Deutsche Bank Signs $2.5B Services Contract With IBM

IBM has signed what it says is its biggest services deal within Germany--a $2.5 billion, 10-year contract to provide a range of services for Frankfurt-based Deutsche Bank.

The company is taking over operation and management of Deutsche Bank's main data centers and satellite-IT facilities in locations across Europe, including Poland, Portugal, Switzerland, and Spain. IBM will also build a state-of-the-art data center in Germany's Rhine-Main region from which it will manage parts of Deutsche Bank's operations.

Deutsche Bank says buying computing power under IBM's variable pricing will save it $1 billion over 10 years. IBM recently unveiled its computing-as-utility model under an initiative called E-Business On Demand.

A number of large financial-services companies are turning to IT outsourcing as a way to trim costs. In fact, IBM says it's negotiating with J.P. Morgan Chase & Co. to secure a comprehensive outsourcing deal that could be worth up to $5 billion.