Home
auf Deutsch           
Sign In / Register Advanced Search 

IBM’s $863m contract with State of Texas in limbo

 
State officials complain about poor service even for routine functions
(7/19/2010)
A large backlog of work requests from its State of Texas customers unattended by IBM has put the technology service provider’s large contract with the state further in jeopardy. On Monday, the state’s House budget panel heard a testimony by Ed Swedberg, deputy executive director for the state’s Department of Information Resources, in which he reported that the company has failed to deliver even some of the most routine services, The Dallas Morning News reported.

The testimony follows issuance of a warning from state officials late last week that unless it fixes a number of issues with the ongoing state data center consolidation project in the next 30 days, IBM will lose the $863m contract to transfer IT infrastructure of more than 25 state agencies to two upgraded data centers, according to an American Statesman report.

“These are day-to-day requests, such as adding memory to a server, restoring a file or re-setting a password,” The Dallas Morning News quoted Swedberg as saying. “This is of course frustrating … and more importantly affects the agencies’ ability to serve citizens and other constituents.”

When approached by the news service, an IBM spokesman dismissed the testimony as “misguided accusations” by state officials.

The warning IBM received from the state last week included accusations of 19 contract breaches by the service provider in the data center consolidation project. “As of today, IBM has only completed a little over 10 percent of the total server consolidation,” Swedberg said. “We continue to rely on aging infrastructure of our critical systems and applications. This is clearly unacceptable.”

The company has already received more than half of the total payment for the project.

Trouble in the relationship between IBM and the State of Texas was first made public in November of last year, when the Secretary of State’s office decided to exclude the state’s election system from outsourcing to IBM. The reason cited was a server crash that resulted in 13 days of downtime of a filing system the agency maintained.

Related news: Air New Zealand shifts mainframe from IBM data center
Related news: New North Carolina data center is IBM design at its best
Related feature: State of Washington IT department leaves the outsourcing discussion behind

Keywords: IBM, State of Texas, data center consolidation, contract breach, state data center, IT outsourcing

Comment Box
 
You must sign in to post
 
Username 
Password 
No Blogger account? Sign up here.
CAPTCHA Validation
Retype the code from the picture
CAPTCHA Code Image
Speak the code Change the code
 
Articles:
  • Could this be the greenest data center in Australia?
  • The dawn of cloud-ready server architectures
  • Governance for infrastructure in the cloud
  • Building a cloud platform to support space missions
  • US FEDERAL AGENCIES SLOW TO ANSWER WHITE HOUSE CALL FOR CLOUD ADOPTION
  • HP tackles sprawl and complexity with higher compute densities, automation and network convergence
  • Keeping the traffic moving in the French city of Orleans requires 50TB of Solid State Disk
  • Brazil IT struts the world stage
  • Cisco says new data center roadmap works and has numbers to prove it
  • Ballmer Commits Microsoft to the Cloud
News:
  • Citigroup MD sings praise for the IBMz 196 mainframe
  • Oracle targets new Sun servers at the telecoms sector
  • VMworld: Terremark’s cloud offering wins Best of VMworld 2010
  • Dell pulls out of bidding war with HP to buy 3Par
  • VMworld: VMware R&D automates space and i/o balancing in storage arrays
  • Colt offers VMware's vCloud service in Europe
  • Taiwan telecoms giant considers accelerating cloud plans
  • VMworld: VMware to pursue enabling delivery of IT as a service
  • HP raises offer to buy 3Par to $2bn
  • UPDATE: HP counters Dell’s offer to buy 3Par with a $1.8bn bid
Download Library:
  • Assessing Trends Over Time In Performace, Costs And Energy Use For Servers
  • Improving data center storage energy efficiency
  • How Server And Network Virtualization Make Data Centers More Dynamic
  • CA: Virtualization and Automation Drive Dynamic Data Centers
  • Performance and Energy Advantages of Dell Energy Smart Servers and Liebert Cooling Systems
  • Optimizing Data Centers for High-Density Computing
  • Virtualization for Consolidation and Optimization of System Resources
  • Energy Efficient Infrastructures for Data Centers
  • Reducing Carbon Footprint through the Deployment of Remote Workstation Solutions
  • Virtual Servers - Impact on Data Centres Space, Power & Loading
DatacenterDynamics delivers knowledge and networking opportunities to professionals that design, build and operate data centers through a combination of conferences, magazines, websites and research products.
Keywords: computer rooms, server farms, datacomm facilities, telecom sites, data centres, colocation, carrier hotels, data center strategy,

© DatacenterDynamics 2010