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Texas fines IBM for 'crucial back-ups' failure

Server crash puts prosecutions at risk

Internet Security Threat Report 2014

Texas Governor Rick Perry has suspended the transfer of state files to IBM IT systems and fined the company $900,000 for data lost through back-up failures.

In 2005, Texas began an $863m, seven-year outsourcing contact with IBM. Currently, 27 agencies are managed by IBM or transitioning to IBM control.

In July a server crash in the state Attorney General's Tyler Medicaid fraud unit caused the loss of half the records generated during an eight-month investigation and put many prosecutions at risk. The data had not been backed up properly, Texas says. More than ten other agencies have complained of inadequate back-ups and server malfunctions in IBM-managed systems, according to local reports.

In all, Governor Perry wrote in a letter, IBM failed to back-up data properly at more than 20 agencies.

An IBM spokesman told the Dallas Morning News: "IBM takes very seriously the issues that have been reported. We are committed to helping the state to better serve its citizens through the innovative use of information technology.” ®

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