AA calls up IBM for new infrastructure

IBM has won a £50m contract to build and run a new IT infrastructure for roadside recovery organisation the AA.

IBM has won a £50m contract to build and run a new IT infrastructure for roadside recovery organisation the AA.

The five-year deal will see IBM separate the AA's systems from those of former parent Centrica, which sold the motoring services company to private equity firms Permira and CVC last September.

Under the terms of the contract, IBM will take on up to 60 Centrica staff.

Analyst Ovum Holway said of the deal, “It looks like this may become something of a showcase for the way Big Blue plans gradually to migrate some customers to its evolving "on-demand" outsourcing model.”

IBM’s on-demand strategy follows a pay-as-you-go model, where users invest more as they expand their hardware and systems.

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