RealTime IT News

On-Demand Arrives at Electrolux

IBM has signed on long-time client The Electrolux Group for a new outsourcing pact that also includes a significant portion of computing services served up "on-demand" for the maker of outdoor and indoor appliances.

Under terms of the seven-year contract, IBM is expected to help manage the Stockholm-based Electrolux's entire European desktop environment. The company said that would include support for IBM's collaboration application Lotus Notes, support for administration and helpdesk service.

Electrolux, perhaps best known for its popular vacuum cleaners, plans to use a variable pricing model as part of the on-demand contract, which means Electrolux will pay IBM a per user fee for each desktop that deploys the services from IBM. The companies said the user base is likely to fluctuate between 13,000 and 19,000 desktops.

IBM is expected to help introduce a more distributed computing architecture across Electrolux's PC environment in order to help introduce improved support for local area networks and networking among smaller workgroups. The companies said they would be using Tivoli as part of the enterprise management line of tools.

For its part, Electrolux's internal IT service provider, Electrolux IT Solutions, said it would manage the transition to the new IBM contract and keep track of the agreement going forward. As is customary in outsourcing contracts, Electrolux IT employees, in this case more than one hundred, along with some of the company's hardware assets will transfer to IBM.

No financial details of the contract, which starts in August, were released.