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Cloud now top of Mac Tel’s list

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Macquarie Telecom is increasingly positioning itself as a cloud provider first, telco second, noting in its annual results released yesterday that it has an ongoing program to redeploying telco resources to support growth in its hosting business.

Announcing that its hosting revenue was more than $AU53 million yesterday on growth of 20 percent year-on-year, the junior telco also announced a drop of 9.3 percent in telco revenue.

Hosting now represents 24 percent of Macquarie’s overall revenue, the company said, and as Australia’s National Broadband Network (NBN) rolls out, it expects continuing growth in cloud opportunities.

While the hosting business’ profits fell by 4.2 percent compared to 2009-2010, this was due to its ongoing capex in the segment. That investment is to continue, with more than $AU47 million of the company’s $AU60 million budget for its under-construction Intellicenter 2 data centre scheduled for the 2012 financial year.

Macquarie Telecom attributed its falling voice revenue to intense price competition, and substitution of fixed services by both mobile and IP-based voice services. The company says cost control measures in the voice business will maintain profitability while it pursues growth in the cloud.

The fall in voice revenues, however, also drove a fall in overall revenue by 3.6 percent, which roughly matched the company’s 3.7 percent decline in share price yesterday following the results announcement. ®

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