IRS Inks $50 Million Hardware Deal With HP

The agency will buy 3,000 servers and 30 storage area networks as it seeks to upgrade and simplify its systems.

The Internal Revenue Service has agreed to a $50 million deal to buy 3,000 HP ProLiant servers, including blade servers, and 30 HP StorageWorks storage area networks from a partnership between integrator PlanetGov and Hewlett-Packard, HP said Thursday. The agreement also involves professional consulting services.

The new hardware will replace thousands of IBM and Dell servers over the next four years, HP says, and will let the IRS simplify, integrate, and remotely manage its IT systems.

This isn't the IRS's first deal with the HP partnership. Last year, the IRS awarded a three-year, $100 million contract to the team to supply the agency with Compaq Evo desktop and notebook PCs.

HP recently has won a number of big-money hardware and services contracts. The company said earlier this week that it recorded $1 billion in services business in the last quarter alone, including agreements with Land O'Lakes, Novell, and the U.S. Postal Service.

News source: InformationWeek - IRS Inks $50 Million Hardware Deal With HP