Telkom plans to leverage its extensive investment is data centre operations to become a major player in the hosting and business process outsourcing markets.

"In Europe, data services demand is six times higher than the supply," the operator says in a statement. "In South Africa, the IT services market was R21-billion in 2007 and was forecast to grow by BMI-TechKnowledge at a compound annual growth rate of 10%.
"Telkom can rely on a number of key differentiating factors related to data centre operations. We are already a major player in the connectivity and managed network space and currently have 7 500 square metres of data centre space. We are currently managing over R2,5-billion of IT assets and are currently completing the addition of a further 2 200 square metres at a cost of R400-million which will be operational by July 2009.
"This fact confirms Telkom as the largest provider of data centre services in terms of square metres in high quality, high availability space in Sub-Saharan Africa," according to the statement.
Telkom is also conducting market research to assess the feasibility of adding a further 5 000 square metres, with the intention of building carrier-neutral data centres.
The operator is to design and provide the underlying infrastructure for both the Confederation Cup 2009 and World Cup 2010. and will also provide FIFA's data centre hosting requirements and fully managed customised IT solutions.
"To date, Telkom has successfully beamed the Confederation Cup 2009 to billions of people across the globe," it states.
"In the future, it is envisaged that Telkom will be able to redeploy a substantial portion of the infrastructure provided at the stadiums throughout the network, apart from the access equipment. In addition, the expansion in core network will be utilised for South Africa`s growing bandwidth demand."
Telkom CEO Reuben September adds: "Telkom is also actively moving up the value-added IT services chain. We are intrinsically IT intensive and have a large IT asset base. This is driving our strategic move into the IT services arena.
"Telkom is perfectly positioned to deliver a true converged services value proposition and we are following the lead of global players such as Deutsche Telekom and British Telecom who already hold third and fifth positions, respectively, in the European IT outsourcing market."