Siemens, IBM to modernize non-military IT systems of German armed forces

Siemens, IBM to modernize non-military IT systems of German armed forces

IBM and Siemens have collectively won a contract worth 7.1 billion euro from the German government. These two IT companies would modernize and manage the non-military IT systems of the country’s armed forces.

In all, Siemens would be getting 60% of the deal. IBM would take the rest.

The news helped Siemens gain at the stock market as the share price rose 1.2 percent to 75.02 Euros.

IBM and Siemens would co-manage the project, jointly holding 50.1 percent in the consortium running it. The rest of the share would be owned by German government.

The two companies have already been working with the German armed forces and they are likely to sign the contracts pretty soon. IBM would take over the modernizing the data centers. Siemens on the other hand would work on PCs, servers and phone systems at more than 1,500 locations around Germany.