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HomeEconomyEtihad inks $700m tech deal with IBM

Etihad inks $700m tech deal with IBM

|By TAP Staff| Etihad Airways and IBM announced a ten-year technology services agreement worth approximately US$700 million.

The transformational agreement, one of the most important strategic collaborations by Etihad Airways, will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners. Etihad Airways, one of the fastest-growing airlines in the world, carried 14.8 million passengers in 2014, and serves 113 passenger and cargo destinations.

IBM will deliver a range of secure and efficient technology services, allowing Etihad Airways and its partners to transform their IT infrastructure into global, flexible and agile cloud-based platforms to better serve their guests and employees.

The agreement includes plans for the creation of a new cloud data center in Abu Dhabi. The center, to be developed and operated by IBM, will be one of the most sophisticated technology facilities in the Middle East.

IBM was selected due its global reach, its experience and alignment with Etihad Airways’ technology and innovation strategy of deploying cloud-first initiatives to simplify its technology systems, while offering greater capabilities for lower operational costs. The cloud, analytics, mobile, security and cognitive technologies will drive increased efficiencies and effectiveness for all Etihad Airways businesses, as well as for the Etihad Airways Partners..

IBM and Etihad Airways will create a joint technology and innovation council in Abu Dhabi to develop more personalised travel solutions using IBM’s global research capabilities and the airline’s industry expertise. The council will focus on value creation for Etihad Airways and its guests, as well as bringing technological innovation and benefits to Abu Dhabi and its people.

Etihad Airways’ current data center, IT infrastructure, applications and security operations will be migrated to the new data center in Abu Dhabi, and disaster recovery will be managed at an IBM Cloud data center in Europe. This approach will allow the airline to scale and manage its IT resources more efficiently, while ensuring business continuity.

As part of the agreement, around 100 Etihad Airways information technology employees will transition to IBM, where they will have access to further IT skills development opportunities. IBM will manage the entire data center operation, including individual infrastructure services and IT helpdesk for Etihad Airways.

The collaboration provides a global framework for technology service delivery for Etihad Airways and its Etihad Airways Partner airlines, including Alitalia, airberlin, Jet Airways, Air Serbia, Air Seychelles and Etihad Regional.