Vodafone's IT cost-cutting on track

Britain's Vodafone has completed the core piece of its European data center consolidation as part of plans to slash about $190 million of the mobile operator's annual IT costs.

Data centers from Vodafone's northern European businesses have been integrated into a hub in Germany, and data centers from the mobile operator's southern European businesses have been centralized in Italy.

The regional consolidation is expected to deliver savings of 25 percent to 30 percent to Vodafone's $612 million annual European IT spending within two to three years. The final phase will see the U.K. consolidate its data centers within the next 12 to 18 months.

By consolidating its data centers, Vodafone said it will benefit from improved economies of scale in purchasing IT equipment, more efficient use of servers and reduced duplication.

Andy McCue of ZDNet UK reported from London.