Fujitsu Awarded 6-Year IT Contract

News Source: Nelson Hall Industry Comment

Fujitsu has been awarded a 6-year IT infrastructure management contract by Norwegian aluminium company Norsk Hydro ASA. The contract, which has a one-year transition period, takes effect in September 2010 and includes IT systems in 40 countries.

Services to be provided by Fujitsu include management of the client's

• Desktops
• Server hosting
• LAN
• Storage 
• 24x7 multilingual service desks 
• Application hosting and collaboration systems.

Fujitsu will be responsible for an integrated and end-to-end service delivery that covers both on-site and remote services across Hydro's business areas.

Analyst comments:
Norsk Hydro is not extending its contract with EDB Business Partner: the contract, which runs to June 30, 2011 and represents annual revenues to EDB of NOK 150m ($23m). EDB acquired Hydro IS Partner, the captive organization of Statoil Hydro and Norsk Hydro for NOK 1.2bn in January 2008 following their marger in June 2007. EDB will continue provide services until June 2011 as planned.

This is clearly a major loss for EDB, who acquired Hydro IS Partner in order to increase its presence in industrial sectors (and indeed since the acquisition EDB has secured contracts with the likes of Astra Zeneca and Volvo).

Factors that helped Fujitsu win the deal will have included its broader global service delivery footprint.

EDB is currently in merger discussions with Ergo Group.