Deutsche Bank is to move its IT infrastructure into HP’s Helion managed private cloud to free up its own IT department.
The decade-long, multi-billion dollar deal will see HP provide storage, platform and hosting services on demand to the German giant, which will focus on innovations in app development and information security.
It will also hold on to its IT architecture, but believes the move should significantly cut its technology infrastructure costs.
The deal forms part of a wider IT transformation programme that will see Deutsche Bank upgrade and reduce its number of IT applications then move them onto HP’s private cloud platform.
Henry Richotte, COO of the bank, said: “Having a more modern and agile technology platform will further improve the bank’s ability to launch new products and services and lay the foundation for the next phase of its digital strategy.”
TechMarketView analyst Peter Roe agreed, saying the move would help the bank become more innovative.
“Applications will be moved onto the HP platform so Deutsche can focus its internal IT resources where they can drive most benefit,” he said.
“Deutsche will also be able to rationalise its legacy application stack and deploy innovative applications more speedily as it can access additional infrastructure as needed.”
He called the deal “a large feather in HP’s cap”, giving it “massive credibility” in the financial services sector.
But while Roe stated it was an indication to other banks of the value of the private cloud, other institutions may find it hard to imitate the move.
“The use of cloud has been gaining ground and widespread acceptance [in financial services],” Roe said, but added most banks don't have Deutsche's agility in IT.
“Deutsche Bank has long had a more centrally-driven and structured approach to IT than many other banks, who may find it more difficult to move to such a delivery model.”
HP CEO Meg Whitman claimed the bank’s “proactive” approach would help it meet customer needs.
“Through this partnership, Deutsche Bank will meet its long-term business objectives through a transformation of its IT infrastructure, including a customised HP Helion solution that will enable them to focus on creating and delivering new services for their clients,” she said.
