“Everything indicates things are moving in the right direction and frankly, T-Systems is further ahead than the other partners are.“
Alan Matula, Executive Vice President and Group CIO
“A huge success”
Shell Executice Vice President and Group CIO Alan Matula on global footprints and the value of teaming up with multiple ICT partners.
Why did you decide to transfer hosting and storage to T-Systems?
We are a long established company with an infrastructure that has been built up in pieces over time. We decided to leapfrog the time and effort involved in resolving IT issues internally by partnering with external suppliers. External companies can see things across companies and industries that we can’t see – and we can benefit from your innovation and capability. Also, I don’t believe the IT industry is a collaborative industry – but I think it’s going to have to collaborate more because boundaries are blurring due to the cloud and other new technologies. I think there is a real value proposition to teaming up with more than one partner. And I believe that we picked the right partners.
We are a long established company with an infrastructure that has been built up in pieces over time. We decided to leapfrog the time and effort involved in resolving IT issues internally by partnering with external suppliers. External companies can see things across companies and industries that we can’t see – and we can benefit from your innovation and capability. Also, I don’t believe the IT industry is a collaborative industry – but I think it’s going to have to collaborate more because boundaries are blurring due to the cloud and other new technologies. I think there is a real value proposition to teaming up with more than one partner. And I believe that we picked the right partners.
How about progress so far?
We’re on the right track. I think the first year was harder than we expected, and that’s down to several things – for example, all the partners (not just T-Systems) were slow to staff up. Also, I don’t think any of the partners really grasped how global we are. We operate in 120 countries, and I think that put a lot of pressure on our partners. It also took them some time to get a feel for our infrastructure. But everything indicates things are moving in the right direction and frankly, T-Systems is further ahead – than the other partners are.
We’re on the right track. I think the first year was harder than we expected, and that’s down to several things – for example, all the partners (not just T-Systems) were slow to staff up. Also, I don’t think any of the partners really grasped how global we are. We operate in 120 countries, and I think that put a lot of pressure on our partners. It also took them some time to get a feel for our infrastructure. But everything indicates things are moving in the right direction and frankly, T-Systems is further ahead – than the other partners are.
As you said, Shell is a global company – what does that mean for your partners?
I think our partners realize that if they can map their company to our footprint, then that is a huge competitive advantage. If you can reconcile our geographic and business footprint with the diversity of service levels and other things that we demand, then you should be able to take that value proposition to lots of other companies.
I think our partners realize that if they can map their company to our footprint, then that is a huge competitive advantage. If you can reconcile our geographic and business footprint with the diversity of service levels and other things that we demand, then you should be able to take that value proposition to lots of other companies.
And what does that mean for T-Systems in particular?
I think we have given you a jumpstart towards a broader, global footprint. I also think you’re going to have to accelerate globalisation if you want to continue to grow and prosper. But if any of the three bundles can take advantage of this deal, it’s hosting and storage. The nature of the business means you don’t have to be on site in 150 countries. So you have time to take advantage of the scale that Shell gives you. That’s what we like about the relationship between Shell and T-Systems: you value us because we give you a global footprint. We value you because you’re innovative, you’re hungry – you want to grow. This creates a very complementary relationship. My guess is that T-Systems will be the first of the three core suppliers to earn the right to do more than they were contracted to do.
I think we have given you a jumpstart towards a broader, global footprint. I also think you’re going to have to accelerate globalisation if you want to continue to grow and prosper. But if any of the three bundles can take advantage of this deal, it’s hosting and storage. The nature of the business means you don’t have to be on site in 150 countries. So you have time to take advantage of the scale that Shell gives you. That’s what we like about the relationship between Shell and T-Systems: you value us because we give you a global footprint. We value you because you’re innovative, you’re hungry – you want to grow. This creates a very complementary relationship. My guess is that T-Systems will be the first of the three core suppliers to earn the right to do more than they were contracted to do.
Sounds great. But what about the benefits for Shell?
There are a couple of examples where T-Systems has significantly improved our technical capabilities. The cost reductions are, for the most part, built into the deal, and we are confident they will be realized. But the other big thing is just the raw technical talent and experience that you can bring to the table. I also think our cultures are complementary – in terms of flexibility, and the focus on result versus process, and how to get there.
There are a couple of examples where T-Systems has significantly improved our technical capabilities. The cost reductions are, for the most part, built into the deal, and we are confident they will be realized. But the other big thing is just the raw technical talent and experience that you can bring to the table. I also think our cultures are complementary – in terms of flexibility, and the focus on result versus process, and how to get there.
Some former Shell IT employees transferred to T-Systems – how are they doing?
I think they sense a similar value system to Shell. When you look at T-Systems and you look at Royal Dutch Shell, we both have very strong values and very strong respect for people. And I think generally people see a growth company, a company that’s actually growing, and they feel like they can contribute to it. I haven’t heard anything to counter that.
I think they sense a similar value system to Shell. When you look at T-Systems and you look at Royal Dutch Shell, we both have very strong values and very strong respect for people. And I think generally people see a growth company, a company that’s actually growing, and they feel like they can contribute to it. I haven’t heard anything to counter that.
And how would you evaluate the deal so far? Has it been a success?
My indication of success is that everybody might not be perfectly happy, but after the first year and true-up there are no outstanding issues across all the suppliers. Some people might feel differently, but to go through a deal of this scale and not have any significant contractual issues – I think that’s a huge success.
My indication of success is that everybody might not be perfectly happy, but after the first year and true-up there are no outstanding issues across all the suppliers. Some people might feel differently, but to go through a deal of this scale and not have any significant contractual issues – I think that’s a huge success.
