T-Systems will assume responsibility for operating the Danish IT and software company KMD's mainframe.
Earlier in March this year, KMD announced they intended to outsource the operations of their mainframe environment to T-Systems. The deal has now been finalized and is set to run for seven years, with the potential for further extension.
Since 2018, KMD has been outsourcing parts for their infrastructure – including the mainframe. The existing agreement for mainframe operations will expire in June, 2025 and T-Systems will take over the responsibility for the operations in the first half of 2025. The rationale for the deal is that KMD forward-looking will focus on their core competencies in developing and delivering sector specific software and services. Therefore, KMD wishes to collaborate and work with highly specialized service providers to ensure reliable and high quality delivery of services to their customers.
T-Systems sees a robust demand for mainframe services and mainframe competencies in the market and finds that for many customers, mainframe remains a vital platform for hosting business critical applications. As a result, T-Systems is investing in mainframe delivery capacity to maintain its position as a strategic business partner, capable of providing end-to-end mainframe services including mainframe hosting, transformation and modernization.
The historical deal is part of the business strategy
The size and scope of the deal makes it the largest for T-Systems in Denmark to date and reflects the newly developed strategy for the Nordic market, which builds on two pillars To deliver secure, stable and sustainable horizontal solutions with emphasis on infrastructure, cloud, cyber security and SAP. It also aims to provide innovative digital solutions and industry specific solutions to manufacturing, life science companies and the transport and logistics sector.
Per Johansson, CEO KMD
It has been of great importance to us that our mainframe environment will continue to be in safe hands going forward. At the same time, it is crucial that our suppliers have strong values that match ours, with a focus on reliability, security, and sustainability. In T-Systems, we have found a strong European-based partner that meets strict European regulatory requirements and has a solid foundation to provide sustainable and stable end-to-end services. T-Systems has shown a high level of understanding our business, which is why we have great confidence that T-Systems will be a strong partner for us and for our customers, and we look forward to a good collaboration.
Klaus Koefoed, Managing Director, T-Systems Northern Europe
Being entrusted with such a significant mandate to run a mainframe is an honor, as the platform supports business critical applications. We are immensely proud of the trust KMD has placed in T-Systems. We aim to fulfill it by delivering stable services and eagerly anticipate the start of our collaboration. The deal is historic for T-Systems and emphasizes our engagement in Denmark and in the Nordics. The deal illustrates the one pillar of our go-to-market strategy, focused on delivering secure and stable infrastructure and cloud services with zero outage to support business critical applications. Simultaneously, we position ourselves with innovative digital solutions that creates tangible business outcomes.
