NTT DATA Takes Over Texas Public Cloud Manager Role

Texas agencies using public cloud services through the Department of Information Resources (DIR) will see new discounts, lower procurement fees and additional management tools following NTT DATA’s transition into a statewide cloud management role.

NTT DATA assumed the state’s Public Cloud Manager (PCM) role June 1 for the department’s Shared Technology Services (STS) program, replacing Rackspace. The company will support agencies using Amazon Web Services (AWS), Microsoft Azure, Google Cloud and Oracle Cloud environments, according to a release provided by DIR exclusively to Industry Insider — Texas.

The change affects both cloud management and procurement. STS customers using AWS through the PCM program will receive discounts of 21 percent in the first year and 22 percent in years 2 through 4. The updated model also eliminates previous procurement sourcing fees for Cooperative Contract and open-market purchases, according to the department.

Public contract records describe the NTT DATA Americas agreement as covering PCM services for eligible DIR customers through the Data Center Services program. The contract page lists the contract term through Aug. 31, 2030, and an expiration date of Aug. 31, 2034.

No resellers are available under the PCM contract. Customers must have an interagency or interlocal contract with the department before ordering services.

The PCM program has supported Texas agency cloud needs since 2020. In its release, the department said the transition is part of broader work to modernize STS and simplify IT procurement.

NTT DATA announced publicly in October that it had been selected by the department for a multiyear agreement to provide public cloud managed services across AWS, Microsoft Azure, Google Cloud and Oracle. The company said the work would focus on helping customers procure, use and manage cloud resources across the state.

“We are honored to officially begin serving as the public cloud manager for DIR. This milestone reflects our shared commitment to helping Texas agencies accelerate public cloud adoption, strengthen security and governance, and deliver more efficient digital services to the people of Texas,” said Beth Howen, executive managing director of state, local and education at NTT DATA, Inc. “We look forward to working closely with DIR, state agencies and our public cloud providers to advance Texas’s digital transformation journey and deliver meaningful outcomes for citizens across the state.”

The department said NTT DATA’s approach includes tools intended to provide agencies with greater visibility, transparency and control across their public cloud environments. The company’s public announcement also referenced work involving cloud optimization, real-time insights, training, outreach and financial operations support.

“Our goal is to evolve the PCM program to meet the changing needs of our customers,” said DIR Executive Director and State CIO Tony Sauerhoff. “The transition to NTT DATA builds on the strong foundation of the program while providing customers with greater flexibility, enhanced visibility and additional tools to help them manage cloud technologies more effectively.”

DIR’s Data Center Services structure sits within the broader STS program. A related department contract page describes the multisourcing services integrator role as providing governance and oversight for service component providers across Data Center Services, texas.gov, Managed Security Services and the Texas Open Data Portal.