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IBM signs $1 b deal with Axa

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CIOL Bureau
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PARIS: IBM has said that it signed a six-year technology deal worth about $1 billion with France's biggest insurer, Axa - a move Axa expects will save it money.



IBM said it would start integrating Axa's server, mainframe and storage systems in an on-demand computing structure. Axa said it expects hundreds of millions of dollars in savings over the course of the deal.



Axa would retain full control of the information technology infrastructure and Axa personnel. IBM will help Axa consolidate its server, mainframe and storage infrastructure.



Axa will pay for the capacity used on a per unit basis, moving from a traditional fixed cost approach to a flexible, variable cost approach it expects will cut costs. The insurer has said it expects to continue cutting costs this year.



The deal includes training support for Axa staff. Axa will retain its own information technology strategy, strategic technology relationships, the development and maintenance of applications and databases and the management of its businesses' technology portfolios.



© Reuters

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