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IBM takes New York City to the cloud
City commits to program to move IT infrastructure to a utility style model that could save $100 million
Jason Meyers
February 2, 2011
1 Min Read
The City of New York has tapped IBM to provide cloud-based technology for CITIServ, the city’s IT infrastructure upgrade program.
The overall goal of the program is to consolidate data centers in use by 50 city agencies and migrate them to a cloud environment. According to IBM, the overhaul will streamline the delivery of city services and reduce energy consumption to the tune of a $100 million savings over five years. IBM was awarded the first phase of the project, covering the initial 14 agencies.
A report in Crain’s New York Business puts the value of the IBM contract at $8 million, and quotes Michael O’Boyle, IBM’s account director for the city, on the efficiencies and security of the program.
“This reduces duplicity, it reduces the city's carbon footprint,” Mr. O'Boyle said. “Instead of an agency having to worry about making \[IT\] decisions themselves, they can focus their attention on the business value they provide.”
If the implementation is a success and the City of New York realizes the cost savings IBM is estimating—and does so without sacrificing availability or security—a migration of this size could go a long way in convincing other government agencies that the cloud is a secure and efficient way for their IT infrastructure to go.
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