According to a recent press release from international IT company Unisys, it will begin working with the Internal Revenue Service to provide completely private cloud storage. Under the Enterprise Storage Acquisition task order, Unisys will manage all of the IRS’ records.

Unisys won the contract, and will keep it for at least a year. After the initial year, they will have nine more one-year options. The contract, if it runs for the entire discussed decade, could net the Pennsylvania company $139 million. Each year of service is priced differently, based on an internal analysis the IRS ran estimating their required storage.

According to Ted Davies, the president of the company’s Federal Systems division, deals like this could become more commonplace. Even the Internal Revenue Service is operating under significant budget restrictions, and outsourcing their cloud storage needs to partner companies is simply more cost effective.

As the contract begins, Unisys will take on all of the storage assets that the IRS currently owns and manages, folding them into their own cloud storage network. All in all, Unisys will take on upwards of 7.5 petabytes of the IRS’ current storage space, held is a range of data centers.

Unisys will then design, construct and launch a completely new storage environment for the IRS, moving all of their current data onto a private cloud service. The IRS will pay for the space they are currently using, and then will spend more as their storage needs increase. 

The stock market responded well to the new announcement, as shares of Unisys stock rose by nearly 3% by the end of business on Thursday.

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