IBM said Thursday its services unit won contracts worth over $1.5 billion with Nissan Motor`s North American unit and with AlliedSignal.
Under the Nissan contract, worth $1 billion over nine-and-a-half years, IBM will manage Nissan`s computer and network operations in North America.
IBM will manage industrial manufacturer AlliedSignal`s mainframe computer and helpdesk operations, as well as provide hardware software and other services, in a contract worth $550 million over seven years.
The two contracts boost the nearly $58 billion in backlog contracts the fast-growing Global Services unit has now. With these two deals, the unit was on track to beat last year`s contract wins, IBM spokesman Dave Caplan said.
"Last year we had 38 deals over $100 million and this year we are on track to exceed that," he said. "We add this to the storehouse of deals and it is like money in the bank. Many stretch over several years, but we can count on that revenue eventually getting booked."
In the first three quarters of 1999, the IBM unit has about $30 billion in new contracts, with 32 contracts of over $100 million. IBM Global Services brought in about 35% of IBM`s overall revenue last year and is IBM`s fastest-growing unit.
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