Redback, IBM extend relationship

Redback Networks today said it is extending a contract under which IBM manages its core business applications and IT infrastructure, using its Applications on Demand services. The relationship between the two companies has enabled Redback to manage dramatic growth in its product line sales, the company said.

“We have been working together for four years, and during that time, we have gone through a transformation of the business model on the operations side of Redback,” said Ebrahim Abbasi, Redback senior vice president of operations, information technology and customer service. “Our focus is on our technology and product leadership. IBM has been part of the success, and basically, we have a great working relationship. We use them to the greatest extent possible. When it comes to IT operations, if IBM can do it for us, then that is what we do.”

Redback is, in fact, extending and expanding the partnership, Abbasi said. Initially, Redback used IBM for Siebold and Oracle applications, but that is expanding.

“The question has been, in order for us to scale, in order for us to grow at the rate we are growing, which is 75% year over year, 2005 to 2006, should we in-source in terms of IT and business applications development or should we select a world-class partner that can enable us to scale in a more cost-effective way,” he said.

One benefit to Redback is “predictable pricing” for its IT operations, said George Kadifa, general manager, Applications On Demand, IBM.

“We are building on the core – an on-demand approach to managing these applications,” he said. “In Redback’s case, we have specific components which go beyond the basics. We provide options for Redback so that if they want to use special services, they get predictable pricing and predictable offering. They can pick and choose. It is an almost inflation-free approach.”