IBM beats HP to Smirnoff deal

NEW YORK: International Business Machines Corp. on Friday said it won a seven-year contract to manage networks and computers for Diageo Plc, the maker of Guiness beer and Smirnoff vodka.

Meta Group analyst Stratos Sarassamlis estimated the deal was worth between $400 million and $500 million. He said it was significant for IBM because the beverage maker usually buys its technology from IBM rival Hewlett-Packard Co.

"It's an HP shop," he said, adding IBM beat out computer services provider, Computer Sciences Corp.

IBM said it would help Diageo tie together a far-flung network of computer systems acquired during five intense years of mergers. IBM said the services would be provided under its "on demand" model - which allows for flexibility in use of technology, paying for how much technology is needed at any given point in time.

HP and CSC were not immediately available for comments.

© Reuters