MTS and Sitronics have entered into a three-year contract with Oracle to purchase and integrate Oracle licenses into all the companies of the MTS group, Russian business daily Vedomosti reported this Tuesday. Sitronics will maintain the purchased software.
MTS, one of Russia’s leading mobile operators, and Sitronics, a major Russian provider of corporate telecommunications solutions, are both controlled by Sistema, a large diversified financial corporation operating in Russia and the Commonwealth of Independent States (CIS).
The contract is valued between $60 million and $80 million, according to unnamed insiders quoted by Vedomosti, while another source said the amount is more than $70 million.
In the contract, MTS purchased an unlimited number of licenses for almost all of the solutions in Oracle’s business software suite, from Enterprise Resource Planning (ERP) to Client Relationship Management (CRM) to business performance. The unrestricted quantity of licenses will enable MTS to be independent from the pricing policy of Oracle, said Irina Lanina, vice president of Sitronics. As a result, MTS could save about 20% of its IT-procurement budget, according to another Vedomosti source.
This contract with MTS is one of the largest in the history of Oracle’s Russian subsidiary. It is second only to a 2003 contract with Svyazinvest, a state-owned leading Russian telecommunications group. That contract amounted to $153 million for purchasing 70,000 licenses for the ERP solution of the Oracle E-Business Suite and implementing those licenses into the group’s subsidiaries.
Source: Vedomosti
