V'fone Consolidates Data Centers

Vodafone says it will realize cost savings earlier than forecast from consolidation of European data centers

November 9, 2006

2 Min Read

NEWBURY, U.K. -- Vodafone has successfully completed the principal part of the integration of its European data centres into central hubs, deploying state-of-the-art technology. This initiative will deliver considerable cost efficiencies across the Group through the significant reduction of the total number of data centres.

Under the initiative, data centres from Vodafone's Northern European operating companies have been integrated into a hub based in Germany, while data centres from the Southern European companies have been centralised in Italy. The German data hub will also manage a third data centre in Ireland that will support the local operation.

This phased programme of migration will be completed when the UK finalises its data centre consolidation which is expected within the next 12-18 months.

By consolidating its data centres, Vodafone will benefit from improved economies of scale in purchasing IT equipment, reduced duplication and the more efficient use of servers. This will result in improved operational efficiencies and lower running costs in line with the Group strategy of reducing overheads through shared services.

As previously announced, the regional consolidation of Vodafone's IT operations is expected to deliver savings of 25 to 30 percent. However, Vodafone now expects to see these savings within two to three years, six months earlier than the three to five years previously predicted in May 2006. During the last financial year, the annual spend of the European IT operations combined opex and capex was approximately GBP 320million.

"Bringing together our European IT operations to create central hubs is an important part of our commitment to leverage the Group's global scale," said Steve Pusey, Chief Technology Officer for Vodafone Group. "The initiative is already realising significant benefits to the Group and the operation is delivering on its ambition to be best in class. Service levels are improving and by capitalising on the economies of scale we are able to reduce our costs."

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