IBM Running Late On $863M Data Center Project For Texas

The state of Texas says an $863 million data-center consolidation project with IBM has fallen short of promised savings by $14 million and that only 75 servers had been moved into the new facilities by July 31 instead of the 619 specified in the contract.The 7-year contract, signed in 2007, calls for data-center operations for 27 separate state agencies to be consolidated into two new facilities with the objectives being enhanced security and lower costs, according to the Austin American-Statesman.

In addition, high-profile data breaches involving state systems last year led to the suspension of the data-center consolidation project until IBM could prove to the state that necessary security measures were in place, the article said. As a result, seven of the state's 27 agencies have still not signed off on IBM's proposed plan for managing data backup, which could lead to additional delays.

Adding to IBM's challenge on this project are the results of a survey of the IT directors for the state agencies: 88% said they're dissatisfied with the services IBM has been providing.

However, the article also notes that one of the three state agencies whose data-center operations have been moved into the new facilities is very pleased with the new service and capabilities.