The New York State Office of Information Technology Services (ITS) announced on Aug. 13 a new enterprise agreement with IBM that will expand access to artificial intelligence (AI) and hybrid cloud tools across participating state agencies while delivering an estimated $6 million in taxpayer savings over the next three years.
The agreement, signed in the second quarter of 2026, gives participating New York State agencies access to IBM’s hybrid cloud and AI software portfolio to help automate business operations, modernize applications, strengthen cybersecurity, and manage technology across hybrid and multicloud environments.
ITS said the agreement is part of its broader effort to promote affordability and protect state taxpayers through enterprise-level agreements. The agency has negotiated and signed 14 such agreements, which it said are generating $58 million in annual savings. ITS serves more than 50 state agencies and entities and provides technology tools to more than 130,000 state employees.
“By inking this enterprise agreement with IBM, we have renewed our commitment to working to modernize our offerings, finding cost-effective solutions that work across multiple agencies, and delivering even more for the people of our State. We thank IBM for their ongoing partnership as ITS and New York State continue to focus on innovative solutions to serve New Yorkers,” New York State Chief Information Officer and ITS Director Dru Rai said.
The agreement covers technology capabilities for AI-powered productivity and intelligent workflows, application development and modernization, hybrid cloud and multicloud management, cybersecurity and data protection, and data management and governance.
It also includes capabilities for asset, facilities, and sustainability management, as well as financial planning and technology investment management.
ITS said the tools can help state agencies work more efficiently, automate business operations, modernize applications, strengthen cybersecurity, and manage technology across hybrid and multicloud environments.
“New York State has been central to IBM’s journey for more than a century as we’ve worked together to advance research, manufacturing, and technology innovation. Today’s agreement will help State agencies modernize operations, responsibly expand the use of AI and improve productivity and resiliency using IBM technologies,” said Frank Attaie, general manager of U.S. public sector at IBM.
