IBM signs US$9.7mn agreement with Fonafe to provide cloud computing

- Thursday, February 24, 2011

IBM signs US$9.7mn agreement with Fonafe to provide cloud computing

IBM (NYSE: IBM) and Peru's fund for financing state business, Fonafe, have signed a five-year service agreement worth US$9.7mn to bring cloud computing to government services in the country, according to a press release from Fonafe.

The agreement will aim to centralize government services operations, and Fonafe estimates it will save the Peruvian government US$4.2mn over the span of the agreement.

Through the partnership, IBM will develop and manage a private cloud-computing technology infrastructure, which will centralize IT operations for 10 government-owned companies providing power, postal and transportation services, among others.

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According to Fonafe, IBM will consolidate 10 data centers, virtualize more than 130 data servers and centralize base administration for some 40 applications. In addition, internet, email and social networking systems such as chat programs will be centralized and delivered to more than 3,000 users through cloud computing technology.

Fonafe executive director Mario Gonzales said these solutions will make government companies more competitive, while also allowing them to cut down on operating costs through a shared service center. Power consumption will also be streamlined.

Government-owned companies participating in the project include Electroperu, Hidrandina, Electrocentro, Electro Noroeste, Corpac, Serpost, Enapu, Fondo Mivivienda and Fonafe. Eventually, other public sector institutions are expected to utilize the shared services center.

This project is the first of many in development as part of an initiative for government companies in Peru to increase their productivity and competitiveness.

Fonafe is a holding group in Peru made up of 33 state-run companies with assets of more than US$15.8bn, according to the group.