01 Sep 2005
On September 1, IBM announced a major services deal with ABN AMRO -- a 1.5 billion EURO, five-year IT services contract that is unique in the sheer scope of automation it will bring to a global network of data centers.
As part of the deal, IBM will create an Innovation Center with the client, where IBM scientists will develop highly advanced IT services to support new financial products. This contract is indicative of the evolving nature of SO, where IBM is succeeding because the application of high-value offerings, such as it's advanced automation solutions (UMI), and advanced science.
It also further extends the trend of financial sector customers outsourcing their IT to IBM, with a recent list that includes Equifax, Morgan Stanley, ING, Axa, Viewpoint, and Certegy.
The partnership with ABN AMRO shows the reasons why IBM is succeeding in serving outsourcing customers on a global scale:
Why is UMI important?
UMI is an automation and virtualization technology. Based on open standards, UMI automatically brings computing systems online and takes them offline to meet ever-changing demand, while allowing customers to pay only for the computing power they use. The benefits are substantial, as UMI helps customers drastically reduce costs.
For example, in a traditional IT environment, separate servers are dedicated to handle separate tasks -– payroll, CRM, etc. This results in customers having to maintain large amounts of unused capacity. With UMI, resources are drawn on demand from a common pool of computing assets, substantially reducing the size of the IT infrastructure needed.
UMI also enables customers to tackle new business opportunities, improve business resiliency, and integrate new systems as a result of mergers/acquisitions.
"This initiative with ABN-AMRO is important because it demonstrates the evolving nature of the outsourcing environment," said Mike Daniels, IBM's Senior Vice President for Information Technology Services. "Our clients are looking for partners that can do more than just manage their systems more cost effectively -- they are looking for massive optimization in business and IT performance. And IBM is applying advance science and outsourcing solutions such as UMI to help our clients innovate."