Australian taxation office to replace IBM Mainframe in two years

The Australian taxation office will need to replace IMB Frame for the start of tax time in July 2024. The existing IBM z14 is nearly at the end of its economic life. Hence, ATO is giving itself two years to replace it.

On Wednesday, the national revenue agency detailed the need for a new framework and requested for tender. As part of its IT strategic source programing, it has put out many RFQs in recent weeks. Meanwhile, the tender replaces long-held contracts across centralized computing, enterprise management and end-user technology. It would be the biggest shakeup in its IT outsourcing in years.

DXC Technology – IBM Framework

Currently, DXC technology holds the Centralised computing covering the mainframe. It has contracted with ATO since December 2010 under a $2.1 billion contract. However, the contract will expire in June 2023. Therefore, ATO is looking for a new service provider to replace the previous mainframe. Its capacity requirements are cautiously growing.

According to tender documents, ‘’ capacity requirements and support costs have grown to a point that the ATO’s z14 Mainframe is reaching the end of its economic life.’’

Meanwhile, ATO says, ‘’ The ATO’s current IBM z14 mainframe is reaching the end of its economic life and requires replacement before tax time 2021,’’

ATO is considering two options

ATO focuses on consumption-based services and platform services. The first providers own and manage the frame hardware and meanwhile the second service is in a cloud-like delivery model. ATO said the service must be able to ‘’ meet fluctuating capacity requirements that increase significantly during tax time.’’ However, may decline over time as applications migrate off the mainframe.

ATO says “The ATO may award one, many or all separable portions to a single tenderer within, or across, options, noting the MFaaS service provider cannot be awarded the separable portions for control services and augmentation Services.’’

The tender bids until the end of June 2022, with a contract expected to begin in March 2023. Meanwhile, an industry briefing is a plan for April 27.

Bibi Zuhra
Bibi Zuhra
Bibi Zuhra has a Master's degree in public administration and a Certificate in Entrepreneurship from Santa Rosa Junior college (California). Bibi has worked in research & marketing, and in policymaking, and also has more than four years of experience as an SEO Content Writer, and news articles for e-commerce, tourism, business, education, and lifestyle. she believe words have the power to change the world, and she try to do that through her work.

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