German car giant Daimler-Benz has signed a deal with Deutsche Telekom with the supplier’s T-Systems arm  saying it ‘has once again persuaded Daimler of its IT expertise.’

The supplier which is Deutsche Telekom’s business customers arm will continue operating the automaker’s mainframes and key IT applications.

“The deal has a value into the hundreds of millions,” its said.

The contract to operate Daimler’s mainframes includes modernization of the hardware, which will entail deployment of the very latest mainframe technology.

The plan is to focus more on standard software in order to make the operation of IT applications in the production and distribution environments even more efficient. An added advantage for Daimler is the greater flexibility it will enjoy to access the IT services it needs on demand, the supplier said.

“Together with Daimler, we are the driving force behind the digitization of the automotive industry, modernizing the associated platforms and making them more flexible. We scored points with the high quality of service we have provided over many years,” says Reinhard Clemens, CEO of T-Systems and a member of the Deutsche Telekom Management Board.

The firm recently announced plans to build vans with delivery robots.

At the same time the deal will cover Damiler’s connected car programme. T-Systems connects over two million Daimler vehicles across the globe via Daimler’s proprietary connected car platform, and it will continue to operate the existing “Mercedes me connect” services for the next generation of vehicles as well. The services include live traffic information, safety functions such as emergency call, convenience services such as remote control, and infotainment apps like Internet radio and hotel/parking search functions.

The companies said they have joined forces to develop an upgrade solution for existing Mercedes-Benz vehicles, which will enable customers to connect to the digital world by retrofitting a Bluetooth adapter and downloading the corresponding app. The “Mercedes me” adapter has been on the market since spring this year.