TECHNOLOGY NEWS: Royal Mail Group picks Capgemini as cloud-computing partner

Royal Mail Group has signed a six-year cloud computing contract with Capgemini UK help to reduce its annual website IT costs and support expansion and diversification into a wide range of new web-based business opportunities.

The new technology hopes to be quickly and easily reconfigured to support RMG in launching new business ventures and bringing new services to market as quickly as possible.

Royal Mail Group believe areas including services for personal and small or medium business customers parcel delivery services are ripe for expansion.The new technology hopes to allow RMG to keep pace with the emerging technologies and media being adopted by today's consumers.

Stuart Curley, chief technology architect of Royal Mail Group said, "This contract is great news for our business, our customers and our employees. Once the migration is complete, we will be paying for the IT we need as and when we need it, so that we can for the first time bring our IT costs firmly in line with revenues. I am confident that this new way to buy IT also gives us a sound basis for cutting our ongoing IT costs, transforming services to customers and supporting new business ventures."

The deal centres on Capgemini's Infostructure Transformation Services (ITS) and on its Capgemini Immediate computing solution.

Capgemini Immediate supposedly enables an ‘ecosystem' of third party IT suppliers to provide services within the overall solution, with Capgemini acting as services integrator and prime contractor.

Christine Hodgson, lead of technology services Europe (UK and Benelux) and member of the group executive committee, said: "This important contract at RMG marks a coming-of-age for cloud computing in the UK and gives us the opportunity to show what this exciting new technology can do in terms of speed, cost effectiveness, scalability and flexibility. We look forward to working with RMG to support its move into new and exciting areas of business."