Everything Everywhere moves 40 per cent of its IT to the cloud

Mobile operator Everything Everywhere will transfer 40 per cent of its internal IT systems to the cloud on 1 July as the result of a seven-year IT outsourcing deal with T-Systems.

The deal is thought to be worth about £700m.

The original outsourcing contract, struck in March, covers delivery of desktop services, datacentre operations and infrastructure management, IT applications support and ITIL support processes.

This contract set out a path for migrating 40 per cent of Everything Everywhere's IT estate onto T-Systems' Dynamic cloud platform within three years.

Mark O'Conor, partner and technology lawyer from DLA Piper, said that while Everything Everywhere's cloud deal with T-Systems resembles a straight outsourcing deal, it is in fact an "evolution" on the traditional outsourcing model.

He explained that the main differences between an outsourcing deal and a cloud services deal of this sort are:

1) The buyer – in this case Everything Everywhere – would not have to buy its own physical kit.

2) Many cloud services, particularly infrastructure-as-a-service (IaaS) are located offshore and so are cheaply priced.

3) The management of demand lies with the supplier – the solution must be scalable.

4) Everything Everywhere will procure the service as if it is a utility and on a per use basis.

O'Conor also said that a cloud contract of this size would have been negotiated very carefully and would not fit into the "one size fits all" public cloud services model.

"Everything Everywhere will have drawn up a bespoke contract looking at data, security, step-in rights and audit rights," he said.

As a result of the agreement, around 220 staff will transfer from Everything Everywhere to T-Systems.