A DEAL has been struck between a North-East city and an IT giant to create a new hi-tech computing environment.

The Cloud, in Sunderland, will be one of the first of its kind in Europe, drawing on existing IBM technology delivered in China and the US.

It promises to save millions of pounds and boost the city’s economy.

City council leader Paul Watson said: “We have a good reputation in Sunderland for innovation in both the public and private sector.

“In the current climate, it is vital local authorities like us use our own assets to not only improve services but to stimulate economic growth for the benefit of the whole city.

“The Sunderland Cloud is a cornerstone of our economic masterplan.

“The Cloud infrastructure will lay the foundations of an even smarter Sunderland, one that ensures the city continues to be internationally recognised as a forwardthinking city and a prime location for inward investment.”

For an investment of £5.7m, with IBM and other suppliers, the project is expected to pay for itself within five years.

In addition to the financial savings, the Cloud will provide a low-cost, accessible and secure network across Sunderland.

One of a number of initiatives being implemented, it will allow residents to access services and information quicker and easier – “making the council more responsive,” said Mr Watson.

Businesses can benefit through the ability to increase capacity and capabilities without investing in new infrastructure, training personnel or licensing software.

Other public sector partners are expected to use the Cloud for improved collaboration.