• by Steve McClellan  @mp_mcclellan, December 2, 2014

WPP and IBM have formed a new strategic partnership that includes a seven-year, $1.25-billion service contract for IBM to manage WPP's global technology platform.

The agreement will enable WPP to develop new digital services that will be run and managed within a global hybrid IBM cloud infrastructure, the companies said.

As part of the agreement, IBM will provide a service delivery and technology platform that allows WPP to integrate its operations while delivering “significantly improved productivity.”

IBM said the agreement will enable WPP to Expand its use of Big Data and analytics to drive decision making and “amplify” the creative process while continuing to enhance the holding company’s digital and mobile capabilities. It will also enable WPP to “more quickly deploy new products and services” and “foster greater horizontal communication and collaboration across its multiple brands.” 

"As the world's largest communications group, we are seeking to exploit IBM's cloud computing expertise to allow us to innovate and add value to both the service and the product we deliver to clients across 111 countries," said Robin Dargue, WPP Group CIO.

"This announcement is a significant milestone in the deployment of enterprise cloud and extends IBM's position as the premier global cloud platform," said Erich Clementi, senior vice president, IBM Global Technology Services. "Our secure, open enterprise cloud platform will enable WPP to quickly deliver new innovations to their customers."

IBM and WPP already have a long-standing working relationship -- the tech company has used WPP agencies, including ad shop Ogilvy & Mather and media agency Mindshare for years.