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By Mel Duvall
HP’s bolstered services organization has signed a major infrastructure services agreement with pharmaceutical giant Eli Lilly and Company.
The companies announced that under the seven-year pact, HP Enterprise Services will provide Eli Lilly with computing and messaging support across its global operations. Services will include hosted messaging for more than 45,000 mailboxes, as well as service desk and site support for more than 60,000 employee desktops, notebooks and handheld devices in 84 countries. Financial terms were not disclosed
In a statement announcing the deal, HP said it will offer Eli Lilly a number of new services to support its need to work in a secure collaborative manner with external partners. HP will provide external Web hosting services, manage the company’s Microsoft SharePoint environment, and provide identity and access management services to protect the collaborative systems.
“At Lilly, our goal is to discover and develop innovative new medicines that produce improved outcomes for individual patients,” said chief information officer Mike Heim. “This agreement with HP enables us to access cost-effective, market-based, global infrastructure services, allowing our internal resources to focus on value-added capabilities more directly aligned with our core business.”
The Elli Lilly deal is positive sign for HP as it looks to compete for a bigger slice of long-term contracts. HP made a huge bet a year ago when it plunked down nearly $14 billion to acquire Electronic Data Systems. In September it announced that the combined services organizations from the two companies would operate as HP Enterprise Services.
HP also signed a deal this month to extend an infrastructure and applications services agreement with European grocer Ahold. Under the seven-year extension, HP will provide management and support services for Ahold’s global data center environment, which includes mainframes, servers and storage. HP will also provide network services for Ahold’s supply chain network, which connects its 3,000 stores with warehouses and office locations across Europe.
In its fiscal fourth-quarter earnings report, announced Nov. 23, HP noted that while the hardware market continued to suffer from budget cutbacks, services revenues increased 8 percent in the quarter to $8.9 billion. Operating profit from services was $1.4 billion, or 16.2 percent of revenue, up from $945 million (11.4 percent of revenue) from the prior-year period.
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