Indian giant Tata Steel is moving two legacy e-mail systems to Microsoft's cloud-based Office 365 system across its European business.
The move will be Tata Steel's first major shift into the cloud and is one of the biggest deployments of Microsoft Office 365 in Europe.
Tata's main operations in Europe are based in the UK and Holland. The migration work has been outsourced to Capgemini UK, which will work with Microsoft to integrate the system with the existing Tata infrastructure.
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Security, collaboration and lower costs were important considerations for using the Office 365 platform, which was launched in June this year.
Shreekant Mokashi, chief of group information services at Tata Steel, says the enterprise-ready cloud communications platform will "be a significant contributor to our plans to reduce our overall IT operating costs."
"We found the joint Microsoft and Capgemini proposal convincing both technically and commercially and we look forward to gaining the many benefits of the new solution with speed," he said.
The deal is a sign that large enterprises see the cloud-based platform as an opportunity rather than just the small businessess it was initially aimed at.
Office 365 customers in the UK include Alliance Healthcase, Hornblower business brokers, UKBI, St Andrews College, Ealing Council, Dorma and Kensington Enterprises.