Deutsche Telekom’s enterprise arm has won a multi-million euro deal to provide Daimler with a range of IT services.

T-Systems will operate the automotive company’s mainframes and upgrade associated hardware as part of the contract.

The two companies said in a statement that they also wanted to roll out “standard software” in order to make “the operation of IT applications in the production and distribution environments more efficient”.

T-Systems already connects over two million Daimler vehicles via Daimler’s proprietary connected car platform.

It will continue to operate "Mercedes me connect" services, including live traffic information, emergency call and internet radio, for the next generation of vehicles.

The company said it plans to upgrade the solution for existing Mercedes-Benz vehicles by retrofitting a Bluetooth adapter and downloading the corresponding app.

In total the deal is worth “hundreds of millions” of euros over an unspecified contract length, T-Systems said.

Reinhard Clemens, CEO of T-Systems, commented: “Together with Daimler, we are the driving force behind the digitisation of the automotive industry, modernising the associated platforms and making them more flexible.”

T-Systems saw revenues fall 3.1 percent to €2 billion in the second quarter, its most recent financial results.

Daimler sold 1.2 million Mercedes Benz in the first seven months of 2016, a year-on-year increase of 12 percent.

Almost half of vehicles on the roads, as well as 55 percent of new vehicles, will be connected in 2020, according to a July report from research house IHS.

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