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Nokia renews services pact with HP

Hewlett-Packard on Tuesday announced that Nokia has agreed to renew its existing service deal for a term of up to five years. Under the original agreement, signed in 2001, HP manages the Finnish phone maker's information technology infrastructure. Financial details of the new deal were not disclosed, but HP said billing will be based on actual service consumption by Nokia.

The earlier, three-year contract, worth $260 million, allowed HP to take over day-to-day management of Nokia's Microsoft Exchange and Lotus Notes systems, and its file and print operations at seven locations in Asia, Europe, and the United States. Nokia said this arrangement has resulted in cost savings higher than originally planned. The new deal will extend the service area to Nokia operations worldwide. HP said it will transform a "fixed IT environment into a flexible, scalable infrastructure" to reduce recurring costs.