The agreement represents the second phase of a groundbreaking global outsourcing agreement negotiated a year ago by SBS and AT&T to transform Siemens’ global communications network to a state-of-the-art Internet Protocol (IP) network. The first phase of the contract, also for six years, was valued at Euro 250 million, and covered parts of Europe, Asia, Africa and South America.
By terms of the new agreement, AT&T Solutions, the company’s networking professional services arm, will transform the IT infrastructure supporting nearly 500 sites at 18 Siemens operating companies in North America. AT&T Solutions will provide a full range of managed networking services, wide area networking management, and data and voice transport services. This enables SBS to offer its clients the full benefits of AT&T’s advanced networking capabilities.
Partnering with AT&T vastly accelerates Siemens’ ability to deploy communications and networking solutions, and significantly increases our e-business marketplace opportunities, said Dr. Friedrich Fröschl, President and CEO of SBS. The success of our initial venture with AT&T and a second outsourcing partner in Europe (Deutsche Telekom) made it clear that an expanded scope will yield even greater benefits and cost advantages for Siemens and its customers.
When an existing outsourcing client expands the scope of the deal, it’s proof that we’ve fulfilled our promise to provide value through networking, said Dave Dorman, President of AT&T. Given Siemens’ own tremendous depth of IT and networking expertise, this is a tremendous tribute to the capabilities of AT&T.
The strength of the Siemens brand across Europe opens the door to significant joint marketing opportunities for AT&T on the continent. Similarly, our strength in the U.S. opens a corresponding number of doors for Siemens in America.
Parts of the global Siemens Communications Network already have been outsourced to AT&T, enhancing the performance and quality of service of Siemens’ Data Communication Network, reducing the need for capital investment, cutting operating costs by pooling carrier purchases across the globe and expanding e-business capabilities.
SBS retains overall responsibility for network service and the customer interface to Siemens companies and its external customers. SBS also will continue provisioning value-added and consulting services on top of the network platform and network security services.
SOURCE: COMPANY PRESS RELEASE
