IBM Global Services and JPMorgan Chase are coming into the second year of their landmark IT outsourcing agreement. The seven-year, $5 billion deal is important because of its size and because of the variable-pricing benefits it will bring to the second-largest financial services firm in the United States. Effectively, JPMorgan Chase is the largest beta customer for IBM's new e-business on demand principles and technologies. "We've done a lot of deals before, but I don't think we've ever done a deal this large and this complex," says Patrick Sweeney, who helped win the contract as IBM Global Services financial services general manager. He says 2004 is the year that IBM and JPMorgan Chase must execute on the integration strategy, having transferred technology assets and people in the previous year. Besides dealing with data centre and network upgrades and consolidation, IBM is helping JPMorgan Chase rearchitect is infrastructure so that it will better support the business. Sweeney says part of this rearchitecting process is putting in place the on demand toolset that will help control change management, production control, monitoring, and security; basically, "all the things that are absolutely necessary to execute against an on demand type model," says Sweeney. The on demand framework allows JPMorgan Chase to pay only for its used resources such as CPU hours, amounts of storage, number of end users, and bandwidth consumed. JPMorgan Chase managing director Jim Moreno says the method of metering those resources will continue to evolve. Copyright 2004 INFORMATION, INC. |
