WPP signs whopping $1.25bn hybrid cloud deal with IBM

IBM to provide marketing firm with service delivery and technology platform in seven-year contract

Global marketing communications firm WPP has signed a whopping $1.25bn (£800m) seven-year deal with IBM, involving the creation of a hybrid cloud infrastructure.

IBM said it would provide a service delivery and technology platform that enables WPP to integrate its operations and improve productivity.

WPP, which employs nearly 175,000 people in over 3,000 offices, hopes that the hybrid cloud infrastructure will enable it to make better use of big data and analytics, deploy new products and services faster and improve collaboration across its multiple brands.

IBM, which has been a long-term partner of WPP's, will implement and manage the marketing communication firm's global technology platform.

"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," said Robin Dargue, who was appointed as WPP's first ever group CIO in February.

IBM has signed a number of major deals in the last year or so. Thomson Reuters signed a deal with IBM for the vendor to provide it with global IT support. Thomson Reuters wants to improve operational processes and internal services across its business, and it believes that the deal will enable its employees around the world to focus on faster innovation for its customers.

Meanwhile, German airline Lufthansa signed a £1.25bn outsourcing deal with IBM in November which will see the US company take over the airline's IT infrastructure services division and staff.

IBM claimed that the agreement would optimise the airline's IT processes to increase efficiency and therefore generate cost savings of €70m. The airline had earlier said that it would save "at least" €70m on IT infrastructure costs every year if it signed a deal with IBM. IBM had to reportedly fight off interest from HP and Atos to acquire Lufthansa's IT infrastructure business, which had been up for sale since the beginning of April.