Cloud Native/NFV

Lloyds Inks £1.3B Cloud Deal With IBM

Lloyds Banking Group signed a £1.3 billion ($1.66 billion) deal for IBM to provide private cloud, the cloud provider said.

The ten-year agreement has IBM providing dedicated private cloud in both its own and Lloyds' data centers in the UK, IBM said Thursday. IBM will manage application migration to the new private cloud. The agreement extends Lloyds' existing cloud technologies.

Lloyds has more than 3 million customers, and operates the UK's largest digital bank, with 12.5 million online customers and 8 million mobile users, IBM says. The deal "rival[s] the size and scope of some of IBM's largest cloud agreements," IBM says.

Other financial institutions are also using IBM Cloud, including Sidian Bank in Kenya, DSK Bank in Bulgaria, India's Ujjivan Financial Services and Westpac New Zealand, IBM says.

The news about Lloyds comes a day after CNBC reported that Facebook is moving its WhatsApp service off the IBM cloud to its own data centers -- taking some of the luster from IBM Cloud. (See the CNBC article here: Facebook is planning to move WhatsApp off IBM's public cloud, source says. Our take: Is Facebook Moving WhatsApp off IBM?.)

IBM introduced developer tools in March to push its cloud service deeper into financial service and banking. (See IBM Cloud Targets Financial Services Developers .)

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Also that month, IBM announced a deal to move insurer Chubb's mainframe development and testing to the cloud. (See Mainframe Cloud? That's Nuts!.)

IBM isn't alone in attracting financial services customers; the Royal Bank of Scotland is using Dell EMC to move its infrastructure to the cloud. (See Royal Bank of Scotland Banks On Cloud .)

And Banco Santander of Spain said in October it is running more than 1,000 nodes on OpenStack. (See OpenStack: Small Pond, but the Big Fish Love It.)

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Friend me on Facebook Editor, Enterprise Cloud News

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[email protected] 6/14/2017 | 11:47:58 AM
Re: contract Yes, but I think we all know even those terms are probably still negotiable. Cloud will command a higher price tag initially but in the end, the price will come down as competition grows and the technology matures. I am sure that there are clauses in the contract to address the inevitable commoditization of cloud.
Ariella 6/13/2017 | 2:11:43 PM
Re: contract @maryam Most likely it was sold in that way in part to lock in a rate and know the costs will reamin steady for that service for the next decade. I understand the appeal of that.
[email protected] 6/13/2017 | 2:07:28 PM
Re: contract It does, but I would expect that they also got some benefits on pricing etc. to even consider that term!
Ariella 6/12/2017 | 10:41:18 AM
Re: contract @maryam I'm sure its lawyers made sure it wasn't locked into something that it could never get out of if the agreement proved detrimental to its future interests. Even so, it does show quite a bit of faith to even put down the 10 year possibility.
[email protected] 6/12/2017 | 10:13:48 AM
Re: contract For contracts of those length terms, there is typically a renewals process annually etc. it most likely sounds better that it is and it definitely has an out clause for any failures and compromises I can guarantee the bank did not make itself vulnerable.
Ariella 6/12/2017 | 8:24:13 AM
Re: contract @PhilBritt So much can happen in 10 years that it is hard to even have a clear picture of what the world situation will be then. At the rate of current change, even 5 years is a pretty long commitment.
Phil_Britt 6/12/2017 | 3:11:48 AM
Re: contract Though it's a 10-year contract, I'm sure its full of SLAs and other clauses that will enable Lloyds to get out in much less than one decade.
Mitch Wagner 6/9/2017 | 4:52:30 PM
Re: contract Cloud infrastructure is an important commitment and requires a big time committment as well. 
Ariella 6/9/2017 | 4:31:39 PM
contract When I saw that item in the news I was really surprised that there  are still businesses today that will commit to a 10 year contract. 
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