£500m IBM voice and data services deal to enable Lloyds TSB’s next-generation business solutions

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London - 06 Dec 2004: IBM has signed a 7-year £500 million deal with Lloyds TSB to enhance the Bank's voice and data services in support of next-generation business solutions.

IBM will act as the strategic technology partner for Lloyds TSB as the bank moves to a national dedicated high-capacity fibre, DSL and MPLS network supporting both voice and data communications. The network integration and management will be provided by Vanco, a global Virtual Network Operator, and will include technology from a variety of carriers to provide high performance connectivity to all Lloyds TSB branches and cashpoint machines. Vtesse Networks, a gigabit optical networking provider, will supply the high-capacity fibre network.

The implementation, which includes almost 70,000 Voice over IP (VoIP) telephones, is one of the largest ever in Europe and will reduce Lloyds TSB's network costs, while providing a flexible, variable-cost, high-bandwidth, on demand infrastructure that will support the bank's evolving business requirements.

"Not only will we provide dramatic efficiency improvements, but we will also open complete new horizons in terms of possible applications to support Lloyds TSB's business," said Tony Cronin, General Manager, EMEA Financial Services Sector, IBM Global Services. "The new infrastructure, which can easily support initiatives such as server consolidation or voice over IP, provides a responsive, variable-cost and on-demand communications architecture that can be aligned directly to Lloyds TSB's business structure. Business processes that might once have been restricted by the inflexibility of the infrastructure, can now be enhanced in response to competitive or customer demands."

"This project will allow us to increase the cost efficiency and enhance the flexibility of our IT infrastructure, by providing our staff with a more efficient and responsive service for our customers," added Igor Andronov, director of IT at Lloyds TSB. "In working with IBM, we benefit from its expertise in project management and this innovation will help to transform our infrastructure into a 24 hour service platform for our business systems."

This new solution will reduce incremental bandwidth costs, allowing Lloyds TSB to consider alternative Web-based or bandwidth-hungry applications that would not previously have been viable. The new infrastructure, which will be rolled out over the next 20 months, will feature a single network for voice, data and video with direct links to mobile and call centre services.

"Our clients are now demanding wider business transformation services engagements where they not only gain significant cost reductions, but can also achieve step changes in effectiveness and business capability allowing them to respond to changing market conditions," added Cronin.

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