Motoring services company AA signed a �50m outsourcing deal with IBM. Under the deal, IBM will set up AA's new IT infrastructure and introduce a pay-as-you-go utility computing environment. Karen Gillespie, AA's head of infrastructure, said, "We need an IT function that can support rapid change in the new AA."

For AA's new IT infrastructure, 200 servers will be transferred to IBM datacenters. This involves setting up help desk services, email, networks and hosting facilities. Additionally, 4,500 PCs will be provided with a standardized desktop managed by IBM.

Starting with AA's new email service, the company's system will move to an on-demand model. Gilliespie said, "We will move to a pay-as-you-go model where we can. Our legacy applications are not designed that way, but we want to drive the datacenter to be a commodity, on-demand service in seven years. As applications are refreshed, we will use IBM technology to get a more cost-effective computing model."