Texas Officials Blast IBM's Data Center Consolidation Effort

AUSTIN, Texas (AP) — IBM Corp.'s big data center consolidation contract with Texas is close to collapsing.

State officials warned IBM on Friday that it has 30 days to fix problems with its effort to merge the data centers of 28 state agencies into two facilities.

If it doesn't, the $863-million contract could be terminated.

The project has been plagued by delays, equipment failures, data losses and frustration among the state agencies.

Karen Robinson, who's the executive director of the Texas Department of Information Resources, says IBM has failed to deliver on its promises. But Jeff Tieszen, a spokesman for IBM, told the Austin American-Statesman that the company has fulfilled its obligations. He said Friday's action was unnecessary and unjustified.