Looking to modernize its computing infrastructure, Hartford Financial Services Group Inc. announced a six-year technology contract with Armonk, N.Y.-based IBM Corp. on Wednesday.
The Hartford, Conn.-based insurer said the $500 million deal includes a private cloud-computing infrastructure that will enable it to implement more modern information technology to serve its property/casualty, group benefits and mutual funds businesses.
Under terms of the agreement, IBM will provide mainframe computing, storage, backup and resiliency services to Hartford. By moving a part of its technology infrastructure to a private cloud, the insurer will be able to trim costs while gaining access to new technologies faster, said Philip Guido, general manager of IBM's global technology services in North America.
“As The Hartford continues to execute on its strategic plan, we are making significant technology investments to increase operational effectiveness and improve our competitiveness,” Andy Napoli, president of consumer markets and enterprise business services at Hartford, said in a statement. “The partnership with IBM will help The Hartford implement a strategic technology infrastructure that will provide us with greater agility and offer us more flexibility and transparency as we continue to grow our businesses.”
“We are working with The Hartford to help them move to a private cloud,” Mr. Guido said. “This new environment will enable them to move from a fixed-cost structure to a variable-cost structure and provide them greater transparency.”
The cloud will be hosted in servers located at Hartford's own data centers, as well as at IBM data centers across the globe, Mr. Guido said.