Image may be NSFW.
Clik here to view.
It does not make up for the loss of its 12-year contract with Rolls-Royce (see here), but HP has secured a new five-year deal which it won against what it describes as the ‘usual suspects’ - traditional IT services providers, plus the Indian suppliers.
As its largest commercial client in the UK, Rolls-Royce is vitally important to the UK HP business, especially as the services operation is one of several business units that is struggling (see HP Q3 – the picture says it all). The aerospace suppliers’ decision to move away from a single main IT supplier in favour of an ecosystem of best of breed providers managed by Capgemini earlier this year was a blow to HP but the new contract award will help take down the bruising.
Although HP is not revealing the size of the contract, we believe it is still a large deal even by HP’s standards. It covers application hosting from HP data centres in the UK, United States and Singapore, management of remote server and storage environments in Brazil, Canada, France, Germany and Norway, and data centre infrastructure management. Although Capgemini will provide services around ERP applications, HP still has an extensive footprint elsewhere, providing maintenance and support services around engineering, manufacturing, customer service and other back office and information management applications.
HP is doing more than keeping its foot in the door and the heavy level of embedding will be influential as it bids for additional project work. Its progress with Rolls-Royce may not be determined solely by how well it performs for the organisation but on how the HP business fares overall (see Meg paints a bleak picture of HP in 2013).
