Taxman signs up HP for storage hardware

Hewlett-Packard and partner PlanetGov will replace a number of IBM and Dell servers currently in use at the Internal Revenue Service.

Matt Hines Staff Writer, CNET News.com
Matt Hines
covers business software, with a particular focus on enterprise applications.
Matt Hines
2 min read
Hewlett-Packard has won a $50 million storage hardware deal with the Internal Revenue Service.

Under the deal announced Thursday, HP and partner PlanetGov, a government reseller, will replace over the next four years a number of IBM and Dell servers currently in use at the IRS. The contract calls for HP to supply approximately 3,000 ProLiant servers (including blade servers) and 30 of its StorageWorks storage area networks, along with related consulting services.

The agreement comes as the IRS pushes to simplify and consolidate its aging information technology systems. It follows two deals that HP and PlanetGov landed last year to provide the Department of Treasury's tax unit with in desktop and notebook PCs, deals worth $135 million combined.

IRS representatives refused to comment on whether Thursday's deal is related to an ongoing project to replace computer systems, undertaken with contractor Computer Sciences, which has been criticized for failing to meet budget and scheduling expectations.

The IRS pact is the latest in a string of lucrative hardware and services contracts for HP. The company said earlier this week that it recorded $1 billion in services business over the last quarter. That business came from agreements with Novell, Land O'Lakes and the U.S. Postal Service, and from an earlier $600 million outsourcing pact with the Bank of Ireland.

HP's largest recent deals include a $135 million, 15-year contract from the Romanian National Health Insurance House and a $115 million contract from plastics maker Amcor. The U.S. Postal Service pact is a $50 million, eight-year contract to upgrade systems at its Washington headquarters.