New York City hops on cloud with IBM -

IBM has been hired to help New York City consolidate the technology departments for more than 50 city agencies through the use of cloud computing.

New York City, which faces a deficit of as much as $4.4 billion, could save around $100 million over five years by using this technology, IBM said in a statement. At the same time it'll be a tidy earner for IBM.

Savings will be made through streamlining the "delivery of City services" by consolidating and updating outdated and incompatible IT. It is thought by doing this the City will be be able to reduce energy consumption and strengthen security.

IBM will be paid about $10 million for its troubles that will include consolidating and migrating 50 agency data centres to a cloud computing environment. It has been awarded the first phase of this project for the initial 14 agencies but hopes that this will be the start of an ongoing project.

The first services to be streamlined will be the help desk, hosting, storage, email, virtualisation and networks.