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In a deal that could be worth billions of dollars over the next 10 years, HP has signed a "relationship agreement" with Alcatel-Lucent "to help customers leverage the convergence of telecommunication and IT." The yet-to-be-executed agreement will see the companies launch a program to transform mid- and large-size enterprise and public sector organizations’ communication networks into converged, next-generation infrastructures. Alcatel-Lucent products in areas such as IP telephony, unified communications, mobility, security and contact centers will be integrated with HP IT solutions that will be offered through HP resellers or as managed services.

As part of the partnership, HP will transform and manage a large part of Alcatel-Lucent’s IT infrastructure. According to the Wall Street Journal, Alcatel will transfer 1,000 jobs to HP as part of the deal and this will result in cost savings of 750 million euros by year end.

"We expect customers will be able to create new business opportunities and greater efficiencies from this alliance," said Mark Hurd, HP chairman and CEO, in a release. "By combining our deep expertise in IT and communications, HP and Alcatel-Lucent will help customers transform their technology needs into a competitive edge."

In addition to looking forward to best-in-class solutions for its IT needs, Alcatel-Lucent CEO Ben Verwaayen said the alliance represents a major transformational deal. "IT and telecom are coming together in an unprecedented way and I am delighted to see how we can speed up innovation in our industry."

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