Deutsche Telekom signs cloud deal with British American Tobacco

On Monday, Deutsche Telekom’s IT subsidiary T-Systems announced the signing of a seven-year cloud contract, worth more than $213 million, with British American Tobacco.



On Monday, Deutsche Telekom’s IT subsidiary T-Systems announced the signing of a seven-year cloud contract, worth more than $213 million, with British American Tobacco.


British American Tobacco, whose brands include Lucky Strikes and Pall Malls, (London) uses SAP systems to operate its businesses around the world and is investing in a consolidation program that will move current SAP deployments into the cloud.  The company aims to have a single instance of SAP operating in 65 global markets by 2016.


According to a Deutsche Telekom (Bonn, Germany) spokesperson, this will allow British American Tobacco to use SAP through the net, as well as scale their allocated resources up and down based on a use-what-you-need and pay-for-what-you-use basis.


“The demand-driven delivery of ICT Services eliminates the need for T-Systems’ customers to buy and integrate components and solutions themselves,” says the spokesperson.  “Up to now they have internal systems which are designed to handle maximum demand, the rest of the time the capacity is not used.”



Over a two-year period, British American Tobacco and T-Systems will transition the business software into the cloud so that SAP services will mirror British American Tobacco’s demands and will couple cost to real usage.

As part of the deal, T-Systems will consolidate approximately 1,500 servers and 1 petabyte (PB) of storage from ten international British American Tobacco data centers into three global data centers in Europe, Asia and South America. T-Systems will also deliver a virtualized computing platform, migrate SAP to its solution platform, delivery IT services, and provider helpdesk services from its locations in Malaysia, the Czech Republic and Slovakia.


British American Tobacco, with more than 200 brands in its portfolio, is sold in around 180 markets worldwide. It has 45 cigarette factories around the globe and employs over 60,000 people.