EDB Business Partner and Telenor have chosen IBM as partner for their forthcoming technology consolidation. EDB and Telenor have at the same time entered into agreements to concentrate a larger proportion of their technology purchasing from IBM. EDB and Telenor have committed to buy hardware, software and services from IBM totalling NOK 1.7 billion and NOK 300 million respectively over the next five years.
“These technology agreements form basis for significant cost savings by both EDB and Telenor. Total purchases of NOK 1.7 billion over five years is in line with EDB’s current purchasing, but means that we will place a larger proportion of our total IT spending with IBM. These agreements will help to strengthen our competitiveness in the Nordic market. By ensuring that we have access to the latest and best technology, we are strengthening the foundation for our continuing growth combined with strong profitability”, explains Endre Rangnes, CEO of EDB.
“Telenor looks forward to this collaboration with IBM, and believes that it will produce valuable efficiency gains for both Telenor and EDB”, comments Jon Fredrik Baksaas, CEO of Telenor. “Lower costs, new IT platforms and collaboration on technology and R&D as well as marketing collaboration in the Nordic countries, will above all benefit all our customers in the form of new and forward-looking solutions at competitive prices”, adds Baksaas.
“This represents an entirely new collaboration for IBM, EDB and Telenor, and we are very much looking forward to working together. We are entering into a partnership of great strategic value for all three companies. It is clearly very promising that this new collaboration is being launched with a major infrastructure project – a project which is one of the most demanding seen in Europe in the area of server consolidation”, comments Jens-Much Hansen, Managing Director of IBM Nordic. He also points out the promising opportunities that will be opened up by collaboration on research and development and working together in the Nordic and Baltic markets.
The main features of the agreements on technological collaboration between EDB, Telenor and IBM are as follows:
EDB and Telenor have selected IBM as partner for their intended technological consolidation, with a potential scope of up to 6,300 servers at EDB and almost 1,700 at Telenor. EDB and Telenor will evaluate the individual elements of this program on the basis of case-by-case profitability. In addition the consolidation will include establishing a new IT architecture, renewal of up to 15,000 PCs and improving software effectiveness. This agreement is expected to create considerable cost savings for both EDB and Telenor.
EDB and Telenor have agreed to purchase hardware, software and services from IBM totalling approximately NOK 2 billion over 5 years, of which EDB will account for NOK 1.7 billion and Telenor will account for NOK 300 million.
The agreement ensures that EDB will have access to the best and most efficient technology that IBM can offer, including resources for research and development. This will reinforce EDB’s capability to develop new, more efficient and competitive solutions for the Nordic market.
Telenor and IBM will collaborate on developing joint products, and will work together on the marketing and sales of these solutions in the Nordic and Baltic region. This will strengthen and expand Telenor’s product offer to Nordic customers, and will generate significant income for Telenor. For IBM this collaboration will ensure that the company can offer proven and unified IT solutions to the Nordic market segment in an effective manner. The agreement represents comprehensive collaboration between Telenor and IBM on research and development.
IBM and EDB will collaborate on marketing and distribution of EDB’s applications and solutions for banks and financial solutions in the European market. In addition EDB will operate as a distributor for IBM’s infrastructure services for the Norwegian public sector.
The agreements will strengthen competitiveness
EDB will achieve significant cost savings by concentrating its spending on hardware, soft-ware and services to IBM. Cost savings in this area are central to the profitability of the major contracts EDB has recently won, and also mean that EDB will be in an even stronger position to compete for large new Nordic outsourcing contracts
For Telenor, the collaboration agreements represent a continuation of its Delta 4 program to improve efficiency and reduce costs. Server consolidation will create significant efficiency gains, and the new IT architecture will give Telenor a sound foundation for further growth and for developing new services. Telenor also believes that marketing collaboration with IBM will offer great potential in the Nordic and Baltic region to the benefit of both the companies and their customers.
For IBM, the planned technology consolidation is one of the largest consolidation projects ever carried out, and is evidence of the company’s strong position in this area. The servers will be based on IBM’s most advanced technology using efficient solutions for maximum performance. The migration process will be implemented in a sequential and reliable manner as a series of subprojects. IBM has demonstrated international experience with major projects of a similar scale and complexity.