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HP (HPQ) Receives $2B App and Infrastructure Services Contract from Gemeral Motors (GM)

July 21, 2010 7:47 AM EDT
GM Hot Sheet
Overall Analyst Rating:
    BUY (Up Up)

Revenue Growth %: +4.4%
HP Enterprise Services today announced it has been awarded a multiyear applications and infrastructure services contract valued at more than $2 billion to help General Motors Company (NYSE: GM)(OTCBB: MTLQQ) maintain focus on its business goals in a highly competitive market.

Under the terms of the agreement, HP (NYSE: HPQ) will manage GM’s technology infrastructure with a focus on providing an enhanced and continuously improving world-class end-user experience – from manufacturing plants to the boardroom. HP will provide network, workplace, mainframe management, applications and systems integration services for GM’s global operations, including OnStar.

The new agreement covers a significant portion of HP’s existing work with GM. It also renews the contract one year early and extends the two companies’ 25-year relationship.

“GM’s innovative business and in-vehicle technology strategy requires collaborative, cost-effective approaches so we can provide even better service to our customers as we design, build and sell the world’s best cars and trucks,” said Terry Kline, vice president, IT, and chief information officer, GM. “HP has been one of our most long-term, reliable partners with a team that has the expertise and creativity to help us quickly and successfully complete new phases of our business strategy.”

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