IBM Enters Services Agreement with Solectron

IBM announced a 10-year, $1.8 billion services agreement with Solectron, a supply chain facilitator for customized electronics technology solutions based in Milpitas, CA. IBM will help Solectron to establish a flexible, reliable IT infrastructure yielding a faster response to the demands of the dynamic global electronics marketplace. The e-business enabled, end-to-end solution is expected to improve products and service speed to market, enhance quality of IT service and generate operational efficiencies in all of Solectron's 57 sites worldwide.

The agreement includes Solectron's mission-critical Enterprise Resource Planning applications, network services, data centers, desktop computers and extending e-business systems throughout the Solectron supply chain.

"Solectron's rapid growth has created the need to further develop its infrastructure to optimize our performance and accommodate continuing growth and success," said Walt Wilson, senior VP of Solectron's business integration and information technology, and president of Solectron Americas.

"This partnership with IBM will ensure that our IT capabilities keep pace with ever-growing business demands. The agreement will increase our ability to provide faster, more reliable and uniform delivery of product and services to our global customers and it will allow us to focus on our strengths," he added.

For global consistency in business processes, Solectron will use IBM's application management resources, including proven tools, methods and dedicated teams, to deliver greater enterprise systems value. More than 145,000 users are already benefiting from IBM enterprise application management services for customers worldwide. Solectron also will draw from IBM's 133 data centers and 138,000 services professionals around the world to assist in leveraging IT resources and improving current operations in 18 countries.

The $1.8 billion IT services agreement further extends a 22-yearrelationship between the two companies.