9th Nov 2006 09:00
Vodafone Group Plc09 November 2006 9 November 2006 VODAFONE TO REALISE COST SAVINGS EARLIER THAN FORECAST FROM CONSOLIDATION OF EUROPEAN DATA CENTRES Vodafone has successfully completed the principal part of the integration of itsEuropean data centres into central hubs, deploying state-of-the-art technology.This initiative will deliver considerable cost efficiencies across the Groupthrough the significant reduction of the total number of data centres. Under the initiative, data centres from Vodafone's Northern European operatingcompanies have been integrated into a hub based in Germany, while data centresfrom the Southern European companies have been centralised in Italy. The Germandata hub will also manage a third data centre in Ireland that will support thelocal operation. This phased programme of migration will be completed when theUK finalises its data centre consolidation which is expected within the next12-18 months. By consolidating its data centres, Vodafone will benefit from improved economiesof scale in purchasing IT equipment, reduced duplication and the more efficientuse of servers. This will result in improved operational efficiencies and lowerrunning costs in line with the Group strategy of reducing overheads throughshared services. As previously announced, the regional consolidation of Vodafone's IT operationsis expected to deliver savings of 25 to 30 percent. However, Vodafone nowexpects to see these savings within two to three years, six months earlier thanthe three to five years previously predicted in May 2006. During the lastfinancial year, the annual spend of the European IT operations combined opex andcapex was approximately £320million. "Bringing together our European IT operations to create central hubs is animportant part of our commitment to leverage the Group's global scale," saidSteve Pusey, Chief Technology Officer for Vodafone Group. "The initiative isalready realising significant benefits to the Group and the operation isdelivering on its ambition to be best in class. Service levels are improving andby capitalising on the economies of scale we are able to reduce our costs." - ends - For further information: Vodafone Group Investor RelationsTel: +44 (0) 1635 664447 Media RelationsTel: +44 (0) 1635 664444 CAUTIONARY STATEMENT This press release contains "forward-looking statements" within the meaning ofthe US Private Securities Litigation Reform Act of 1995, in particular withrespect to increased operating efficiencies and potential cost and other savingsfor the Group resulting from the centralisation of its European data centres. Bytheir nature, forward-looking statements are inherently predictive, speculativeand involve risk and uncertainty because they relate to events and depend oncircumstances that will occur in the future. There are a number of factors thatcould cause actual results and developments to differ materially from thoseexpressed or implied by these forward-looking statements. These factors include,but are not limited to: changes in economic or political conditions in theGroup's European markets; operational problems at the Group's newly integratedhubs; the development and use of new technology; exchange rate fluctuations; theability of the Group to negotiate improved pricing arrangements with itsexternal suppliers; and other unforeseen factors such as a delay in completingthe centralisation of the UK data centre. Furthermore, a review of the reasonswhy actual results and developments may differ materially from the expectationsdisclosed or implied within forward-looking statements can be found under "RiskFactors, Trends and Outlook-Risk Factors" in the Group's Annual Report for thefinancial year ended 31 March 2006. All subsequent written or oralforward-looking statements attributable to Vodafone or any member of the Groupor persons acting on their behalf are expressly qualified in their entirety bythe factors referred to above. No assurances can be given that theforward-looking statements in this document will be realised. Neither Vodafonenor any of its affiliates intends to update these forward-looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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