Negotiations are underway between Sun and EDS to define an eight-year services agreement that would allow EDS to transform the operations of Sun's data centers to the EDS Agile Enterprise Platform. Additionally, the companies have agreed to jointly deliver IT solutions, including utility computing services based on the SolarisTM 10 Operating System (Solaris OS).

Financial details of the proposed transaction were not disclosed.

The EDS Agile Enterprise Platform provides flexible IT systems designed to empower enterprises to manage change through agile processes, applications and technology architectures. Plans are to have EDS operate Sun's data centers and data center systems, in addition to providing other technical services related to business systems and Internet operations. This platform will be supported by the Solaris 10 OS. "The combination of EDS' services, plus Sun's solutions is powerful," said Scott McNealy, chairman and CEO, Sun. "We share the same vision for the future - to deliver highly reliable IT solutions to customers more efficiently. Today that strong relationship is advancing forward by leveraging each other's strengths for our collective customers worldwide. It proves the old adage that two heads are better than one."

EDS has been providing data center services to Sun since 2000, and the two companies have been strategic partners since 1997. Sun is a founding member of the EDS Agility Alliance, which is a federation of technology companies collaborating to innovate, develop and deliver the EDS Agile Enterprise Platform. Sun also is an EDS preferred partner for enterprise-wide network computing, outsourcing environments and utility-based computing for the EDS Agile Enterprise Platform.

"An extension of the data center contract with Sun further validates the strong partnership between EDS and Sun," said Michael Jordan, chairman and chief executive officer, EDS. "The combination of Sun's world-class technology with EDS' world-class IT services not only benefits our two companies, but also extends this value to our mutual clients. We look forward to elevating that relationship individually and as we work collaboratively with other EDS Agility Alliance partners."

In addition to Sun's EDS-managed data centers in Europe, Asia and the U.S., the companies will jointly develop and test enterprise offerings in Sun's iForceSM partner center in Menlo Park, Calif., and EDS' Agility Alliance Development Center in Plano, Texas. [...read more...]

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