HP and Alcatel-Lucent to Form Global Alliance

PALO ALTO, Calif. & PARIS--(BUSINESS WIRE)--HP (NYSE:HPQ) and Alcatel-Lucent (Euronext Paris:ALU) (NYSE:ALU) today announced they have signed a relationship agreement establishing both parties' intent to form a 10-year global alliance to help customers leverage the convergence of telecommunication and IT.

Once the definitive agreement has been executed, the companies will jointly market solutions and capabilities that enable end-to-end transformation for service providers and enterprises.

The companies plan to launch a global go-to-market program to transform communication networks into converged, next-generation infrastructures. As a result of this transformation, service providers will be able to efficiently deliver new, revenue-generating services. HP and Alcatel-Lucent also plan to offer services to manage the new and existing infrastructures for customers looking for flexible sourcing options.

HP and Alcatel-Lucent also plan to create a joint go-to-market initiative to provide communications solutions to mid- and large-size enterprises and public sector organizations. Alcatel-Lucent products in areas such as IP telephony, unified communications, mobility, security and contact centers will be integrated with HP IT solutions. These joint solutions are planned to be offered to enterprises through HP resellers or as managed services.

Furthermore, the alliance will create new end-to-end customer solutions that take advantage of both companies' product portfolios for the enterprise and telecom markets.

With a binding agreement, the go-to-market program will include all required investment and will be supported by dedicated business development and sales resources. Once implemented, the program could generate multi-billion euros in net revenues for HP and Alcatel-Lucent over a 10-year period.

The companies also plan for HP to transform and manage a large part of Alcatel-Lucent's IT infrastructure, taking advantage of HP technologies and experience in IT transformation. Alcatel-Lucent will be able to accelerate the evolution of its operations toward the highest standard of performance, quality, efficiency and costs. HP has been selected for its advanced data center technologies and its managed services leadership.

"We expect customers will be able to create new business opportunities and greater efficiencies from this alliance," said Mark Hurd, HP chairman and chief executive officer. "By combining our deep expertise in IT and communications, HP and Alcatel-Lucent will help customers transform their technology needs into a competitive edge."

"Today's global alliance represents a major transformational deal that will deliver great benefits to our customers. IT and telecom are coming together in an unprecedented way and I am delighted to see how we can speed up innovation in our industry," said Ben Verwaayen, Alcatel-Lucent chief executive officer. "I am also confident that HP will deliver Alcatel-Lucent best-in-class solutions in terms of performance and cost for our IT needs."

Joint market offerings

The world's service providers and enterprises are adapting to new consumer and business requirements, new competitors and changing business models. As telecom and IT converge, many businesses are beginning to modernize or outsource their infrastructures.

Through the alignment of their offerings and common solutions, HP and Alcatel-Lucent plan to create a "one-stop shop," relieving service providers of the burden and complexity of coordinating the transformation of IT and telecom infrastructures. Similarly, the companies plan to empower enterprises to effectively create and manage truly integrated communication environments.

For its next generation platform architecture, Alcatel-Lucent would take advantage of HP IT and telecom technologies as well as HP supply chain efficiencies. Alcatel-Lucent will be able to offer service providers sophisticated solutions that are based on common technologies for carrier-grade and IT applications. This approach will help service providers exploit the advantages of standards-based server, processor and operating system technologies.

HP managed services for Alcatel-Lucent

As part of the agreement, HP would be entrusted with a large part of Alcatel-Lucent's IT operations. By taking advantage of HP technologies and transformation expertise, Alcatel-Lucent plans to migrate more quickly to advanced IT infrastructure and services that deliver higher performance and greater efficiency. Throughout the 10-year agreement, Alcatel-Lucent targets significant aggregate savings along with material cash-flow improvements.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com.