Vodafone Group Plc
09 November 2006
9 November 2006
VODAFONE TO REALISE COST SAVINGS EARLIER THAN FORECAST FROM CONSOLIDATION OF
EUROPEAN DATA CENTRES
Vodafone has successfully completed the principal part of the integration of its
European data centres into central hubs, deploying state-of-the-art technology.
This initiative will deliver considerable cost efficiencies across the Group
through the significant reduction of the total number of data centres.
Under the initiative, data centres from Vodafone's Northern European operating
companies have been integrated into a hub based in Germany, while data centres
from the Southern European companies have been centralised in Italy. The German
data hub will also manage a third data centre in Ireland that will support the
local operation. This phased programme of migration will be completed when the
UK finalises its data centre consolidation which is expected within the next
12-18 months.
By consolidating its data centres, Vodafone will benefit from improved economies
of scale in purchasing IT equipment, reduced duplication and the more efficient
use of servers. This will result in improved operational efficiencies and lower
running costs in line with the Group strategy of reducing overheads through
shared services.
As previously announced, the regional consolidation of Vodafone's IT operations
is expected to deliver savings of 25 to 30 percent. However, Vodafone now
expects to see these savings within two to three years, six months earlier than
the three to five years previously predicted in May 2006. During the last
financial year, the annual spend of the European IT operations combined opex and
capex was approximately £320million.
'Bringing together our European IT operations to create central hubs is an
important part of our commitment to leverage the Group's global scale,' said
Steve Pusey, Chief Technology Officer for Vodafone Group. 'The initiative is
already realising significant benefits to the Group and the operation is
delivering on its ambition to be best in class. Service levels are improving and
by capitalising on the economies of scale we are able to reduce our costs.'
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For further information:
Vodafone Group
Investor Relations
Tel: +44 (0) 1635 664447
Media Relations
Tel: +44 (0) 1635 664444
CAUTIONARY STATEMENT
This press release contains 'forward-looking statements' within the meaning of
the US Private Securities Litigation Reform Act of 1995, in particular with
respect to increased operating efficiencies and potential cost and other savings
for the Group resulting from the centralisation of its European data centres. By
their nature, forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of factors that
could cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements. These factors include,
but are not limited to: changes in economic or political conditions in the
Group's European markets; operational problems at the Group's newly integrated
hubs; the development and use of new technology; exchange rate fluctuations; the
ability of the Group to negotiate improved pricing arrangements with its
external suppliers; and other unforeseen factors such as a delay in completing
the centralisation of the UK data centre. Furthermore, a review of the reasons
why actual results and developments may differ materially from the expectations
disclosed or implied within forward-looking statements can be found under 'Risk
Factors, Trends and Outlook-Risk Factors' in the Group's Annual Report for the
financial year ended 31 March 2006. All subsequent written or oral
forward-looking statements attributable to Vodafone or any member of the Group
or persons acting on their behalf are expressly qualified in their entirety by
the factors referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. Neither Vodafone
nor any of its affiliates intends to update these forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
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