JUL 25, 2014 9:17am ET

Related Links

SAP Chief Paying a Premium for Concur to Catch Up on Cloud Tech
September 22, 2014
Cloud Now Considered a Growth Driver for Banks and Insurers
September 10, 2014
iCloud Hack Underscores Risk to Banks When Employees Use Cloud
September 2, 2014

Web Seminars

Essential Guide to Using Data Virtualization for Big Data Analytics
September 24, 2014
Integrating Relational Database Data with NoSQL Database Data
October 23, 2014

IBM Wins Deal to Supply Cloud Computing to California Agencies

Print
Reprints
Email

(Bloomberg) -- International Business Machines Corp. will supply cloud services to the government of California, letting more than 400 state and local agencies save money by pooling their computing resources.

IBM will store data and software on remote servers in a service called CalCloud, available to all state and local government bodies, the company said today in a statement. The arrangement lets agencies pay only for the computing workload they need.

IBM is counting on cloud computing for growth after nine straight quarters of declining revenue, dragged down by weak demand for hardware and falling sales in markets like China. Cloud technology has been a conundrum for the Armonk, New York- based company because it can reduce demand for hardware, since companies rent computing power rather than assembling their own data centers.

The company competes for cloud-computing clients with Oracle Corp., Microsoft Corp. and Amazon.com Inc., to which IBM lost a $600 million contract with the U.S. Central Intelligence Agency last year.

Because government customers have additional data-security needs, they’ve been slower than corporations in moving to the cloud because it means surrendering some control over managing the technology. IBM said it designed CalCloud to comply with the requirements of the Internal Revenue Service, Social Security and the Health Insurance Portability and Accountability Act.

“CalCloud is an important step towards providing faster and more cost-effective IT services to California state departments and ultimately to the citizens of California,” Marybel Batjer, secretary of the Government Operations Agency, said in the statement.

Get access to this article and thousands more...

All Information Management articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to:

  • Full access to information-management.com including all searchable archived content
  • Exclusive E-Newsletters delivering the latest headlines to your inbox
  • Access to White Papers, Web Seminars, and Blog Discussions
  • Discounts to upcoming conferences & events
  • Uninterrupted access to all sponsored content, and MORE!

Already Registered?

Filed under:

Advertisement

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Twitter
Facebook
LinkedIn
Login  |  My Account  |  White Papers  |  Web Seminars  |  Events |  Newsletters |  eBooks
FOLLOW US
Please note you must now log in with your email address and password.