IBM has won its largest federal cloud contract to date. Big Blue has signed on to be the primary cloud vendor for the U.S. Department of Interior (DOI).
The 10-year contract is worth approximately $1 billion, consisting of IBM's cloud computing technologies, services and hosting as the home of the National Park Service begins to deploy a new cloud infrastructure.
More specifically, elements of that infrastructure will include IBM’s SmartCloud for Government hosted at the IBM Federal Data Center, SmartCloud for Enterprise (SCE) commercial offerings, IBM AIX integrated cloud hosting services, and SAP Application Hosting.
The deal also plays off of products brought onboard by IBM's recent acquisition of on-demand cloud hosting firm SoftLayer. Following a deal said to be worth roughly $2 billion, SoftLayer operates both as a standalone unit but also closely in conjunction with IBM's SmartCloud unit.
When all is said and done, the Department of Interior is hoping to save roughly $100 million per year starting in 2016 through at least 2021 in infrastructure and IT costs by moving to this cloud model.
IBM has been on a bit of a roll when it comes to signing on U.S. federal agencies.
For example in May, IBM inked a 10-year, $123 million deal with the Department of Veterans Affairs. IBM was tasked with upgrading an approximately 50-year-old human resources system.
The new HR system will be built upon Oracle PeopleSoft human capital management apps and Monster Government Solutions along with IBM's own software products, including the InfoSphere big data platform and Tivoli integrated service management software.
Even though the VA and IBM said that this will require "the most basic changes" to the HR IT infrastructure, the project will be ongoing for the next decade. Some improvements are scheduled to launch within the next two years.