Spark expands HPE partnership for IT transformation, cost savings

Spark New Zealand (NZX:SPK) has announced an expanded strategic partnership with Hewlett Packard Enterprise (HPE) to enhance its technology delivery model. The collaboration leverages HPE's GreenLake cloud to automate IT infrastructure and improve operational efficiency. Spark will transition to a variable IT infrastructure model, aligning with market demand and utilizing HPE's global services capabilities. Spark expects the partnership to reduce annualised IT costs and ensure its IT environments remain updated with the latest technologies, including automation and AI. Spark aims for an ~$80-$100 million reduction in net labour and opex costs in FY25, and annualised benefits of $110-$140 million by FY27. Spark will retain control over critical infrastructure, service delivery, and security policies. The partnership supports Spark's SPK-26 Operate Programme, focused on modernising technology and building an adaptive network.