In a deal showing just how massive and pivotal the quest is for digital modernization, Anthem is investing half a billion in a flexible, scalable cloud.
Last year, the Anthem corporation of Blue Cross and Blue Shield health plans in 14 states migrated all of its individual and small group data onto a single platform, a point of efficiency that CEO Joseph Swedish was keen to note at the JP Morgan Healthcare Conference.
The for-profit company formerly known as Anthem is one of dozens of insurers large and small that's spent the past decade going through a slough of digitization, in claims processing and adjudication, member services and marketing.
Now, Anthem, the nation's second largest health insurer, is looking to improve its IT to improve its operations and is partnering with IBM to make it happen -- Big Blue of healthcare and Big Blue of IT.
In an approximately $500 million, 5-year agreement, IBM will provide operational services to Anthem's mainframe and data center servers. In the hybrid data approach, Anthem will use the IBM Cloud while also using its traditional in house infrastructure.
IBM will offer its "new cloud orchestration capabilities" that will give Anthem a foundation to integrate cloud infrastructure, off-premise or on-premise, into its existing data center portfolio and allow the insurer to consolidate its infrastructure onto a more flexible and scalable platform.
"The healthcare industry is going through dynamic change that requires us to be more agile and responsive, utilizing advanced technology," said Anthem chief information officer Tom Miller. "Our partnership with IBM will help provide the infrastructure and IT capabilities we need to respond rapidly to market demands, launch new products for plan members and deliver on Anthem's mission to transform healthcare with trusted and caring solutions."
"IBM and Anthem have a rich history of collaboration in applying robust technology services to improve healthcare processes and quality," said Philip Guido, general manager of IBM Global Technology Services in North America.
Anthem's investment in the hybrid enterprise cloud is aimed at enabling responsiveness and efficiency in times of healthcare evolution. It's a strategy that a lot of other large companies are also taking, which is helping IBM transform itself into the cloud area.
Amid a restructuring and transition away from its historic businesses, IBM has made a big foray into the enterprise cloud business, reaching its goal of $7 billion in cloud revenues by the end of 2015 a year early.
IBM now has 40 cloud data centers globally, with clients such as Lufthansa, and a new Bluemix, open-standards, cloud-based platform for building, managing, and running web, mobile and big data platforms.