DaimlerChrysler signs outsourcing deal with EDS

DaimlerChrysler AG has signed a multiyear IT outsourcing agreement with Electronic Data Systems Corp. Financial terms of the deal, announced Wednesday, weren't disclosed.

Under the pact, EDS will manage the migration of servers -- which include IBM's AIX servers as well as multiple Sun Microsystems Inc. servers and Microsoft Windows NT servers -- and services to a consolidated managed services environment for DaimlerChrysler's Michigan facilities. EDS will oversee management of the automaker's hardware operations and server-based software.

"We're going to take their existing server environment, and we're going to consolidate and manage that specifically for DaimlerChrysler's Michigan hosting environment," said EDS spokesman Terry Balluck. "EDS will manage all the migration of servers and any related services that are required to do that."

Balluck said the deal doesn't affect any DaimlerChrysler employees. The consolidation work is expected to begin immediately and will be phased in during the next 18 months, he said.

"For us, it allows us to take advantage of their expertise to handle these operations that are not core to DaimlerChrysler as an automotive manufacturer," said Daimler spokesman Ed Saenz.

Although Balluck said EDS will consolidate applications and information onto servers from its partners, EMC Corp., Sun and Dell Inc., Saenz said there is nothing inherent in the agreement that mandated a change from its current server environment.

However, Saenz said EDS could recommend such a change.

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