Sep, 2001 : Solutia Awards EDS Contract For On-Demand IT Services

📅 September 26, 2001 - EDS (eds.com) announced yesterday a seven-year contract with Solutia, Inc. (solutia.com), renewing and expanding an existing three-year relationship with the St. Louis-based specialty chemicalsmanufacturing company.

Under terms of the new agreement, EDS will expand the scope of the managedservice it provides Solutia, delivering SAP "on demand." Historically,Solutia has had primary responsibility for day-to-day maintenance anddelivery of the SAP system software. EDS has been responsible formaintenance, and some ownership, of only the hardware platform - the serversupon which the SAP application is run.
The new agreement calls for EDS to coordinate all software upgrades tosupport the delivery of SAP functionality to Solutia with flexible levels ofprocessing power and data storage delivered from EDS' existing SUNinfrastructure. SAP application development and maintenance will continue tobe delivered by Solutia personnel. The transition of what had been a fixedcost to a variable one is particularly attractive to companies in rapidlyevolving industries like the chemical industry, where merger and acquisitionactivity can overnight change the level of enterprise software support acompany needs.
The flexibility of this delivery model allows Solutia to scale up or down,using only the amount of processing power, server space and other attendantcapital costs associated with the level of SAP required in a given month.Also under the terms of the new contract, EDS will expand the scope of theIT services it provides Solutia to include Web hosting, non-SAP applicationserver support, LAN and PBX/voice mail support services for its St. Louisheadquarters.
"Almost four years ago, when we were establishing Solutia as an independentcompany, EDS assumed operational responsibility for our enterprise ITinfrastructure," said Johnnie Foster, Solutia's CIO. "This was a criticaltime for our company, and EDS delivered stable service with highavailability around the clock, which has enabled us to adapt quickly tomarket changes. The contract extension we're announcing today expands thescope of services we will receive from EDS, allowing our leadership to focuson our core business. EDS' leveraged services will help us reduce IT spendand reduce risk, since we now have flexibility and greater cost controlbased on our actual business needs."
Since 1998 EDS has provided Solutia's telecommunications services, includingvoice, video and data; mid-range server hosting; and desktop and call centersupport. Over the last three years, EDS built, and continues to maintain, asignificant portion of the company's global IT infrastructure, including a24x7 SAP environment and a global network to support more than 5,200desktops.
The Solutia contract is the second "on demand" agreement announced by EDSthis quarter. In August EDS announced a similar agreement with the CoorsBrewing company, allowing the Golden-based brewer to use variable levels ofstorageand processing power tied to the number of users in any given month.

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