the scope of the expanded partnership.

Both companies previously expanded their partnership in 2020, which saw Azure provide the digital foundations for Telstra’s plan to streamline and simplify its operations, transitioning from legacy and on-premises applications to cloud-based solutions.