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IBM: In a State

IBM's state government projects may be a storage win for the company and its partners

IBM is quietly shoring up state government deals that could bode well for its future -- and that of its storage partners.

This week, the Indiana state government announced that Gov. Mitch Daniels (R) has accepted a recommendation from a group of state agencies to contract an IBM-led team of consultants and integrators for a series of projects totaling $1.16 billion over 10 years.

The plan, which is set to be finalized after a December 8 public review and various government approvals, would require IBM and its partners to create a system that determines the eligibility of candidates for welfare under the Indiana Family and Social Services Administration (FSSA). Additionally, IBM will have to donate an IBM BladeCenter Cluster and associated services worth $6 million to $7 million to Purdue and Indiana Universities.

If and when it's finalized, the deal could include a ton of business on the storage side. "I'm sure there will be some storage. Whether it's Shark, LSI, or NetApp, I have no idea. It could even be EMC or HDS since these are IGS [IBM Global Services] wins," says one industry analyst, who asked not to be named.

None of the big storage and data management vendors associated with IBM, including LSI and NetApp, would comment on the deal.

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