IBM lands $500 million private cloud deal with The Hartford

The insurance giant will build its private cloud infrastructure on IBM's PureFlex System and use a bevy of services.

IBM on Wednesday said it landed a $500 million six-year private cloud deal with insurance giant The Hartford.

Under the terms of the deal, IBM will work with The Hartford to move to a cloud infrastructure and integrate customer-facing systems with financial systems and analytics tools. The agreement also includes a joint innovation committee with the two companies that will use IBM's intellectual property and The Hartford's insurance industry knowhow.

Big Blue positioned the deal as a cloud win, but SoftLayer, its infrastructure as a service unit, isn't involved. The deal with The Hartford highlights how IBM's definition of the cloud includes software as well as the hardware used to deliver services.

In this case, The Hartford's infrastructure will run on IBM's PureFlex System. The $500 million deal also includes services that revolve around mainframe support, backup, and storage.

Insurers have been spending heavily on infrastructure to better deliver services and crunch data. For instance, AIG, a big IBM customer, has retooled its data infrastructure too.

IBM has been touting cloud wins and announced customers including Coca-Cola Amatil, Novitex, Gamestop, and Pitney Bowes.