“RBA Prepares for CoreMod Transition”
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Quick Overview
- The Reserve Bank of Australia (RBA) is progressing with its CoreMod infrastructure enhancement program.
- This initiative involves the transition of core applications to a CDC Data Centres site by December 2026.
- NTT has been engaged for the design and execution of the infrastructure, secured by a $12.7 million contract.
- A $37 million colocation agreement with CDC Data Centres is set to last until March 2034.
- A new Governance Board will supervise the CoreMod project.
- This endeavor is geared towards reducing risks, updating IT systems, and boosting system resilience.
RBA’s CoreMod Migration: Advancing Resilience
The Reserve Bank of Australia (RBA) is embarking on a vital stage of its CoreMod infrastructure enhancement program, with objectives to shift core applications to a new data center by December 2026. This effort marks a crucial advancement in securing the durability and robustness of Australia’s financial framework.
Importance of CoreMod
The CoreMod initiative tackles the escalating challenges posed by outdated IT infrastructure. Through system upgrades, the RBA seeks to reinforce the resilience of its essential operations, ensuring seamless service for Australia’s financial community.
Crucial Partnerships Propelling CoreMod
CDC Data Centres Establishes Colocation Agreement
The RBA has selected CDC Data Centres to host its new primary data center as part of a $37 million colocation agreement that extends to March 2034. This site will underpin the RBA’s revamped IT ecosystem.
NTT’s Contribution to Infrastructure Development
In August, the RBA retained NTT to craft and execute the new IT infrastructure. This $12.7 million contract will extend through October 2025, focusing on creating state-of-the-art systems to facilitate the migration and ongoing operations.
Governance and Supervision
For the program’s success, the RBA is setting up a new Governance Board that will manage the CoreMod initiative and other significant projects, offering direction and ensuring alignment with the bank’s strategic vision.
Timeline and Future Actions
The transition of core applications is anticipated to take place from June 2025 to December 2026. In preparation, the RBA will concentrate on establishing the essential infrastructure and governance structures conducive to a seamless shift.
Stages of the CoreMod Project
- 2023-2025: Design and preliminary setup of infrastructure by NTT.
- Mid-2025: Migration phase initiates, moving applications to the CDC site.
- By December 2026: Finalization of the migration phase.
- 2034: Conclusion of the colocation contract with CDC Data Centres.
Conclusion
The CoreMod migration initiative by the Reserve Bank of Australia represents a crucial effort to modernize its IT framework for enhanced resilience and risk mitigation related to aging systems. With key collaborations in place, notably with CDC Data Centres and NTT, the RBA is poised to embark on a multi-year journey to secure its operations for the future. The success of this program will significantly impact the stability of Australia’s financial systems.
Q&A: Understanding CoreMod Migration
Q: What does the CoreMod program entail?
A:
The CoreMod program is the Reserve Bank of Australia’s initiative to modernize its IT infrastructure. It focuses on replacing outdated systems, mitigating risks, and bolstering the resilience of essential operations.
Q: Who are the primary partners involved in this initiative?
A:
CDC Data Centres is delivering colocation services through a $37 million agreement, while NTT is responsible for the design and execution of the new infrastructure for $12.7 million.
Q: What are the migration timelines?
A:
The migration phase is scheduled to occur from June 2025 to December 2026, with the complete project expected to conclude by 2034.
Q: What risks does the CoreMod program seek to address?
A:
The program seeks to tackle risks associated with legacy infrastructure, including obsolescence and vulnerability to interruptions, by modernizing systems and enhancing resilience.
Q: What is the function of the new Governance Board?
A:
The Governance Board will oversee the CoreMod program, ensuring accountability and alignment with the RBA’s long-range objectives.
Q: How much financial commitment is the RBA making for this initiative?
A:
The RBA has allocated $37 million for colocation services with CDC Data Centres and $12.7 million for NTT’s infrastructure design and execution, in addition to other undisclosed expenses.
