HP, IBM Land Korean Utility Computing Deals

Large IT companies, including IBM and HP, are seeing good results from their strategies for on-demand service contracts.

SEOUL, Korea—Large IT companies here, including IBM and Hewlett-Packard Co., are seeing good results from their strategies for on-demand service contracts, or "utility computing."

HP Korea clinched a comprehensive IT outsourcing service contract for ERP implementation at Olympus Korea. HP will implement an ERP solution for Olympus once the existing infrastructure has been migrated to an HP data center. For the rest of the year, HP will be responsible for forming an information strategy plan and implementing a functional application for Olympus Korea. HP Korea has emphasized that Olympus Korea is the first case of HPs Adaptive Enterprise (AE) strategy, pointing out that this contract includes their data center virtualization service, Utility Data Center (UDC).

IBM Korea has also signed up e-business on-demand clients recently, including Daegu Bank and Samyang Co. Ltd. Samyangs system, implemented as part of a sales force automation (SFA) contract concluded early this year, launched on July 1.

IBM also confirmed a contract with Daegu Bank to operate its on-demand Bancassurance IT business. IBM Korea will transfer Daegu Banks Bancassurance system to an e-IB hub center within IBM Koreas data center. This contract with Daegu Bank includes operating the business processes and networks of insurance companies as well as developing Web-based applications.

Other potential clients for complete IT outsourcing include Korea Investment & Securities, Shinyoung Securities and Dongwon Securities. HP Korea and IBM Korea are paying close attention to these prospects, and Korea Investment & Securities has already identified HP Korea and IBM Korea as two of three companies that they are considering for this business.