IBM & Siemens in Germany Take Up the Labours of HERKULES

Bundeswehr data centre(click to view full) In late December 2006, the German Federal Armed Forces commissioned a consortium consisting of Siemens Business Services (SBS) and IBM to modernize and manage its non-military information and communications technology under the HERKULES project. A company called BWI Informationstechnik GmbH (BWI IT) has been formed in Meckenheim near Bonn, Germany to supply the relevant IT services. Siemens and IBM hold 50.1% of the shares in a 25.05%/ 25.05% split, while the German Federal Government holds 49.9%. The Bundeswehr is represented on the board of directors, and the consortium is open to audit by the military, the German Defense Ministry and the General Accountants Office. The 10-year contract is now worth approximately EUR 7.1 billion (currently about $9.3 billion), including value added tax. This is touted as the largest current public-private partnership (PPP) in Europe, and up to 2,950 German Federal Armed Forces IT employees will be working within the project. After 10 years, BWI will revert to 100% Bundeswehr control. The project is underway, but rising costs are leading to rumbles about cancellation: * From the Hydra to the Stables: Bids, and Responsibilities * Grabbing the Bull by the Horns: Controversies * Boaring Execution: […]