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BT looks to sign �1.5b deal with HP
Andrew Wooden May 12 2008, 10:53am
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Telecommunications firm to sell assets to HP, strengthening the already close partnership
BT is in talks with computing giant HP to sell its 24 British data centres for a £1.5 billion sum.
The deal, which is expected to be signed in the next few weeks, comes ahead of BT’s preliminary results on Thursday, and will strengthen the already strong ties between the two firms thanks to a four-year old alliance.
The 24 data centres store reams of information for corporate customers, and BT admitted that HP was better equipped to deal with the increasing demand being placed upon them.
BT intends to improve the profitability of its global services division with the huge contract, as it focuses the division on simplifying corporate networks
The telecommunications firm will transfer 400 staff over to HP, and will take over the management of its voice and data networks globally. Insiders denied claims that the move was evidence that the two firms are inching towards a corporate merger.
It will however help maintain the partnership which has served the two firms well in the past through the acquisition of several key joint contracts.
Link: The Sunday Times
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Comments
“BT Selling out”
Posted by: Conor - May 12, 11:51am
Selling to HP means BT loose the direct connection with what should be its life support. This for me nmarks the begginning of the end of BT's ambitions wor world domination.
When BT bought Dabs after its own online site faired out miserabley, they ran its stock down to absolute minimum. BT will take your money for out of stock items - typically a sign of financal troubles. Selling the family silver sounds like the finincial troubles may be much worse than I had originally believed.