Major server consolidation project announced as Saudi Telecom Co. and Sun Microsystems sign enterprise contract

The agreement positions Sun as STC's major technology source for IT infrastructure hardware, software, professional services and support needs.

In parallel, STC has chosen Sun as a major vendor for its Server Consolidation and Centralization Project to provide an enterprise-scale server infrastructure based on Sun Fire E25K high end servers and Sun Solaris 10 Operating system.

Sun Microsystems and STC are no strangers to one another. 'We have relied on Sun for most of our OSS and GSM networks and services over the last few years and Sun was the first to work with STC on an end-to-end Server consolidation strategy and execution,' said Mr. Ibrahim Dhobaie, Vice-President, STC.

Mr. Sulaiman Al Othman, STC IT Planning General Manager added, 'Sun has continually shown a firm commitment to STC and as we maintain our market leadership, Sun support will become increasingly critical to us.'

Sun already provides the platforms powering STC's GSM services, BSS/OSS and data networks. Sun Fire servers support many of the company's business applications such as enterprise integration, document management, CRM & customer care, call centers, security, workforce management, and e-business functions, e-payment gateways, 3G network and services.

Seeking to lower its total cost of ownership while increasing its flexibility to meet new business requirements and changes in the marketplace, STC decided to consolidate its server infrastructure into multiple Sun E25Ks.

'By signing these agreement contracts and winning this project, Sun has received the ultimate vote of confidence from one of Saudi Arabia's most eminent companies, further cementing our existing relationship,' said Chris Cornelius, managing director, MENA, Sun Microsystems. 'The deal may not be exclusive, but it does mean that when STC has an IT infrastructure requirement, it will look at Sun first.'

Yazan Al Ajlani, Sun Account Sales Manager for STC, said, 'By understanding STC's business and growth objectives, Sun has been able to engage with STC as a solution partner - not just as a platform provider. Analysing total cost of ownership (TCO) and providing best return on investment (ROI), the server consolidation project in particular and signing a direct contract, are two strategic steps that assist in developing our relationship further.'

Saudi Arabia is an important market for Sun Microsystems. The company has offices in Jeddah, Riyadh and Al Khobar and in the past year, has increased its share of the Middle East's industry-specific solutions market by more than a quarter.

STC is Saudi Arabia's major cell phone network operator. The Government is opening the market up to competition and a third GSM operator in 2007 will enter the market, according to sources. Saudi mobile phone usage is increasing at 30 percent a year and handset penetration is still below the international average. Most expect the Saudi GSM market to keep on growing strongly.