ICL signs a global deal with Microsoft
Services Ten of millions of pounds invested in joint programme.
ICL has signed a three-year contract with Microsoft, to form a global alliance which will exploit the hardware manufacturer's systems integration stronghold in government, education, retail and enterprise markets.
Keith Todd, ICL chief executive, said the company would draw upon its experience of servicing public sector and enterprise level customers to create 'a new breed of citizen-centric' IT systems. Microsoft will be used for the primary software platform.
Todd said: 'Now the market of one can truly come alive. And I mean a revolution as big as the coming down of the Berlin Wall or the extinction of the dinosaurs.'
The move, which ICL claims will raise revenue by up to 20 per cent, will also create the largest IT training programme in Europe with 4,000 staff becoming Microsoft certified technicians and software developers. It will create 1,000 jobs in Europe, half of these in the UK.
Proposed projects include building internet and intranet systems for schools, introducing point-of-sale software in branches of Marks & Spencer and installing information kiosks to provide the public with access to local and central government information.
While no figures were disclosed, Microsoft executive vice president Steve Balmer confirmed that the software giant would be investing 'several tens of millions of pounds' in the programme.
It was also thought a more active role by Microsoft will guard against the kind of scalability problems that ICL has experienced over its controversial Pathway project, which plans to automate welfare benefit payments throughout the UK's 19,000 post offices.
According to a leaked memo from social security secretary Harriet Harman in March, the #1.5 billion project - which is based upon the NT platform - was two years behind schedule and ICL was demanding more money to continue with the programme. To date only 205 post offices are piloting the scheme.
A representative for ICL said: 'The terms of the contract prevent anyone at ICL from discussing this with the press but I can tell you that Microsoft has been involved in Pathway from the beginning.'
ICL'S RENAMING PROGRAMME
Tplc will be renamed and work more closely with parent company ICL as a single corporate brand is established.
As part of an overall strategy, ICL and its various units will be renamed to reflect their role within the conglomerate. Tplc will now be known as ICL Multivendor Computing.
Some industry commentators have suggested the reseller's independent status will be compromised by ICL's commitment to NT. Tplc will have access to 4,000 Microsoft certified engineers and software developers, as ICL attempts to consolidate operations before its planned flotation in 2000.
Paul Meehan, comercial director of ICL Multivendor Computing said: 'The name accurately describes our role and independent status. While access to Microsoft engineers will be invaluable, we must keep our independence in terms of product supply and licensing.'
The other name changes are:
- ICL Sorbus becomes System Service
- ICL CFM becomes Outsourcing
ICL Enterprises is split into four separate arms under the titles: - Government, Utilities, Telecoms & Media and Travel
- Management Consultancy becomes Applications & Technical Consultancy
- Information Services becomes Electronic Business Services (EBS)
- Education & Consultancy (including Peritas) becomes Education.