Atos Origin to focus on cloud computing with Siemens SIS buy

Siemens and Atos Origin are giving IBM something to be concerned about.

The pair are getting cosy to create a European IT services company in a deal worth £720 million.

Under the terms of the deal Atos will buy Siemens Information Solutions, the services arm of Siemens, and Siemens will get a 15 percent stake in Atos, making it the  fifth largest IT services company in the world and the second largest in Europe, after IBM.

Atos Origin chief executive Thierry Breton said: “We will be number two in Europe for managed services, and we are committed to becoming the leader in cloud computing in Europe.

“IBM will become our main competitor.”

Siemens IT Solutions (SIS) hasn’t been very successful over the past two years and made a cumulative loss of £1.7 billion. The new partnership hopes to absorb that and turn a profit starting with a seven year Siemens contract.

After that, Atos hopes to reap revenue benefits from the scale of the company and the move to cloud computing. Breton said Atos has 30 large data centres, and will use them to take a major role in cloud computing.

“We are committed to becoming the leader in cloud computing in Europe,”  he added