Siemens-IBM ink deal with German military

updated 8:15 a.m. ET Dec. 28, 2006

BERLIN - The German military said Thursday it has tasked a consortium run by Siemens AG and IBM Corp. with modernizing and running much of its communication network, awarding a contract worth some $9.3 billion (7.1 billion euros) over 10 years.

The project, codenamed “Herkules,” foresees the modernization of the administrative information technology system and of communication networks for the German armed forces, the Bundeswehr.

According to a statement from the military, that covers more than 140,000 computer work stations, 7,000 servers, 300,000 telephones and 15,000 mobile phones.

Siemens Business Services and Armonk, N.Y.-based IBM’s German unit jointly will hold 50.1 percent of a company being founded with the German government, named BWI Informationstechnik GmbH, to carry out the project.

The federal government will hold the remaining 49.9 percent.

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