Hardware delivery contract concluded between Sberbank of Russia (Contract Holder No. 1), IBM (International Business Machines Corporation; Contract Holder No. 2), Oracle Corporation (Contract Holder No. 3), HP (Hewlett-Packard; Contract Holder No. 4), EMC Corporation (Contract Holder No. 5) and Hitachi Ltd. (Contract Holder No. 6).Contract is concluded to the amount of $1 billion.

IT

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Friday, 06.02.15, MTS

Text done by Dennis Voyeikov

Foto done by Cnews

Vendors determination is done by Sberbank of Russia according to the results of several tenders. Determined vendors supply Sberbank of Russia with servers and data storage system during two years.

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Sberbank of Russia within the period from December to January has called for a range of large tenders for delivery of head-end equipment and for delivery of data storage systems. The delivery clients (customers) are IBM (International Business Machines Corporation), Oracle Corporation, Hewlett-Packard Development Company, L.P, EMC Corporation and Hitachi Ltd.

Total value of the contracts in regards to the equipment (the head-end equipment) amounts to $835 million. The equipment is the property of IBM (International Business Machines Corporation), Oracle Corporation, Hewlett-Packard Development Company, L.P, EMC Corporation and Hitachi Ltd. Total value of the delivery contract between Sberbank of Russia and Oracle Corporation in regards to head-end equipment of Oracle Corporation amounts to 15.84 billion roubles.

Sberbank of Russia has set the initial price for delivery of head-end equipment (being the property of Hewlett-Packard Development Company and of the Itanium class) as well as for installation work and for adjustment work as $16.5 mln. The initial price includes extended support within the warranty period. Landis OOO (Limited Liability Company) have been pronounced the winner. Landis OOO (Limited Liability Company) is the legal personality of a distributor company known under the name of Treolan Company. Maximum amount of delivery of goods and services for Landis OOO (Limited Liability Company) can barely overbalance the amount of $16.25 mln.

In the analogous contest for head-end equipment OCS (OCS Distribution Company) have been pronounced the winner. The head-end equipment is the property of IBM (International Business Machines Corporation) and of the Power class. Total value of the contract is brought down from $408.18 to $403.3 mln.

In the contest for head-end equipment Marvis OOO (Limited Liability Company) has been pronounced the winner. The head-end equipment is the property of Oracle Corporation and of the Sparc class. Total value of the contract is brought down from 15.864 to 15.844 billion. Sberbank of Russia elaborates CNews in that case the price was set in roubles because the price-list of Oracle Corporation was compiled in the said currency. Sberbank of Russia also elaborates the price-list was compiled by a Russian branch of Oracle Corporation.

Marvis OOO (Limited Liability Company) has been pronounced the winner in a different contest by bringing down total value of the contract from $194.6 to $ 181.7 mln. The said contest has included the delivery of DSS (data storage system; production of Hewlett-Packard Development Company and High-End class), installation work, adjustment work, and provision of extended support within the warranty period.

OCS (OCS Distribution Company) has made the best tender in two analogous delivery contests. In that case the said contests include delivery of DSS (data storage system; production of EMC Corporation; Mid-range class and High-End class).

All in all, total value of the contract in regards of the 1^stclass remains invariant as $79.1 mln. And total value of the contract in regards of the 2^nd class has been brought down from $38.2 mln to $30.3 mln.

Marvis OOO (Limited Liability Company) has been pronounced the winner in the contest including delivery of DSS (data storage systems) of High-End class.The said DSS is the property of Hitachi Ltd. Total value of the said delivery contract remains invariant as $90.9 mln.

The situation remains unaltered in the contest including delivery of DSS (data storage systems) of Mid-range class where OCS Distribution Company has been pronounced the winner. The said DSS is the property of IBM (International Business Machines Corporation). Total value of the said delivery contract remains invariant as $33.9 mln.

At the end of the eight contests conclusion of an open contract for 2 years has been allowed. Within the said period Sberbank of Russia (the Russian branches included) has the opportunity of placing individual orders regarding fixed price purchases as required. The fixed price purchases concern servers and DSS (data storage systems).The representatives of Sberbank of Russia also emphasize that the bank is under no obligation to repurchase the hardware as far as the maximum amount of the hardware marked in the contract is concerned. Guarantee on said goods and services is 3 years as from the date of installation. Within the prescribed time limit the Contract Acceptor is to render extended technical support services to the bank.

The representatives of Sberbank of Russia said to CNews that, unlike the

mono-vendor strategy, use of analogous equipment of other manufacturers allows to minimize the risks of occurrences of malfunction of sensitive banking systems and processes. According to the representatives of Sberbank of Russia , sensitive banking systems and processes directly manipulate quality of the rendered services.

’Thus competitive environment remains invariant and we have an opportunity of minimization of acquisition expenses and maintenance expenses as far as the equipment is concerned,’ Sberbank of Russia insists.

The contests have been held as RFQ (Request for Quotation) with minimum capacity and among distributors possessing a diffusion right inside the territory of RF as far as the procured products are concerned.

Sberbank of Russia also insists distribution contracts allow to optimize the value of the goods by means of removal of extra links from supply chain as far as logistics services and customs clearance services are concerned. According to Sberbank of Russia, the said contracts also allow to provide the transparency of pricing model.

’That is also the reason for relative decline of lot value. Particularly large distributor profitability level is the explanation for the said decline,’ Sberbank of Russia elaborates.