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CIBC awarded the contract without engaging in a formal request-for-proposal process, said Mike Woeller, senior executive vice-president and chief information officer at the Toronto-based bank.
HP will manage CIBC's IT infrastructure, including desktop PCs, high-end systems, plus software from HP, IBM, Sun Microsystems and Microsoft.
CIBC's infrastructure includes NonStop Himalaya systems from HP, Unix and Windows NT servers from a variety of vendors and AS/400 midrange servers from IBM.
HP will also handle technology procurement for CIBC, as well as help the bank manage its assets and relationships with IT vendors and provide application support services.
The deal is an important step for HP "to establish credibility" in the IT services market as it strives to compete against the likes of IBM's Global Services unit and Electronic Data Systems (EDS), said Andrew Efstathiou, an analyst at research firm Yankee Group.
"There have been lots of questions arising from the Compaq merger, so HP must demonstrate that it is able to attract business, has the confidence of customers and is able to undertake large projects," Efstathiou added.
In a related deal, HP is buying out CIBC's share in Intria-HP, a joint venture established in 1998. HP's willingness to buy CIBC out of the joint venture and the decision to award HP the contract "clearly, to some degree, go hand in hand," said CIBC's Woeller.
However, he added that "the fundamental decision about our go-forward position was really predicated on the strength of the services agreement".