IBM continues its strong start to 2011, as it snatched a $7.7 million contract for the New York City government. The technology and software consulting firm will be primarily exploring cloud computing to aid in streamlining the Big Apple’s storage data centers. This deal already covers the first part of a three-phase project called CITIServe, that will ultimately see 50 different municipal data center operations scattered around the city consolidated over five years.

Today NYC faces a $4.4 billion deficit, but could be lowered by as much as $100,000 each year, depending on the performance if IBM’s implemented system.  This deal is expected to close soon, and will now propel systems to take advantage of underutilized computing power, turning to technology for efficiency factors.  As IBM embraces cloud adoption, and improved solutions come together, the ideals around cloud efficiency work their way towards a definitive real-world execution.

In an interview following the big announcement, IBM General Manager Bridget van Kralingen detailed the scalability and functionality of cloud computing to government today.  She said, “By modernizing technology infrastructure, government organizations are able to speed the deployment of new technologies, reduce energy and operating costs, increase security, and better understand their data in order to expedite benefits tracking, root out waste, and provide transparency to the public on performance.”

Along with the recent developments, IBM is also looking at designing social media applications for end users. Alistair Rennie, head of IBM’s social networking activities, the software will feature an activity feed, which gathers information about customers, relevant news and information about colleagues, Rennie said. With this planned cloud service, customers also will be able to have video Web meetings, share pictures and post blogs. Celebrating its centennial year today, IBM has grown from computer & software manufacturing just recently.

[image via CBC]