IBM Signs 10-Year Information Technology Agreement with Gap Inc.

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Armonk, N.Y. - 17 Jan 2006: IBM today announced that Gap Inc., the world's largest specialty apparel retailer, selected IBM as its provider for IT infrastructure services. The 10-year, approximately $1.1 billion contract will provide Gap Inc. with mainframe, server, network, helpdesk and deskside support services across its North American stores and corporate locations.

IBM has worked closely with Gap Inc. to develop a virtualized server and storage platform strategy that will scale to meet peaks and valleys in demand.

"IBM is a global leader in infrastructure services and a long-standing partner of Gap Inc.," said Gap Inc. chief information officer and executive vice president, Michael Tasooji. "Delivering capabilities that drive our retail business, provide competitive advantages and serve our customers are our highest priorities. Transferring our technology infrastructure operations to IBM enables us to deliver and implement these solutions faster."

To enhance in-store customer support, IBM will extend its networking capabilities to the company's more than 2,850 North American retail locations. IBM will provide the technology and integration expertise to migrate the stores to a leading-edge wireless network.

IBM will also consolidate Gap Inc.'s IT systems and leverage its resources to provide global operations and support.

As part of the relationship, Gap Inc. will have access to an IBM Innovation Center, which brings together IBM subject matter expertise from various areas within IBM and IBM knowledge of the retail and other industries.

"IBM understands the business and technology imperatives that drive the retail industry," said Bob Zapfel, IBM's general manager of information technology services, Americas. "We look forward to extending our relationship with Gap Inc., one of the world's largest and well-known apparel retailers."

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