US Edition 
WPP agrees £800m cloud deal with IBM
Seven-year agreement will allow WPP to bring together the operations of more than 300 agencies it has bought over the past decade
WPP, the world’s largest advertising agency, has agreed a $1.25bn (£800m) cloud-computing deal with US technology company IBM.
The seven-year agreement will allow the British marketing firm, led by Sir Martin Sorrell, to bring together the operations of more than 300 agencies it has bought up over the past decade.
IBM will use hybrid clouds, which mix private, on-site computer systems for which it has long been known with newer public-facing internet and mobile systems. This allows clients to move internal systems to the cloud at their own pace.
“As the world’s largest communications group, we are seeking to exploit IBM’s cloud computing expertise to allow us to innovate and add value to both the service and the product we deliver to clients across 111 countries,” said Robin Dargue, WPP’s chief information officer.
It is the latest cloud contract for IBM, which has been trying to position itself at the forefront of the latest technology trends in a bid to reverse falling profits.
On Monday, IBM unveiled a $2bn,10-year deal to provide computer infrastructure services to Dutch bank ABN Amro.
Last month, Lufthansa agreed a $1.25bn, seven-year contract for IBM to take over the German airline’s information technology operations and staff.