Etihad Airways, IBM Sign Landmark $700 Million IT Deal
15.10.2015 Aviation
Etihad Airways and IBM announced Tuesday a ten-year technology services agreement worth approximately US$700 million. This will allow the airline to enhance guest experience, develop world-class infrastructure and security, and improve efficiency.
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.
James Hogan, Etihad Airways' President and Chief Executive Officer, said: "This is a long-term, strategic partnership which will allow Etihad Airways and its partners to harness the latest technologies as we deliver our award-winning services. This is a game-changing agreement for Etihad Airways, for our partners and employees, and for Abu Dhabi."
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.
Through IBM's mobile solutions, developed under the Apple-IBM alliance, the airline will provide enhanced mobile capabilities to its employees and guests. Other solutions will enable airport operations to run more efficiently, which will improve the guest experience as a result of an enhanced end-to-end process.
IBM and Etihad Airways will create a joint technology and innovation council in Abu Dhabi to develop more personalized 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.
The agreement was signed at the end of September 2015.
Etihad Airways began operations in 2003, and in 2014 carried 14.8 million passengers. From its Abu Dhabi base, Etihad Airways flies to or has announced plans to serve 113 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas. The airline has a fleet of 119 Airbus and Boeing aircraft, and more than 200 aircraft on firm order, including 66 Boeing 787s, 25 Boeing 777-X, 62 Airbus A350s and six Airbus A380s.
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