Feeds

Japanese bank sues IBM over 'difficult' system overhaul

11.1bn yen ought to make things easier

Combat fraud and increase customer satisfaction

A Japanese bank is suing IBM for $107m over a systems contract it abandoned because Big Blue's proposal was too difficult to carry out.

Suruga Bank, based in the Shizuoka Prefecture, filed the lawsuit in Tokyo District Court, seeking 11.1bn yen.

Suruga first announced it would replace most of its systems with IBM's "Next Evolution in Financial Services Systems" (NEFSS) in Oct. 2004. The IBM package included a Java-based banking application from Fidelity Information Services and various flavors of IBM database software that can run on mainframes, Unix systems and x86-based boxes.

At the time, IBM heralded the deal as the first NEFSS adoption in Japan, predicting full-scale operations ready for Suruga in the second half of 2007.

But when IBM gave its proposal, the bank turned up its nose at the changes.

"We are suing because we decided it would be difficult to implement the system they suggested," a spokesman for Suruga told Reuters.

Suruga now wants 11.1bn yen from IBM Japan based on fees paid and revenues lost from being unable to implement the new system.

"IBM has fulfilled its obligations to Suruga Bank and will vigorously defend itself in this matter," IBM said in a statement. As of publication, Big Blue was not available to specify what exactly made the deal go pear-shaped. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Microsoft builds teleporter weapon to send VMware into Azure
Updated Virtual Machine Converter now converts Linux VMs too
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.