HP Drives Home $2 Billion Enterprise Services Contract With GM

The multiyear contract means HP will continue to provide the automaker with applications, infrastructure services and support.

HP secured a major contract renewal as part of a $2 billion agreement with automaker General Motors, the companies announced Tuesday. Under terms of the agreement, HP (NYSE: HPQ) will manage GM's (NYSE: GM) technology infrastructure covering everything from network, workplace and mainframe management to applications and systems integration services for GM's global operations.

The new agreement builds on the computer giant's 25-year relationship with GM, the companies said, and HP said it covers a significant portion of work it's already doing for the automaker. The deal also renews GM's existing contract with HP one year early.

"GM's innovative business and in-vehicle technology strategy requires collaborative, cost-effective approaches so we can provide even better service to our customers as we design, build and sell the world's best cars and trucks," Terry Kline, GM's CIO and vice president of IT, said in a statement.

The scope of the deal includes HP providing GM with applications and infrastructure management services to support tens of thousands of desktop PCs and mobile devices as well as GM's manufacturing and supply chain operations.

HP said it will also be charged with providing an overall technology roadmap that supports GM's multiple suppliers and offer global service desk and support services in more than 50 countries and languages. The deal also covers all remote network management for data, network security and videoconferencing services.

Additional tools, technologies and resources will be provided by partners, including Microsoft and PricewaterhouseCoopers, through HP's Agility Alliance. The six-year-old Agility Alliance program, operated under HP's Enterprise Services division, brings in other major technology providers to help the company deliver on IT solutions.

David Needle is the West Coast bureau chief at InternetNews.com, the news service of Internet.com, the network for technology professionals.

TAGS: supply chain,IT services,GM,mainframe management,systems integration

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