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T-Systems will continue to be Daimler's biggest IT partner (Photo: Deutsche Telekom)

T-Systems will continue to manage Daimler's mainframe computers as well as the carmaker's connected-vehicle applications, the German IT service provider said.

Under a new agreement, T-Systems, the business services arm of Germany's Deutsche Telekom, will continue to run Daimler's connected-car platform, which is known as the "Daimler Vehicle Backend.

"Together with Daimler, we're are pushing the digitization of the auto industry, we're modernizing the relevant platforms and are increasing their flexibility," said T-Systems CEO Reinhard Clemens.

T-Systems said it will deploy the latest hardware and will increasingly use standard software to make Daimler's production and sales and marketing IT more efficient.

The service provider will also operate Daimler's Connect Me services platform for future generations of Mercedes-Benz vehicles. Those services include real-time traffic information, security functions such as emergency calling, and infotainment apps such as internet radio and hotel and parking searches.