Data Centre Consolidation

Vodafone Group Plc 09 November 2006 9 November 2006 VODAFONE TO REALISE COST SAVINGS EARLIER THAN FORECAST FROM CONSOLIDATION OF EUROPEAN DATA CENTRES Vodafone has successfully completed the principal part of the integration of its European data centres into central hubs, deploying state-of-the-art technology. This initiative will deliver considerable cost efficiencies across the Group through the significant reduction of the total number of data centres. Under the initiative, data centres from Vodafone's Northern European operating companies have been integrated into a hub based in Germany, while data centres from the Southern European companies have been centralised in Italy. The German data hub will also manage a third data centre in Ireland that will support the local operation. This phased programme of migration will be completed when the UK finalises its data centre consolidation which is expected within the next 12-18 months. By consolidating its data centres, Vodafone will benefit from improved economies of scale in purchasing IT equipment, reduced duplication and the more efficient use of servers. This will result in improved operational efficiencies and lower running costs in line with the Group strategy of reducing overheads through shared services. As previously announced, the regional consolidation of Vodafone's IT operations is expected to deliver savings of 25 to 30 percent. However, Vodafone now expects to see these savings within two to three years, six months earlier than the three to five years previously predicted in May 2006. During the last financial year, the annual spend of the European IT operations combined opex and capex was approximately £320million. 'Bringing together our European IT operations to create central hubs is an important part of our commitment to leverage the Group's global scale,' said Steve Pusey, Chief Technology Officer for Vodafone Group. 'The initiative is already realising significant benefits to the Group and the operation is delivering on its ambition to be best in class. Service levels are improving and by capitalising on the economies of scale we are able to reduce our costs.' - ends - For further information: Vodafone Group Investor Relations Tel: +44 (0) 1635 664447 Media Relations Tel: +44 (0) 1635 664444 CAUTIONARY STATEMENT This press release contains 'forward-looking statements' within the meaning of the US Private Securities Litigation Reform Act of 1995, in particular with respect to increased operating efficiencies and potential cost and other savings for the Group resulting from the centralisation of its European data centres. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: changes in economic or political conditions in the Group's European markets; operational problems at the Group's newly integrated hubs; the development and use of new technology; exchange rate fluctuations; the ability of the Group to negotiate improved pricing arrangements with its external suppliers; and other unforeseen factors such as a delay in completing the centralisation of the UK data centre. Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found under 'Risk Factors, Trends and Outlook-Risk Factors' in the Group's Annual Report for the financial year ended 31 March 2006. All subsequent written or oral forward-looking statements attributable to Vodafone or any member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. Neither Vodafone nor any of its affiliates intends to update these forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange
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