Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. – The State of Texas has given IBM (NYSE: IBM) a 30-day warning to “fix the myriad problems” plaguing a data center merger project or have its $863 million contract terminated, the Austin American-Statesman reported Saturday.
“IBM Corp.’s $863 million data center consolidation contract with Texas is teetering on collapse,” wrote reporter Kate Alexander in a story headlined:
‘Chronic failures’ threaten IBM contract with Texas
"$863 million data center consolidation contract in jeopardy."
In a letter to IBM, the newspaper said the state complained:
"The accumulated effect of under-investment by IBM, poor performance, and continual disregard for the protective obligations of the (contract), has resulted in harm to state agencies, exposure to unnecessary risks, and failure to achieve the objectives set and agreed to by IBM."
IBM spokesman Jeff Tieszen said the company "has fulfilled its obligations under the contract and today’s action by DIR was unnecessary and unjustified," according to the newspaper.
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IBM employs some 10,000 people in the RTP area.
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