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IBM bags $700m services and infrastructure contract with Etihad Airways

IT deal comes after 13 straight quarters of decline for Big Blue

IBM has signed a $700m deal with Etihad Airways to provide IT services and infrastructure over the next 10 years.

Big Blue's agreement includes the development and operation of a cloud data centre in Abu Dhabi, the capital of the United Arab Emirates, for which state-owned Etihad Airways is a flag carrier.

IBM stated that its "cloud, analytics, mobile, security and cognitive technologies will drive increased efficiencies and effectiveness for all Etihad Airways businesses".

The agreement also includes IBM's "mobile solutions, developed under the Apple-IBM alliance".

About 100 of the airline's current IT staff will transition to IBM, as will Etihad Airway's current data centre, IT infrastructure, applications and security operations.

The deal comes as IBM prepares its Q3 report, due later this month. Big Blue's Q2 report, released in July, stated that the company had suffered a revenue decline for its thirteenth consecutive quarter. ®

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