HP to deliver $100m Helion migration for logistics firm TNT

Lorry driving down motorway

HP has signed a cloud migration deal worth an estimated $100m with delivery firm TNT, as it bids to revive its flagging Enterprise Services division.

The six-year contract will see TNT virtualise its IT, moving parts to HP’s Helion Managed Virtual Private Cloud, as the logistics business tries to simplify its infrastructure.

It represents a big win for HP, with analysts TechMarketView estimating the deal to be worth more than $100 million over the entire contract.

But analyst Kate Hanaghan added: “HP needed this win. Its Enterprise Services business has been under immense pressure."

The tech giant reported a weak quarter between November 2014 and January 2015, seeing its Enterprise Services group revenue decline 11 per cent year on year to $4.9 billion.

Working with TNT, HP will support the delivery firm’s aim to consolidate its IT estate from 11 data centres down to four, located in Singapore and the UK.

While it will host TNT applications in its private Helion environment, it’ll also provide Infrastructure-as-a-Service (IaaS) services.

Jacqui Ferguson, general manager for UK & Ireland’s HP Enterprise Services, said in a statement: “Transforming the provision of data centre services across the world will provide TNT with a solid foundation to support its growth strategy.”

TNT has also signed agreements with Infosys over an applications contract and with Verizon for network and communications provision, according to TechMarketView.

HP Helion’s latest contract win comes just three weeks after it bagged a multi-billion dollar migration deal with Deutsche Bank, giving HP some reason for hope ahead of its split into two companies by October.

Analyst Hanaghan said the contract wins will help HP build its reputation in Enterprise Services.

“The TNT and Deutsche Bank deals demonstrate that HP is convincing buyers of its ability to provide cloud-delivered services in parallel with a traditional environment, alongside managing the transition from the latter into the cloud,” she said. “The ability of suppliers to simultaneously support/deliver these ‘parallel universes’ (i.e. legacy and ‘new world’ technologies) is becoming absolutely essential.”