Department of Interior Picks Verizon for $10B 10-Year Cloud-Hosting Contract
The U.S. Department of the Interior has selected Verizon (NYSE: VZ) to participate in a $10 billion, 10-year contract to provide cloud and hosting services. This is potentially one of Verizon's largest federal cloud contracts to date.
Verizon is one of 10 companies that will compete to offer cloud-based storage, secure file transfer, virtual machine, and database, Web, and development and test environment hosting services. The company is also one of four selected to offer SAP application hosting services.
Each of the 10 agreements awarded under the Foundation Cloud Hosting Services contract has a potential maximum value of $1 billion.
A key component of the department's IT Transformation initiative, the Foundation Cloud Hosting Services contract has an initial three-year term that can be extended through April 2023. The contract is an essential pillar of the department's multiyear transformative initiative, which is expected to produce savings of $100 million a year from 2016 through 2020.
The contract will enable the Department of the Interior to modernize the way it manages applications and stores data, and control costs through a reduction of its data center footprint.
The services covered by the contract will be available to all nine of the department's technical bureaus and seven administrative offices covering more than 2,400 locations and 70,000 employees. The department also expects that other federal departments and agencies will use the contract to purchase cloud services.
"Verizon has a history of successfully providing advanced networking and security solutions to the Department of the Interior," said Susan Zeleniak, senior vice president, public sector markets, Verizon Enterprise Solutions. "The Foundation Cloud Hosting Services contract represents an expansion of Verizon's engagement with the department and will enable it to leverage Verizon's significant cloud investments and expertise to help the department achieve its long-term objectives."
The Department of the Interior provides stewardship for 20 percent of the U.S. land mass and manages national public lands, minerals, parks and wildlife refuges. It is also responsible for wildlife and endangered species conservation, historic preservation, land protection and restoration, mapping and geological, hydrological and biological science initiatives, as well as Indian and Alaska Native programs.
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