Deutsche Bank has outsourced a large part of its IT infrastructure to Hewlett-Packardin a deal that will help it cut costs, besides injecting agility into its operation. It is a multi-billion dollar deal spanning 10-years, according to the company’s statement.
The deal paves the way for the bank to cut back on investment in hardware and move most of its IT applications onto the cloud.
Under the agreement, the financial firm will use use HP’s Helion private cloud to buy HP’s on-demand data center services, including storage, platform and hosting. Deutsche Bank will however retain activities such as IT architecture, application development and information security.
The bank has claimed that the deal will also help it upgrade some of its IT applications.
“Having a more modern and agile technology platform will further improve the bank’s ability to launch new products and services and lay the foundation for the next phase of its digital strategy,” stated Henry Ritchotte, Chief Operating Officer of Deutsche Bank.
It seems HP was waiting for a deal of this magnitude to bolster its Enterprise Services division, which is struggling to compete with IBM, whose SoftLayer platform has seen a lot of demand of late. Amazon is also vying hard to win clients for its cloud service.
Launched in May last year, HP’s Helion is based on the open-source cloud operating system OpenStack.
Deutsche Bank had already signed a similar but smaller deal with IBM, but that was limited to the bank’s operations in Germany.
Across the world, large financial firms are increasingly restructuring their operations as pressure rises on the financial sector to cut costs while remaining agile.