BT and HP announce global technology alliance

BT and HP have announced plans to develop a global IT alliance.

The companies have signed agreements with a combined value of $1.5bn (€1.2bn) over the next seven years.

HP will manage BT's midrange and desktop information technology (IT) infrastructure in the UK, and BT will manage HP's voice and data network and product support call centres within Europe, the Middle East and Africa.

"Connections matter more than ever today, and in a world where business and technology are inextricably linked, bringing together IT and communications into one seamless environment creates a solid foundation for growth," said Carly Fiorina, HP chairman and chief executive officer.

Ben Verwaayen, BT chief executive officer, commented, "This is a great opportunity for BT that delivers key components of our information and communications technology (ICT) strategy. In a consolidating industry, we believe it makes sense to create a strong alliance between a world-class communications company and a global IT company."

Starting this summer, the companies plan initially to address targeted European enterprises, plus the UK mid-market, consumer and small- and medium-size business (SMB) markets through a combination of service offerings.

Subsequently, other markets will be added as conditions and opportunities develop.

The companies are evaluating the development of world-class propositions in segments such as ICT infrastructure, application management, mobility, workplace solutions and contact centre services.

The approach will include the creation of a common service delivery model that is designed to improve the technical alignment across both companies in order to deliver, both together and separately, seamless ICT services.

In the UK, BT serves more than 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other operators.

The announcement comes only days after industry regulator Ofcom said a break-up of BT was one of the options it was considering as part of a strategic review of the sector.