IBM Wins $500 Million Nestle Deal


In a deal that squeezed out Hewlett-Packard, IBM has won a $500 million, five-year contract to provide Swiss food and beverage company Nestle with servers, storage systems and database software for the Nestle's data centers and to consolidate its mySAP.com software implementation.

HP currently provides Nestle with various products and services, however IBM was awarded the contract to build the technology e-infrastructure for Nestle's data centers, which will include IBM pSeries Unix servers and xSeries Intel servers, enterprise storage servers, SANs, DB2 and Tivoli software.

Nestle's "Globe" project is aimed at worldwide consolidation of its business processes, which will allow the $50 billion company to see a return on investment of $1.8 billion by 2006, according to IBM.

IBM executives were not available for comment, however an IBM spokesperson says the contract is not an outsourcing deal.

"Most of the agreement is for hardware and software," the spokesperson says.

Nestle is one of the largest mySAP.com customers and is implementing the business software, and consolidating its IT operations, in more than 100 sites worldwide.

Nestle employees will then be able to access mySAP.com via the company's portal that will be customized according to the employee's job functions.

Nestle's business partners and customers will also be able to access the company in this manner.