New ATO mainframe pushes IBM deal to $900m in nine months


IBM has secured almost $900 million in federal work through its renewed whole-of-government sourcing agreement in less than nine months, with a new mainframe at the Tax Office pushing the deal well outside the limits of its initial valuation.

The Australia Taxation Office (ATO) awarded the American tech giant an $87.7 million contract at the end of July to replace its end-of-life z14 mainframe with a new z16-based platform.

As its latest Z series mainframe, IBM claims the z16 is capable of scaling to process up to 300 billion inference requests per day with just one millisecond of latency, making it ideal for the surges in demand that face the ATO.

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