Feeds

Worldcom screws down EDS bill

But to start paying again

  • alert
  • submit to reddit

Internet Security Threat Report 2014

EDS has cut its annual outsourcing charges to Worldcom by a whopping $83m a year. In return the bankrupt telco will resume payments to EDS, worth an estimated $600m a year over three years.

Under the previous contract, Worldcom was obliged to buy in a minimum amount of services from EDS. It still had to pay up if it did not use those services. According to Reuters, the cumulative minimum payment owing to EDS was "$5 billion, of which WorldCom has paid about $1.8 billion".

Worldcom had to get approval from the bankruptcy court for the deal, which will see it hand over an initial payment of $98.6m. EDS meanwhile sees a major weight lifted off its shoulders, even if all the fat has been cut from the contract. ®

Related stories

EDS rejects WorldCom accounting allegations
EDS-Worldcom deal highlights outsourcing risks

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.