Significantly, the announcement is the third in a series of agreements between Shell Oil or its parent company Royal Dutch/Shell, and IBM this year. It continues IBM's push to help companies integrate wireless technology into their existing e-business infrastructure and extend their products and business processes to non-traditional computing devices. In January, Shell deployed seismic research applications onto an IBM Linux supercluster based on the IBM eServer x330, and in July, Shell named IBM single-source provider for its five regional MegaCentre data processing facilities.

The announcement expands this relationship from supply chain and enterprise into the retail network arena for the first time. IBM Global Services wireless teams will develop an end-to-end infrastructure and support for Internet-based systems. These systems will enable Shell to better manage the operating costs of its retail operations. The infrastructure will also support advanced customer applications at a future date.

Eric Leon, general manager, IBM Global Chemical and Petroleum Industry, said: "Just as Shell management works to remove constraints on the flow of petroleum from the ground to the gas pump, IBM strives to free the flow of information, liberating Shell assets and empowering management to take strategic actions on a grass-roots local retail level. This is a powerful management opportunity for Shell to both reduce costs and increase business."

The initial pilot will be conducted among a set of representative retail stations. The pilot will determine how future technology will be rolled out in several major regions within Shell's global retail business. IBM will deploy technology from Silicon Energy, Echelon, CP Technology company, and R&D Technology Solutionz, among others. This technology will be fundamentally grounded in an open and extensible architecture assuring scalability and compatibility.