Deutsche Bank teams up with Microsoft, HCL, IBM allotting up to $1.11B for upgrades

Deutsche Bank dedicates the next 5 year in developing its infrastructure with the help of Microsoft, HCL and IBM. Microsoft shares ware upgraded by Deutsche Bank while US companies are also focusing on upgrades with the allocation of $316 billion for research and development.

Deutsche Bank allots 5 years and as much as 1 billion euros for its digital infrastructure revamp. It announced that the project is in partnership with Microsoft, HCL and IBM. The bank's Chief Operating Officer and Chief Digital Officer, Henry Ritchotte says "These labs will act as a bridge between start-ups and different parts of the bank, enabling it to apply innovative technology to enhance service to clients and internal processes." The partnership could be signaling a better relationship between Germany's largest lender and Microsoft.

Earlier, Deutsche Bank analyst Karl Keirstead reported he was impressed with Microsoft's performance which led him to raise his price target from $44 to $55, calling it relatively cheap. The analyst also lifted 'hold' rating on Microsoft shares saying that Microsoft doesn't show a lot of negative signs in the near future. The software leader has been showing impressive efforts with the introduction of new products with focus on its commercial suite showcased in the company's recent Ignite conference. The event strengthens Keirstead confidence with Microsoft and believes it can sustain its recent momentum.

Meanwhile, US companies are also catching up with industrial improvements. Reports say US companies is on a fast paced move for improvement despite low inflation and productivity. US enterprises have reportedly invested $316 billion for Research and Development from late last year up to March. The allocation is 1.8% of the US gross domestic product. Some economists interpret the widescale move as an effort to benefit from more efficient business methods.

US companies' R&D allocations show hope despite the US's slow growth. Deustche Bank agrees that there's no better time for an upgrade as it teams up with Microsoft, HCL and IBM.