The long-time IT agreement between IBM and Westpac will continue for another five years, the companies have announced.

The new contract, which will last until 2017, builds on an agreement first signed in 2000.

IBM will provide a range of technologies under the new deal, including new IBM z196 mainframes, virtualised midrange servers and storage, and enhanced security and data center network technology. Ultimately, the deployment will support the low-risk transfer to new data center facilities.

Andrew Fox, general manager, Global Technical Services for IBM New Zealand, says the deal signifies an even closer alignment between the companies.

"The on-going investment by Westpac in advanced technologies will positively differentiate its brand in many ways,” Fox says, "such as higher energy savings and improved customer service.

Earlier this year, IBM announced an extension of its deal with Air New Zealand to 2021, despite historical tensions between the two.