Global telecoms giant, Vodafone has announced it has successfully completed the key plank in its European data centre consolidation process.
The initiative to integrate its European data centres into a central hub, deploying state-of-the-art technology is part of CEO Arun Sarin's pledge to the financial markets to cut costs to help drive further the company's growing revenues and reduce its overall IT budget. During the last financial year, the annual spend of Vodafone's European IT operations combined opex and capex was approximately £320 million.
Data centres from Vodafone's Northern European operating companies have been integrated into a hub based in Germany, which will also manage a third data centre in Ireland that will support the local operation. Data centres from the Southern European operating companies have been centralised in Italy.
The phased programme of migration will be completed when the UK finalises its data centre consolidation which is expected within the next 12-18 months.
As previously announced, the regional consolidation of Vodafone's IT operations is expected to deliver savings of 25 to 30 percent. However, Vodafone now expects to see these savings within two to three years, six months earlier than the three to five years previously predicted in May 2006.
"Bringing together our European IT operations to create central hubs is an important part of our commitment to leverage the Group's global scale," said Steve Pusey, Chief Technology Officer for Vodafone Group. "The initiative is already realising significant benefits to the Group and the operation is delivering on its ambition to be best in class. Service levels are improving and by capitalising on the economies of scale we are able to reduce our costs."