IBM Inks Services Deal With Emirates Airline
07 June 2016 - 8:20PM
Dow Jones News
DUBAI—International Business Machines Corp. has signed a 10-year
information technology outsourcing deal worth about $300 million
with Dubai's Emirates Airline, the American technology giant said
Tuesday.
Under the deal, IBM is to provide IT infrastructure as a
service, allowing Emirates to more efficiently support passengers,
it said.
The services will allow Emirates to encrypt data almost in real
time, and to build new apps with functionality other developers can
tap into, the company said. IBM services will also help Emirates
improve business-management systems and streamline airport
operations, it said.
Emirates confirmed the deal, but declined to comment
further.
The deal represents a move for Emirates toward managed services,
outsourcing much of its IT infrastructure to IBM rather than
managing its systems in-house. Many companies have adopted the
managed-services model in recent years, in a bid to save money and
run more efficiently.
German carrier Deutsche Lufthansa AG outsourced its IT
infrastructure to IBM for seven years in a €1 billion deal in 2014.
Finnair, Finland's flag carrier, signed a cloud-services agreement
with IBM last September. And Etihad Airways, an Abu Dhabi
government-owned carrier, reached a 10-year, $700 million IT and
investment deal with IBM in October.
Emirates, one of the world's largest international carriers, has
long had a relationship with IBM, having used the company's systems
for ticketing and reservations for three decades.
The company has its base at Dubai's international airport, the
world's busiest for international travel.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
June 07, 2016 06:05 ET (10:05 GMT)
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