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Print Edition StoriesFriday, May 29, 2009
Novell, ACS form outsourcing, supply partnership
By Mass High Tech staff
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Novell Inc., the Waltham-based open-source IT infrastructure provider, has partnered with Affiliated Computer Services Inc. in a five-year $135 million contract in which Novell will outsource some internal information technology services to ACS (NYSE: ACS). The partnership also entails ACS paying Novell (Nasdaq: NOVL) at least $30 million in the first three years for Novell products.
The outsourcing partnership involves shifting service delivery from the 156 employees of Novell Information Services and Technology group in Provo, Utah. A release from both companies does not outline where ACS will then outsource this work, but Novell officials expect “significant cost savings.”
Among the services included in the partnership is the improvement of the ACS Management Platform for outsourcing -- which would get cloud computing, auto provisioning and process automation enhancements. ACS will also buy Novell-produced solutions for the SUSE Linux Enterprise operating system, business service management, identity and security solutions and Platespin workload management.
In February, Novell reported acquiring the technology assets of Fortefi Ltd., a U.K.-based provider of IT security software. It also signed a permanent license to use the SecureLogin sign-on software made by California-based ActivIdentity Corp.
Novell reported a net loss of $8.7 million on total revenue of $956.5 million in 2008.
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