Adidas outsources Web operation

Sports goods manufacturer Adidas-Salomon has signed an agreement to outsource its worldwide Internet operations in a move...

Sports goods manufacturer Adidas-Salomon has signed an agreement to outsource its worldwide Internet operations in a move designed to consolidate resources and cut costs.

The deal, announced last week, will see the sportswear giant using the software and services developed by US software provider Loudcloud to manage and monitor the infrastructure behind its Web site. Loudcloud's Opsware technology will enable the sports goods firm to automate and streamline tasks that were previously carried out manually.

The ability to reduce up-front hardware and software costs in favour of a monthly bill based on the needs of the business was another key factor behind the deal. Adidas said the outsourced service would also be able to scale up on demand to cope with traffic surges driven by specific sporting events.

The company's decision to outsource its entire Web operation comes just over a year after its US subsidiary, Adidas America, was thrown into turmoil when its e-commerce application service provider Pandesic - which was jointly owned by Intel and SAP America - collapsed without warning.

Earlier this month, cosmetics giant Estée Lauder signed a similar deal with Loudcloud to manage its Internet operations.

Estée Lauder, which recently announced a $19m restructuring of its IT infrastructure, said the deal would free up internal resources to better focus on using the Internet as a new channel for servicing its customers.

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