Etihad Hires IBM for Cloud-Based Technology in $700 Million Deal

  • Infrastructure, security network to serve Etihad, affiliates
  • About 100 Etihad information-technology workers to move to IBM

Etihad Airways reached a $700 million, 10-year agreement for IBM Corp. to develop cloud-based computer systems to link the carrier and its affiliates’ passenger and airport operations.

IBM will provide the Abu Dhabi-based airline and partners in which it holds stakes with analytics, mobile and security technology, the companies said in a statement. The other carriers being served will include Alitalia, Air Berlin Plc, Jet Airways (India) Ltd., Air Serbia AD, Air Seychelles Ltd. and Etihad Regional.

Etihad’s growth strategy is focused on minority-stake investments in other airlines, with cooperation allowing the partners to reduce unit costs and strengthen bargaining power. The deal with Armonk, New York-based IBM follows Etihad’s joint efforts with the other carriers for raising funding and developing a global customer-loyalty programs.

About 100 Etihad information technology employees will move to IBM, which will also develop a data center in Abu Dhabi.

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