IBM, TSYS Sign $194M Technology Pact

By Peter Galli  |  Posted 2002-05-29 Print this article Print

The five-year deal calles for IBM to provide TSYS, the largest processor of retail accounts in the U.S., with its next-generation technology infrastructure.

IBM on Wednesday will announce a five-year, $194 million deal to provide TSYS, the largest processor of retail accounts in the United States, with its next-generation technology infrastructure. The terms of the deal call for the Armonk, N.Y., company to provide TSYS with hardware, software, maintenance and services. This includes eServer ZSeries mainframe processors, the TotalStorage 3494 Automated Tape Library and TotalStorage Enterprise Storage Servers, currently code-named "Shark," an IBM spokesman told eWEEK. TSYS, based in Columbus, Ga., is one of the worlds largest payment services companies and will deploy the new systems globally. That will allow the company to control operating expenses while significantly increasing transaction volumes, the spokesman said.
As a result, TSYS will reduce its server numbers by 35 percent and significantly increase data processing power. Once the implementation is complete, TSYS will rank among IBMs 25 highest capacity clients in the United States and among the top 50 worldwide, the spokesman said.
IBM said TSYS will also buy its complete portfolio of e-infrastructure software, including DB2 database software, Content Manager, Lotus, Tivoli and WebSphere Application Server. IBM Global Services will support the implementation of the software as well as the training of TSYS staff, while all the software, hardware and services will be financed through IBM Global Financing, he said. Related stories:
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    Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

    He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

    He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

    He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

    He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

    He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

    His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

    For numerous examples of his writing you can search under his name at the eWEEK Website at


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