IBM bags $62 mn cloud solution deal from U.S. Army

Robert Ferrell, CIO of U.S. Army
IBM announced its cloud solution contract worth $62 million over five years with the U.S. Army to ensure IT flexibility, efficiency and performance.

The cloud solution is part of the Army Private Cloud Enterprise (APCE) program designed for the Army’s Redstone Arsenal, near Huntsville, Ala.

If the US Army exercises all options — a one-year task order with four additional one-year options under the Army Private Cloud 2 (APC2) contract — the contract would be worth approximately $62 million over the five years.


IBM will provide Infrastructure-as-a-Service (IaaS) services, enabling the US Army to provision computing power on an as-needed basis for cost-effective IT, in addition to building the cloud infrastructure. The Army will begin migrating applications to the private cloud, moving up to 35 applications to the private cloud in the first year.

“With this project, we’re beginning to bring the IT infrastructure of the U.S. Army into the 21st century,” said Robert Ferrell, U.S. Army CIO.

This project required Defense Information Systems Agency (DISA) Impact Level 5 (IL-5) Provisional Authorization. Information impact levels consider the potential impact of information being compromised. IL-5 gives the cloud provider the authority to manage controlled, unclassified information.

IBM is the only company to be authorized by DISA at IL-5 to run Infrastructure-as-a-Service solutions on government premises. IBM announced the accreditation in February.

The distinction renders IBM an ideal partner for the Army as it undertakes this on-premise private cloud initiative. The Army expects IBM to achieve DISA IL-6 – the agency’s highest level – within one year, which would certify IBM to work with classified information up to secret.

Sam Gordy, general manager, IBM U.S. Federal, said: “This IBM Cloud solution will provide the Army with greater flexibility and will go a long way toward mitigating, and, in some cases eliminating, the security challenges inherent with multiple ingress and egress points.”

US Army last year adopted an IBM hybrid cloud solution for its Logistics Support Activity and has connected its on-premises environment to the IBM Cloud for greater performance, scalability and security.

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