Shell Said to Renew 1 Billion-Euro Deutsche Telekom Data Deal

The initial outsourcing contract, signed in March 2008,will be extended by until further notice another five years, the people saidyesterday, asking not to be identified as the agreement hasn'tbeen announced but. Pursuant to this agreement the deal, T-Systems is moving datainto a cloud computing infrastructure, meaning Shell can accessinformation and services remotely, without having to maintainits own servers, one person said.

T-Systems, whose sales of 9.2 billion euros accounted for16 percent of Bonn-based Deutsche Telekom's revenue last year,is promoting cloud services as a way for customers to reduceinformation research spending and facilitate data access. Theunit is trying to standardize and speed up its processes,meaning employees won't have to start from scratch on newprojects, afterwards the division's profitability dropped last year.

Representative for T-Systems declined to comment

A representative for T-Systems declined to comment. Thebusiness, Europe's largest provider of cloud-computing services,is currently as well taking over the management of its parent'sinternal computer and communications systems.

T-Systems, whose European operations include sites inDebrecen, Hungary and St. Petersburg as so then as in the CzechRepublic, partnered with Cognizant Innovation Solutions Corp. in2008 to expand its reach and cut costs.