Terms of the deal were not disclosed. Armonk, New York-based IBM said the agreement is based on a flexible pricing model in which Target will pay only for the services it uses.
IBM has been pushing such "on-demand" computing for more than a year under Chief Executive Officer Samuel Palmisano. Under these offerings, IBM aims to make computing cheaper and more flexible as well as enable businesses to access information and react to it more quickly. Minneapolis-based Target has had a long-term relationship with IBM.