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GM Awards $2 Billion To Hewlett-Packard For Technology Contract

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On: Thu, Jul 22, 2010 at 9:23AM | By: Sherry Christiansen

 GM Awards $2 Billion To Hewlett-Packard For Technology Contract

General Motors has approved a $2 billion contract with Hewlett Packard (HP), which will maintain the companies' partnership that was established over two decades ago. In a recent press release, HP spokesperson was quoted as saying that this agreement will extend the two companies' 25-year relationship.

According to HP, the company will "manage GM’s technology infrastructure with a focus on providing an enhanced and continuously improving world-class end-user experience." Translated, that means that HP will integrate its own technology into GM platforms, including OnStar.

“The automotive industry is in the midst of a transformation and GM’s technology infrastructure needs to be hitting on all cylinders to take full advantage of the potential market opportunities,” Tom Iannotti, HP senior vice president and general manager, said in a company release. “HP has a track record of outstanding service to GM that we will continue to deliver to help GM realize their business objectives.”

Not only does HP provide apps for GM’s auto technology in new vehicles, the company also provides data and financial management for GM.

The new agreement includes the extension of HP's present work with General Motors. It also provides a one year renewal for the two companies’ arrangement.

GM’s former ancillary technical support department was provided by a company called Electronic Data Services (EDS), which originated back in 1996 before it was eventually bought out by Hewlett Packard two years ago for over $13 billion.

A $2 billion contract was awarded to HP so the technology infrastructure would continue to be managed by Hewlett Packard Co. HP will manage GM’s network, workplace, mainframes, applications and systems integration services for global operations, including the OnStar. The infrastructure management services HP will provide include a global service desk and site support services in more than 50 countries and languages, and will support tens of thousands of desktop computers and mobile devices and business systems, including financial transactions and supply chain.

Two years ago GM closed its plant in Moraine, and the Dayton region has more than 20 GM dealerships. The new contract could have some direct effect on the Dayton region, as GM has a parts and service facility in West Chester that employs 100. Mark Hurd, Hewlett-Packard CEO, joined HP after serving in Dayton with NCR Corp. (NYSE: NCR), as its CEO.

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