Feb, 2002 : 7-Eleven Awards EDS $175m Contract for IT Services

📅 February 7, 2002 - EDS announced yesterday a $175 million, seven-yearcontract to provide 7-Eleven, Inc. with a full informationtechnology package of integration, storage and hosting services.

Under the agreement, 7-Eleven will pay for services as they are used. Thisscalable solution provides ready-to-go capacity and staff as 7-Eleven'sdemand rises and falls.
"EDS has reacted to 7-Eleven's need for flexibility based on its needs atany given time," said Paulett Eberhart, president of EDS InformationSolutions U.S. "The reliability, stability and cost predictability that EDS'solutions provide enable 7-Eleven to remain well ahead of the competitionwith technology-enabled consumer services that are truly on the fringe."
The new agreement, which extends a contract signed originally in 1995,expands EDS' role as one of 7-Eleven's primary IT providers. The company hasmoved from providing systems development to becoming the company's principalsystems and services integrator, providing hosting and intelligent storageservices for the company's corporate data. Currently, EDS manages 7-Eleven'sdata storage hardware and software. Through the new agreement, EDS will alsocontinue to develop and enhance the chain's ordering, distribution,financial, and vendor systems.
In addition, EDS' hosting solutions will enable 7-Eleven to scale and deployits new self-service delivery vehicle called Vcom, now being tested in 98Texas and Florida 7-Eleven stores. As part of the test, 7-Eleven's customerscan use these touch-screen, ATM-like interactive devices to cash checks,purchase money orders and obtain additional financial services. EDS hosts7-Eleven's Vcom transaction engine and database software, which providestransaction routing between the kiosks and Vcom partners. Additionally, EDSprovides a security program that includes network, kiosk and partner links.7-Eleven plans to begin deploying additional Vcom kiosks this year.
"EDS' reliable, scalable and secure services have helped keep IT systems ontrack and up to date in 5,700 7-Eleven stores in North America so thatcustomers can walk in around the clock and get the products and servicesthey need," said Keith Morrow, 7-Eleven's CIO. "This new agreement gives usgreater value for our IT investment by lowering our operating costs andproviding greater flexibility, which allows us to redirect resources toaggressively pursue e- business initiatives, such as the in-store electronickiosks we are currently testing."
The 7-Eleven contract is the latest "on demand" agreement announced by EDS.In the second half of 2001, EDS announced similar agreements with the CoorsBrewing company and Solutia, Inc.