European Communications

Last update11:37:32 AM

T-Systems signs “mega deal” with BAT

Deutsche Telekom’s enterprise subsidiary T-Systems has signed a €160 million cloud deal with British American Tobacco.

The seven-year contract will see T-Systems help to transition BAT’s business software into the cloud and consolidate BAT’s 10 current data centres into three.

BAT is the world’s second largest publicly quoted tobacco group with 2011 revenues of €18.5 billion in 2011.

“Our IT strategy focuses on a single portfolio of connected applications running on standardised contemporary technology to drive competitive advantage across the business,” said BAT’s CIO Phil Colman.

“This agreement with T-Systems will help us to deliver that strategy.”

The news shows the increasing importance of T-Systems to DT.

Last year, the business unit was the only one at DT to register an increase in revenues – they rose 2.1 percent to €9.2 billion.

"This mega-deal proves once again that our customers acknowledge our know-how in transitioning their traditional IT into the cloud,” commented Reinhard Clemens, member of the DT board of management and CEO of T-Systems.

T-Systems was the only bright spot in an otherwise poor year for the Germany-based operator, which saw overall group revenues fall six percent to €58.6 billion.