The Reserve Bank of Australia (RBA) is actively seeking a migration partner to support its Core Modernization (CoreMod) Program. This initiative aims to upgrade the bank’s core infrastructure, ensuring greater reliability, scalability, and operational sustainability. Through a recent Request for Proposal (RFP), the RBA invites partners to help transition its legacy systems to a new colocation data center, reinforcing its critical mission systems.
CoreMod Program: An Overview of RBA’s IT Modernization Initiative
Unveiled at the close of 2023, the CoreMod Program is an ambitious overhaul of the RBA’s technology systems. The program’s primary goal is to mitigate the risks associated with aging infrastructure while improving resilience in key systems. The bank has already selected CDC Data Centres’ facility for its new data center, marking a significant step in its modernization efforts.
Data Center Selection and Contract Details
The RBA has secured a contract with CDC Data Centres to house its upgraded infrastructure at a new colocation facility. This contract, which runs through March 2034, underscores the importance of a reliable and scalable data center for supporting the RBA’s mission-critical operations. As part of the migration process, the selected partner will be responsible for ensuring seamless application, service, and system migrations to the new infrastructure.
RBA’s IT Modernization Tender: Migration Partner Requirements
The tender issued by the RBA outlines key requirements for the migration partner, emphasizing the need for expertise in transitioning core systems while ensuring minimal disruption. The successful partner must deliver detailed plans for migrating applications, services, and other critical systems while maintaining operational continuity.
The migration is expected to begin in June 2025, with completion slated for December 2026. The RBA aims to achieve long-term operational sustainability while addressing core infrastructure obsolescence and enhancing resilience.
Strategic Partnerships: NTT Australia’s Role in the Modernization
NTT Australia has been chosen by the RBA to design and implement its new IT infrastructure. This partnership will lay the groundwork for the bank’s system migration and modernization efforts. In addition to the core IT infrastructure contract, NTT Australia has secured multiple procurements, including AU$67.5 million in Cisco hardware and software deals and a AU$16.1 million agreement for F5 load balancers.
In May 2024, the RBA further extended its collaboration with Hitachi Vantara, awarding the company a contract valued at AU$13.6 million for managed services related to IT infrastructure.
RBA’s CoreMod Program: Key Milestones and Timeline
The entire CoreMod Program is scheduled to run through mid-to-late 2027. It includes various project streams such as data center upgrades, core modernization, application migration, and the decommissioning of outdated infrastructure. A critical aspect of this modernization plan stems from past incidents at the RBA’s head office data center, which highlighted the need for system improvements.
Past Incidents Highlight Need for Modernization
Several incidents in recent years have underscored the need for a more resilient and modern IT infrastructure. In August 2018, a power disruption at one of RBA’s data center sites caused a temporary shutdown, affecting essential systems like the Reserve Bank Information and Transfer System (RITS). A more recent issue in October 2022 resulted in a significant delay in payments due to a failed software update on a virtual server.
CDC Data Centres: A Trusted Partner in Data Center Infrastructure
CDC Data Centres operates multiple data center facilities across Australia and New Zealand, with locations in Melbourne, Canberra, and Sydney, as well as two in Auckland. CDC is expanding its footprint with a new campus in Sydney, set to open in late 2024. This strategic expansion supports the growing demand for high-quality colocation services.
FAQ Section:
1. What is the CoreMod Program?
The CoreMod Program is the Reserve Bank of Australia’s initiative to modernize its core IT systems and infrastructure. It focuses on improving the reliability, scalability, and resilience of mission-critical systems by migrating legacy infrastructure to a new data center.
2. Why is RBA modernizing its IT systems?
The RBA is modernizing its IT systems to mitigate risks posed by aging infrastructure, enhance system resilience, and ensure operational continuity. Past incidents, including power disruptions and software failures, highlighted the need for a more reliable infrastructure.
3. When is the CoreMod Program expected to be completed?
The entire CoreMod Program is scheduled to run until mid-to-late 2027, with key milestones such as the migration beginning in June 2025 and completion expected by December 2026.
4. What role does NTT Australia play in RBA’s modernization?
NTT Australia is responsible for the design and implementation of the RBA’s new IT infrastructure. They have secured several contracts to supply hardware, software, and managed services throughout the program.
5. What is the role of CDC Data Centres in RBA’s project?
CDC Data Centres provides the colocation facilities that will house the RBA’s upgraded IT infrastructure. The company’s data centers in Melbourne, Sydney, Canberra, and Auckland will support the bank’s operational needs.
