IBM inks $180 million cloud deal with energy company Columbia Pipeline

As part of the deal, IBM will move CPG's entire IT infrastructure and business applications into a private cloud in IBM's Columbus, Ohio data center.

IBM has inked a $180 million cloud deal with Columbia Pipeline Group (CPG).

Based in Houston, Texas, the energy company operates roughly 15,000 miles of natural gas pipelines across North America.

As part of the deal, IBM will move CPG's entire IT infrastructure and business applications into a private cloud in IBM's Columbus, Ohio data center. IBM will manage the infrastructure -- which includes human resources, billing and finance, and pipeline operations -- for a minimum of five years.

Bob Skaggs, CEO for CPG, said the agreement will help fuel his company's rapid expansion goals. CPG recently separated from energy infrastructure company NiSource Inc. to launch as a standalone, publicly traded company. CPG hopes to increase its asset investments to $13.5 billion by 2020.

For IBM, the deal certainly can be counted as a cloud win, but it's unclear how much the new contract will add to IBM's cloud revenue. IBM was the long-time technology supplier for NiSource, so in some ways the CPG contract could be seen as replacement revenue.

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