Royal Mail has signed a six-year deal with Capgemini to introduce cloud computing technology to its IT infrastructure and enable it to cut costs through a pay-as-you-go IT model and make it easier to introduce new online services.
Through Capgemini's Infostructure Transformation Services (ITS) the Post Office will have a single point of contact for all cloud services.
Costs come down because the Royal Mail will only pay for the raw computing power it uses when delivering a service. It also makes it easy to introduce new services because additional computing resources can be taken on demand without the long and expensive process of buying hardware and booking other IT resources.
Stuart Curley, chief technology architect at Royal Mail Group, said the pay-as-you-go model will cut costs. "Once the migration is complete, we will be paying for the IT we need as and when we need it, so we can for the first time bring our IT costs firmly in line with revenues," he said. "I am confident that this new way to buy IT also gives us a sound basis for cutting our ongoing IT costs while transforming services to customers and supporting new business ventures."
The Post Office is also using the Capgemini Immediate service which will give it access to other services by making available an ecosystem of IT suppliers to provide services, with Capgemini acting as services integrator and prime contractor.