IBM Wins $575M Morgan Stanley Deal

Morgan Stanley extends its agreement with IBM to include an on-demand computing infrastructure

April 27, 2004

2 Min Read

ARMONK, N.Y. -- Extending a previous IT services agreement, Morgan Stanley selected IBM to implement a technology infrastructure that automatically draws computing power as needed from a shared pool of data center resources, the companies announced today. The approximately $575 million contract will facilitate Morgan Stanley's drive toward realizing an on demand computing infrastructure for its Individual Investor Group and Discover Financial Services. Once Morgan Stanley moves to the new infrastructure, it will only pay for the back-end computing power it uses, allowing it to potentially realize millions of dollars in savings.

IBM will also provide help desk and desk side support as a managed service to approximately 20,000 users in Morgan Stanley's Individual Investor Group.

On Demand Services

The migration of Morgan Stanley's Individual Investor Group's mainframe processing to a shared infrastructure at an IBM on demand data center is a significant event in the evolution of IBM's on demand strategy. IBM's Universal Management Infrastructure will provide Morgan Stanley with significant benefits including:

Resources on demand - processing power, storage capacity and networking bandwidth will be supplied automatically, dialed up and down as needs dictate.

Variable pricing - via a sophisticated metering system that allows Morgan Stanley to pay only for the computing power it uses.

"Technology lies at the heart of modern business, and that's why it's so important for Morgan Stanley to have a hand-in-glove working relationship with a technology provider that intimately understands how our business works," said John Schaefer, president of Morgan Stanley's Individual Investor Group. "IBM's technology and services leadership, business-savvy and worldwide reach have made for a long, strong, and positive relationship with us."

"During our long relationship with Morgan Stanley, IBM has watched at close range the company's relentless focus on using technology to better serve its customers," said Doug Elix, senior vice president and group executive, IBM Global Services. "Going forward, we are committed to providing Morgan Stanley with the kind of IT infrastructure that increases performance, resilience and flexibility while freeing up resources that can be deployed to obtain greater business advantage."

IBM Corp.

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