HP and Alcatel-Lucent to form global alliance

Alcatel-Lucent to transfer around 1,000 employees to HP as part of the deal

HP and Alcatel-Lucent have announced they have signed a relationship agreement establishing both parties’ intent to form a 10 year global alliance to help customers leverage the convergence of telecommunication and IT.

Once the definitive agreement has been executed, the companies will jointly market solutions and capabilities that enable end to end transformation for service providers and enterprises.

The companies plan to launch a global go to market program to transform communication networks into converged, next generation infrastructures. As a result of this transformation, service providers will be able to efficiently deliver new, revenue generating services. HP and Alcatel-Lucent also plan to offer services to manage the new and existing infrastructures for customers looking for flexible sourcing options.

As part of the deal, Alcatel-Lucent will transfer around 1,000 Information Technology infrastructure employees to HP. This move will allow Alcatel-Lucent to get closer to its Euro750 million cost saving target by the end of the year.

HP and Alcatel-Lucent plan to create a joint go to market initiative to provide communications solutions to mid and large size enterprises and public sector organisations. Alcatel-Lucent products in areas such as IP telephony, unified communications, mobility, security and contact centres will be integrated with HP IT solutions. These joint solutions are planned to be offered to enterprises through HP resellers or as managed services.

Furthermore, the alliance will create new end to end customer solutions that take advantage of both companies’ product portfolios for the enterprise and telecom markets.

With a binding agreement, the program will include all required investment and will be supported by dedicated business development and sales resources. Once implemented, the program could generate multi-billion Euros in net revenues for HP and Alcatel-Lucent over a 10 year period.

The companies also plan for HP to transform and manage a large part of Alcatel-Lucent’s IT infrastructure, taking advantage of HP technologies and experience in IT transformation. Alcatel-Lucent will be able to accelerate the evolution of its operations toward the highest standard of performance, quality, efficiency and costs. HP has been selected for its advanced data center technologies and its managed services leadership.

Ben Verwaayen, CEO at Alcatel-Lucent, stated: “Today’s global alliance represents a major transformational deal that will deliver great benefits to our customers. IT and telecom are coming together in an unprecedented way and I am delighted to see how we can speed up innovation in our industry. I am also confident that HP will deliver Alcatel-Lucent best-in-class solutions in terms of performance and cost for our IT needs.”

For its next generation platform architecture, Alcatel-Lucent would take advantage of HP IT and telecom technologies as well as HP supply chain efficiencies. Alcatel-Lucent will be able to offer service providers sophisticated solutions that are based on common technologies for carrier grade and IT applications. This approach will help service providers exploit the advantages of standards-based server, processor and operating system technologies.

As part of the agreement, HP would be entrusted with a large part of Alcatel-Lucent’s IT operations. By taking advantage of HP technologies and transformation expertise, Alcatel-Lucent plans to migrate more quickly to advanced IT infrastructure and services that deliver higher performance and greater efficiency. Throughout the 10 year agreement, Alcatel-Lucent targets significant aggregate savings along with material cash flow improvements.