Feeds

HP tipped to take over BT's datacentres in £1.5bn deal

CEOs plan back-scratching calls this week?

Boost IT visibility and business value

HP is expected to take BT’s UK datacentres off its hands in a £1.5bn deal.

The arrangement will see BT offloading 400 staff and 24 data centres to the Silicon Valley giant in return for £1.5bn in cash, according to the Sunday Times. BT will continue to access the centres under a ten year deal. At the same time, the telcos current deal to manage HP’s voice and data networks in Europe will be extended worldwide.

The companies already have an outsourcing alliance, priced at $1.5bn when it was first announced back in 2004, which included worker swaps.

Now that that deal turned into a tighter, long-term alliance between HP and BT there will inevitably be speculation that the two companies are heading for a merger longer term. However, according to the Sunday Times, insiders are “playing down” the prospect.

The deal is still being thrashed out the report said, but should be finalised within weeks.

BT said it was unable to comment today, while HP said "If there are developments relating to the alliance between British Telecom and HP we will inform you through our usual channels."

Both companies are due to report their latest results this Thursday. BT’s results announcement will also be the last for CEO Ben Verwaayen, who has overseen BT’s drive into the services market.

So, the cynical might suggest Thursday would be a perfect day to announce a tie-up – HP’s Mark Hurd would get to trumpet a massive deal to shareholders, while Verwaayen leaves his shareholders with a big pile of HP's cash and make BT’s services arm look more profitable.

Of course, the firm's communications departments will argue this is simply a coincidence of corporate calendaring.®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.