IBM Gets $1.3 Billion Cloud and Managed Services Deal in European Finance Sector

In a $1.3 billion mega deal that entrenches IBM in the cloud infrastructure and managed services space in Europe, the company has signed an agreement to build and manage IT infrastructure for several major financial institutions.

IBM will take over the project from Associated Dexia Technology Solutions (ADTS) and will subsequently seize a controlling share in that company, rebranding it as an IBM company named Innovative Solutions for Finance (ISFF). The deal has IBM implementing cloud infrastructure for the finance companies while expanding ISFF services into new markets with the end goal of optimizing the efficiency of IT management.

Just yesterday, IBM announced an expansion of its industry-specific cloud consulting services, moving away from the “one-size-fits-all” approach. The company is offering industry-tailored private cloud solutions as a managed service through its IBM Global Business Services branch, with offerings tailored toward the banking, insurance, retail, telecom and energy vertical markets.

The financial services sector makes an ideal candidate for IBM’s recent cloud initiatives, and a company survey shows that one-third of decision makers in the market understand the value of cloud computing as an enabler of business innovation. The new European cloud-based infrastructure will offer financial institutions fast access to services as well as enhancing risk management, reducing operating costs and improving service delivery. The billion-dollar deal is comprised of several sourcing contracts spanning seven years.

"Our integrated transformational approach, the introduction of new and innovative technologies and solutions, like cloud and analytics and our expertise in the financial sector will enable these customers to differentiate themselves in an accelerated way versus their competitors in their respective markets" said Bart van den Daele, general manager strategic outsourcing, IBM Europe.

The controlling interest in Dexia is significant for IBM’s play in the financial services market, since the company has served major companies including Belfius Bank, Belfius Insurance and Banque Internationale a Luxembourg.