British American Tobacco Goes Cloud With Deutsche Telekom

Deutsche Telekom’s IT subsidiary T-Systems has been awarded one of the largest cloud deals in the company’s history. The landmark seven-year contract is worth more than 160 million Euros.

As part of the deal, T-Systems will consolidate currently ten international British American Tobacco data centres into three global data centres in Europe, Asia and South America.

With more than 200 brands in its portfolio, British American Tobacco quality brands are sold in around 180 markets worldwide. It has 45 cigarette factories around the globe and employs over 60,000 people. As a result of this deal, British American Tobacco will buy much of its IT dynamically to increase flexibility at work and to reduce costs.

British American Tobacco uses SAP systems to operate its businesses around the world and is making a significant investment in a consolidation programme that will culminate in a single instance of SAP operating in 65 global markets by 2016.

Over a two-year period, British American Tobacco and T-Systems will transition the business software into the cloud so that SAP services will exactly mirror British American Tobacco’s cyclical demands and will couple cost to real usage. This will provide British American Tobacco with a competitive edge in a highly dynamic business.

Phil Colman, British American Tobacco’s CIO said: “British American Tobacco is the world’s most international tobacco group. It is successfully pursuing a consistent strategy that is building shareholder value. Our IT strategy focuses on a single portfolio of connected applications running on standardised contemporary technology to drive competitive advantage across the business. This agreement with T-Systems will help us to deliver that strategy.”

Reinhard Clemens, member of the Deutsche Telekom Board of Management and CEO of T-Systems said. “This mega-deal proves once again that our customers acknowledge our know-how in transitioning their traditional IT into the cloud and operating it in a save environment. And I am proud to say that we have developed our cloud skills long before dynamic services became the hype of our industry.”