BAT Goes Cloudy With T-Systems
British American Tobacco signs seven-year cloud services contract with Deutsche Telekom subsidiary
April 2, 2012
TROY, Mich. -- Deutsche Telekom's IT subsidiary T-Systems has been awarded one of the largest cloud deals in the company's history. The landmark seven-year contract is worth more than 160 million Euros. With more than 200 brands in its portfolio, British American Tobacco quality brands are sold in around 180 markets worldwide. It has 45 cigarette factories around the globe and employs over 60,000 people. As a result of this deal, British American Tobacco will buy much of its IT dynamically to increase flexibility at work and to reduce costs.
British American Tobacco uses SAP systems to operate its businesses around the world and is making a significant investment in a consolidation program that will culminate in a single instance of SAP operating in 65 global markets by 2016.
Over a two-year period, British American Tobacco and T-Systems will transition the business software into the cloud so that SAP services will exactly mirror British American Tobacco's cyclical demands and will couple cost to real usage. This will provide British American Tobacco with a competitive edge in a highly dynamic business.
Deutsche Telekom AG (NYSE: DT)
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