IBM seals $908m services contract

Airline contract marks Big Blue's biggest-ever services deal...

IBM has signed a $908m seven-year partnership services deal with Air Canada to develop ebusiness and customer service applications for the airline industry. The deal is believed to be the biggest services contract in IBM's history, and is expected to cut $130m from Air Canada's internal IT costs during the period. The companies are also looking to earn new revenue from jointly developed offerings, with IBM investing in various Air Canada venture capital and technology projects.