British American Tobacco has closed a $209 million deal with Deutsche Telekom’s IT subsidiary T-Systems. The seven-year contract focused on cloud computing offerings represents one of the largest cloud deals in T-Systems’ history.
Over a two-year period, British American Tobacco and T-Systems will transition the business software into the cloud so that SAP services will mirror British American Tobacco’s cyclical demands and will couple cost to real usage.
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British American Tobacco, which owns 45 cigarette factories worldwide and employs approximately 60,000 people to deliver its products to 180 markets, uses SAP systems to operate its businesses around the world. The company is making a significant investment in a consolidation program that will culminate in a single instance of SAP operating in 65 global markets by 2016.
As part of the deal, T-Systems will consolidate ten international British American Tobacco data centers into three global data centers in Europe, Asia and South America.
According to British American Tobacco CIO Phil Colman, the company’s IT strategy focuses on a single portfolio of connected applications running on standardized contemporary technology to drive competitive advantage across the business.
