Deutsche Bank, Hewlett-Packard Sign Multibillion Dollar Agreement

   By Eyk Henning 
 

FRANKFURT--Deutsche Bank AG Tuesday said it has mandated Hewlett-Packard (HPQ) to help modernise its information technology systems in a ten-year, multi-billion dollar agreement which is expected to significantly cut costs.

"This agreement enables Deutsche Bank to secure standardised...IT infrastructure while lowering costs. Having a more modern and agile technology platform will...lay the foundation for the next phase of its digital strategy," Deutsche Bank's Chief Operating Officer Henry Ritchotte said in a statement.

The contract mainly covers wholesale banking IT infrastructure, and HP will provide dedicated data centre services on demand including storage, platform and hosting according to the bank. Deutsche Bank has for a long-time used a plethora of IT systems instead of investing into streamlining and optimizing them, executives have said privately.

The giant German lender is in the midst of a strategy review to improve profitability and its share price. Both have been lagging international rivals for more than a year.

"Deutsche Bank is taking a proactive approach to modernising its IT infrastructure... Through this partnership, Deutsche Bank will meet its long-term business objectives through a transformation of its IT infrastructure," Meg Whitman, chairman, president and chief executive of Hewlett-Packard, said.

Write to Eyk Henning at [e-mail]

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