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December 3, 2014

IBM in $1.25bn cloud deal with WPP

Third in a series of billion dollar plus deals for IBM’s cloud-computing offerings.

By CBR Staff Writer

WPP, world’s largest advertising agency has signed a $1.25bn deal with IBM to provide to run WPP operations in the cloud.

The latest seven year deal, which is the latest in a string of new partnership for IBM’s cloud-computing offerings, will enable IBM to run WPP operations within global hybrid cloud infrastructure.

WPP Group CIO Robin Dargue said: "As the world’s largest communications group, we are seeking to exploit IBM’s cloud computing expertise to allow us to innovate and add value to both the service and the product we deliver to clients across 111 countries."

The deal involves provision of a service delivery and technology platform enabling WPP to integrate its operations together with better productivity.

With the new hybrid cloud infrastructure WPP will be able to spread out the use of big data and analytics to help in decision making and intensifying the creative process, in addition to improving its potential to rapidly roll out new products and services.

WPP will also be able to merge the operations of over 300 agencies it has acquired over the past ten years.

The latest deal follows the recent 10-year, multibillion-dollar cloud services contract with Dutch bank ABN AMRO and last month’s IT infrastructure contract with Lufthansa.

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IBM Global Technology Services senior vice president Erich Clementi said: "This announcement is a significant milestone in the deployment of enterprise cloud and extends IBM’s position as the premier global cloud platform.

"Our secure, open enterprise cloud platform will enable WPP to quickly deliver new innovations to their customers."

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