Ericsson will extend its current service agreement with Compaq. The Swedish telco said the extension is in line with Ericsson’s efforts to reduce its IT costs.
The agreement, which runs over five years and has a total value of $200 million, is an extension of the current service agreement in Sweden between Ericsson and Compaq. The extension consists of more sites in Sweden as well as active asset management. The agreement will increase Ericsson’s flexibility regarding use of IT services and equipment.
The agreement also includes the sale of hardware to Compaq, like Unix servers, workstations, NT servers, desktop and notebook PCs. The sales transaction, worth $140 million, will be effective before year end.