IBM concluded the IT transaction with Emirates airline for $85 million

2018: IBM implements a private cloud in Emirates for $85 million

In January, 2018 the American corporation IBM announced the conclusion of the next IT contract with Emirates Airline. The cost of the transaction is $85 million.

Under the terms of the agreement, within 10 years IBM will render to Emirates services in management of IT infrastructure and also will provide implementation of a private cloud service in the data centers of airline located in Dubai.

Use of a private cloud will allow the staff of Emirates to get remote access to corporate applications, including to a self-service portal to which IBM, for the organization of infrastructure by departments of airline operates.

IBM concluded the IT transaction with Emirates airline for $85 million

In the press release it is noted that due to this cooperation of Emirates will be able to concentrate the efforts on strategic initiatives until IBM controls IT systems of the company.

Within the new agreement Emirates will use failsafe, scalable and flexible services and also will be able to cut down operating expenses — the chief representative of IBM in the Middle East and Pakistan Amr Refaat says. — It is extremely important for expansion of global presence that the IT transactions Emirates were simplified and available to employees in any place and at any time. Exactly here our experience joins the game for accomplishment of this task.

The senior vice president for strategic IT services of Emirates Neetan Chopra says that the company cooperates with IBM long ago, and the new transaction allows to achieve the goal on "transformation of infrastructure of data in a cloud computing architecture and to obtaining advantages from flexibility and efficiency" IT infrastructure.

The contract signed in January of the 2018th became continuation of the IT transaction concluded by Emirates and IBM in 2016. Then it was talked of the amount of $300 million. After the company agreed about the new cooperation assuming that IBM will expand systems capabilities of service of passengers, will update business processes and optimizes work of Emirates at the airports.^[1]

2016: Emirates transferred to IBM service of IT infrastructure to $300 million

On June 7, 2016 the American corporation IBM announced the conclusion of the long-term IT agreement with airline from Arab Emirates Emirates Airline, Reuters reports.

Under the terms of the contract, IBM will render to the partner of service in information technology field for the purpose of improvement of support systems of passengers and expansion of their functionality.

In particular, IBM will assist in data encryption practically in real time with which Emirates Airline, and service of the systems allowing different program components to interact effectively with each other works.

IBM concluded the IT transaction with Emirates airline for $300 million

The agreement is signed for 10 years, during this term of Emirates Airline will pay IBM about $300 million^[2]

As notes The Wall Street Journal (WSJ), IBM decided to transfer by this transaction of Emirates Airline service of the most part of the IT infrastructure instead of controlling the information systems independently. Many airlines already passed to similar outsourcing in attempt to cut down expenses and to increase efficiency of the transactions, adds the edition.

It should be noted that in the list of clients of IBM there is one more large airline from the UAE — Etihad Airways. With it the American giant signed the agreement worth $700 million in October, 2015. The arrangement also concerns rendering IT services and service of IT infrastructure of Etihad Airways.

By the beginning of June, 2016 Emirates Airline is the fourth in number of the transported passengers airline in the world. For the financial year which came to the end on March 31, 2016 the profit of carrier was $1.93 billion, having increased by 56% in comparison with previous year.

According to WSJ, cooperation between Emirates Airline and IBM began for a long time: within 30 years the airline uses the developed IBM systems for sale and armoring of tickets.^[3]

Notes