The Texas Department of Information Resources (DIR) and IBM have inked a seven-year data-center services agreement. The contract is valued at $863 million, and has a base period for four years and three one-year extension options.

Under the terms of the contract, Unisys will work as a sub-contractor to IBM for establishing a new data center in Austin. The deal leverages the buying power of the state to modernize the technology infrastructure, enhance information security and disaster recovery capabilities and provide flexibility to meet changing business requirements.

The contract includes over 20% historically underutilized business participation, performance metrics, extensive reporting and collaborative governance with participation by all 27 agencies. With the new agreement come increased security levels for assets and information not currently seen in state government.