Under the terms of the five-year contract, AT&T will provide a fully managed global Internet protocol virtual private network integrating 390 Degussa locations worldwide.Degussa, a German specialty chemicals manufacturer, said Wednesday it has selected Bedminster”s AT&T (NYSE: T) as its sole provider for a worldwide data network. The five-year contract is worth $45 million.
Under the terms of the agreement, AT&T will provide a fully managed global Internet protocol virtual private network (IP VPN) integrating 390 Degussa locations worldwide.
AT&T”s IP VPN will provide Degussa”s 45,000 employees worldwide with secure, high-speed online access to corporate databases and proprietary applications while reducing operating costs.
“We anticipate significant improvements in reducing our network complexity as well as further progress on the security side,” Lucas Kuttler, chief information officer for Degussa, said.
“From a business and cost point of view the reduced complexity will lead us, mid-term, to cost reduction while maintaining current standards.”
At the close of trading, AT&T shares were down $0.01 to $18.96.