Telstra offloads cloud services unit to Infosys

• Telstra’s new five-year strategy is focused around providing the best connectivity services
• The Australian telco has also been revamping its B2B operations
• It is selling a 75% stake in its cloud services unit, Versent, to IT services partner Infosys in a deal valued at up to A$233m

As part of its new strategic focus on connectivity and its core competencies as a telco, Australia’s Telstra has struck a deal to sell a 75% stake in its cloud services business, Versent, to Indian IT services giant Infosys in a deal valued at up to A$233m (US$152.5m). 

The move is a reflection of the Australian operator’s new five-year strategy, dubbed Connected Future 30 (because it runs until mid-2030), which was announced in May this year and which is heavily focused on connectivity and supporting infrastructure – see AI influences Telstra’s new five-year strategy.

It also shows how the company’s focus has shifted in a relatively short time. Telstra acquired Versent for A$267.5m in late 2023 to help scale its enterprise technology services business, Telstra Purple. Then in March this year, Telstra Purple Cloud and Epicon, an IT management specialist acquired by Telstra in 2020, were rolled into Versent, which generated revenues of A$397m (US$259.4m) in the full financial year that ended on 30 June 2025.  

Now, although the deal is being presented as the creation of a joint venture (because Telstra is retaining a 25% stake in Versent), the telco is effectively selling its cloud unit to Infosys, which is already a key technology partner. 

Telstra noted that the deal is part of its “Connected Future 30 strategy to focus on core connectivity and consistent with the reset of its Enterprise business”. Telstra CEO Vicki Brady stated: “Versent Group has earned its reputation by helping Australian enterprises make the shift from traditional technology to modern cloud environments – delivering digital transformation at scale. Our partnership with Infosys reflects our confidence in the value we can unlock together. Their global scale, deep industry knowledge, and culture of innovation and service excellence will be instrumental in accelerating Versent Group’s growth and impact across the region. For customers, it means they can continue to benefit from Telstra’s leading connectivity and the local agility and specialised engineering of Versent Group, now enhanced by the global capabilities and market insights of Infosys.”

In its announcement about the deal, Infosys noted that Versent has a team of 650 engineers, advisors, strategists spread across Australia that will strengthen the Indian IT services giant’s presence in the country. “Versent Group primarily serves large blue-chip organizations with established presence in government and education, financial institutions, energy, and the utilities sector,” added Infosys. 

News of the deal came as Telstra announced its full year financial results. The company reported group revenues of A$23.6bn (US$15.4bn), up by 0.5% year on year, and earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$8.6bn (US$5.6bn), up by 4.6% on a like-for-like basis. 

Telstra ended June with 24.9 million mobile connections (including IoT), up by 3.2% from a year earlier, of which 8.88 million were postpaid mobile customers, down slightly (by 0.6%) from a year earlier. Its fixed broadband customer base (comprising consumer and small business users) dropped to 3.18 million from almost 3.3 million a year earlier.

The operator also reiterated its focus for the years ahead and hammered home its focus on connectivity. It noted that the telco sector has “an important role to play” in increasing national productivity in Australia. “To unlock opportunities from technology, we’ve got to have the right foundation of digital infrastructure. That goes beyond datacentres to connectivity, including the high capacity, low latency fibre and advanced mobile networks needed to support a tech-enabled, innovation-led economy. It is the critical foundation for how we will realise the opportunities we see for individuals, businesses and the country to be more prosperous and competitive. As part of that, we need the right policy and regulatory settings to make sure we can roll out largescale digital infrastructure projects more quickly and efficiently. Outlook and Connected Future 30 Trends indicate that demand for connectivity will only grow. Our core connectivity business is strong, with a unique set of competitive advantages that mean we are well placed to lead through this next period of technological change… Our ambition is to be the number one choice for connectivity in Australia, and to continue delivering on our purpose to build a connected future so that everyone can thrive.”

- Ray Le Maistre, Editorial Director, TelecomTV