IBM creates a cloud for advertizing holding WPP for $1.25 billion

On December 2, 2014 IBM announced the conclusion of the seven-year IT agreement with one of the world's largest advertizing holdings WPP Group. The cost of the transaction will be about $1.25 billion^[1]

For this money IBM will create for the partner hybrid cloud infrastructure by means of which WPP will be able to connect together activity more than 300 child advertizing agencies purchased by holding for the last decade. In particular, by means of the partner the British conglomerate is going to expand use of tools for work with Big Data and analytics, to improve opportunities for start of new products and services, to strengthen positions in the markets of digital and mobile technologies and also to continue building of effective horizontal communications and partnership with numerous brands worldwide.

"Being the world's largest communication group we want to use the high level of examination of IBM in the field of cloud computing to develop innovations and to increase the value of our products and services which we offer clients in 111 countries of the world", – the CIO of WPP Group Robin Dargue noted.

As the general strategic outsourcing manager of IBM in Europe Bart Van den Daele reported Reuters agency, in connection with crisis in the eurozone the number of large contracts considerably decreased, however clients are ready to new agreements.^[2]

In the fourth quarter 2014 IBM concluded in Europe several large IT transactions for the total amount more than $4 billion.

In the fourth quarter 2014 IBM concluded in Europe several big IT transactions for the total amount exceeding $4 billion Bart van den Dale say that the corporation does not intend to be satisfied with what has already been achieved. How large will be the following contracts, the representative of IBM did not specify.

He only added that the general trend for the European clients is their readiness for global transition to cloud computing, however work with them means a number of features. One of them concerns the requirement of the local companies about that their data were stored in the data centers located in the territory of Europe. With respect thereto IBM already started seven DPCs in Great Britain, Holland, France and Germany.

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