Data Center Consolidation for ABN, Barclays

European banking giants Barclays and ABN Amro will consolidate their data center networks if the deal is finalized, according to Silicon.com, which says the companies will seek cost savings of 1.65 billion Euros (about $2.24 billion US) by 2010.

The data center networks of the two banks' reflect their geographic focus, with the bulk of Barclays' facilities in the UK while ABN Amro's data centers are in the Netherlands. ABN has outsourced much of its IT to India-based providers, while Barclays has outsourced a significantly smaller part of its operations. Analysts said that the geographic issues and outsourcing decisions will be key decision points in any data center consolidation.

As part of the deal, ABN's U.S. retail bank LaSalle will be sold to to Bank of America (BAC) for $21 billion. Early indications are that the consolidation of LaSalle into BofA will likely focus on headquarters and marketing staff rather than IT.