IBM wins $1 billion federal cloud computing deal

International Business Machines Corp. has been awarded a 10-year deal worth $1 billion to help the U.S. Department of the Interior transform its information technology systems to a cloud computing model.

As part of the indefinite delivery/indefinite quantity contract, the department may use IBM cloud computing technologies, services and hosting as the foundation of their next generation infrastructure, Armonk-based IBM(NYSE: IBM) said.

The Interior Department will use IBM’s expertise in data storage, secure file transfer, virtual machines, database, web hosting, development testing and SAP Application Hosting. The department also will be able to tap IBM's Smart Cloud for Government hosted at the IBM Federal Data Center, the Smart Cloud for Enterprise commercial offerings and the IBM AIX Cloud.

Other U.S. government agencies can also gain access to IBM’s cloud services via the Interior Department’s Foundation Cloud Hosting Services vehicle. The vehicle also allows request for quotes/task orders to be issued on behalf of other government customers including both civilian agencies and the Department of Defense.

The Interior Department is the steward of 20 percent of the nation's land. On these 500 million acres are 397 units of the national park system, 556 national wildlife refuges, 21 national conservation areas and 16 national monuments. In addition, the department is the largest supplier and manager of water in 17 states, overseeing 476 dams and 348 reservoirs. It also manages the land, subsurface rights and offshore areas that produce 24 percent of the nation's energy; and maintains relationships with 566 federally recognized Native American tribes with a population of 1.7 million people.

The Interior Department’s shift to a cloud computing model is part of efforts to save $100 million a year from 2016 to 2021 and then use those savings to fund investments in new business capabilities and applications.

By: New York Business Journal
Link: http://www.bizjournals.com/newyork/news/2013/08/14/ibm-wins-1-billion-federal-cloud.html