HP and Nokia to extend global IT services agreement for up to five years

EDP Weekly's IT Monitor, Feb 9, 2004

HP (NYSE:HPQ) has announced that it has signed a Memorandum of Understanding with Nokia to renew and expand the companies' existing global information technology services relationship for up to five years.

Under the terms of the agreement, originally signed in September 2001, HP manages the IT infrastructure and operations for Nokia globally. The intended renewal of the agreement will extend the HP and Nokia collaboration in the IT infrastructure area up to eight years altogether.

The focus of the existing agreement has been on transforming Nokia's fixed IT environment into a flexible, scalable infrastructure while improving service performance and minimizing recurring fixed costs. During the first two years of the relationship, the agreement has delivered significant savings, even exceeding the original target set by Nokia. ...

Under the terms of the extended agreement, Nokia's IT environment will evolve to a service-based model. The model enables the IT environment to meet varying business needs as well as to enable billing based on actual IT service consumption and different support requirements by Nokia's businesses. The service-based model is a reflection of the HP Adaptive Enterprise strategy, in which IT and business are synchronized and companies are able to achieve greater business agility--the ability to respond to and capitalize on changes in market conditions or customer demands.

"Our collaboration with Nokia demonstrates the power of the HP Adaptive Enterprise vision, which enables better business effectiveness, reduced operational costs and the use of allocated IT resources according to the needs of different businesses," said Francesco Serafini, senior vice president and general manager, Europe, Middle East and Africa, HP Services.

"We are very pleased with the progress and cost savings that have been achieved during our collaboration with HP in the IT infrastructure services area," said Gordon Jack, vice president, Business Infrastructure, Nokia. "Now, by adopting HP's vision for the Adaptive Enterprise, we are looking for greater flexibility in terms of service levels and billing through the new service-based model."

The expanded agreement is expected to be signed during 2004.