IBM wins largest federal cloud contract to date: U.S. Dept. of Interior

IBM wins largest federal cloud contract to date: U.S. Dept. of Interior

Summary: The home of the National Park Service is making the jump to the cloud with help from IBM's SoftLayer unit.


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.

Topics: Cloud, Government US, IBM, Enterprise 2.0

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  • Hope it goes better for the DOI

    then it did for Pennsylvania
    William Farrel
    • This is IBM, of course it will be a huge train wreck. But by then the $$$

      will be gone. And we'll have to spend more to clean it up and have someone else do it.
      Johnny Vegas
      • Johnny Vegas....I hate to tell you this but you and Willie Farret

        are two pees in a pod....with nothing up stairs.

        End Of Story
        Over and Out
        • Yet, Johnny and Willie had something of substance to say, while you came up

          with nothing other than an insult.

          So, of the 3 of you, you appear to be the one coming up with a blank "upstairs".
          • any chance are you one of the 4,000

            Quoted in the Zdnet article " Cisco Q4 strong; CEO Chambers confident, but 4,000 job cuts loom " today that are out the door because the Company made lots of money?

            Loverock Davidson has a good recruiter if you need one.

            End Of Story
            Over and Out
          • Nope! Wrong! Never at Cisco, and not with any company...

            and I've been self-employed for over 15 years.

            I just like speaking my mind, especially when I meet such nonsense as you and others like you continue posting at sites such as this one.

            If anything, I'd question your employment and wonder what type of company would hire someone like you.
  • IBM and the Government

    1 Word: Queensland
    Da Womby
  • Let's evaluate the underlying issues with contracts in general...

    I have been in the IT business for the last 30 years. I have not seen a single procurement, government or otherwise that has not had holes that once awarded created wrinkles in delivery or expectations from either party. Before some judge whether or not IBM's contract with DOI will be a flop or a success perhaps we should wait for delivery to begin. I am not saying that IBM and others do not have flaws or issues with delivery. But let's be perfectly upfront and honest; customers say one thing and expect another on many occasions because they hold a big stick and have many, many companies to choose from.
  • U.S. Department of Interior

    they have been hacked is what was on tv and they have been hacked again and again and again and the cloud has all so been kacked again and again and again see the news and you will see what i am saying