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Saint-Gobain Selects IBM to Modernize Its Technology Infrastructure to Support Growth in Brazil, Argentina and Chile

August 8, 2008

IBM (NYSE: IBM) today announced that Saint-Gobain, one of the largest industrial groups in Latin America, has signed an agreement with IBM in Brazil to outsource its entire IT infrastructure. Through the agreement, with an initial duration of five years, Saint-Gobain expects to ensure predictability of IT costs, with focus on cost reduction and strict control, as well as support the fast growth of its business in Brazil, Argentina and Chile.

Saint-Gobain conducted a study that demonstrated feasibility of outsourcing, and chose IBM as the most efficient service provider to meet its identified needs. “Because it is a dynamic environment, where new demands arise all the time, we decided to replicate here the service outsourcing model implemented in the headquarters in France. This will allow us to gain more flexibility, and focus our efforts and investments on our core business,” explains Jose Luiz Machado, Saint-Gobain CIO in Brazil. “The contract was signed using the unit price times quantity used pricing model, in which Saint-Gobain will perform monthly payments according to the service utilization.”

IBM will be responsible for storage on demand hosting services, administration, support and IT systems management. The contract also includes migration of all servers installed at Saint-Gobain headquarters in Sao Paulo to two datacenters of IBM’s Global Delivery Center (GDC), in Hortolandia. “Thus, all the critical applications supporting the business will run in our service provision center,” says Marcio Corte Fior, IBM Brazil project executive.

In addition to providing more business flexibility, the project will reduce operational risks through quality improvement and a better control of the services provided by IBM, and provide cost reduction and support to the expected Group’s growth in the next years. Saint-Gobain plans to gradually start using IBM’s infrastructure, located in Hortolandia, in October 2008, and fully deactivate its two datacenters by March 2009. The current Saint-Gobain infrastructure team, which currently has 37 professionals responsible for IT Operations including production, support, architecture and projects, will now focus on business expansion, identifying needs and defining strategies.

The agreement was signed in June of 2008.

About IBM

For more information about IBM, visit http://www.ibm.com/services.

About Saint-Gobain

Saint-Gobain Group was founded in France by order of King Luis XIV in 1665. It was created to produce mirrors for Versailles Palace. Today, Saint-Gobain is a multinational group that produces technological materials. The company is a diversified leader in its several activities, transforming long established materials, such as glass, cast iron, plastics and pottery. Saint-Gobain operates in Brazil since 1937, under various companies such as Saint-Gobain do Brasil, Saint-Gobain Canalizacao, Saint-Gobain Vidros, Saint-Gobain Abrasivos, Cebrace, Jundu and Telhanorte, which distributes construction materials. Quartzolit, Brasilit, PAM, Norton and Santa Marina are some of the Group’s renowned product brands. For more information visit: www.saint-gobain.com.br

 Media Contacts: Florencia Busto Alvarez IBM Latin America Phone: (5411) 5070-3343 bustoa@ar.ibm.com  Jenna Gable IBM Media Relations Phone: (917) 472-3512 gablej@us.ibm.com

SOURCE: IBM




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