GSIS database stability still at risk: IBM
By David Dizon, abs-cbnNEWS.com | 07/06/2009 9:30 AM
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MANILA - IBM Philippines on Sunday warned that the overall stability of the Government Service Insurance System's (GSIS) database system remains at risk until the state pension fund takes steps to address various issues impacting the system.
In a statement released on its corporate website, IBM Philippines backed authorized reseller Questronix's recommendations to GSIS to ensure the stability of its Integrated Loans, Membership, Acquired Assets and Accounts Management System (ILMAAAMS), including:
- instituting appropriate backup and recovery procedures;
- conducting appropriate performance testing and tuning in accordance with industry practice, and
- having certified personnel to manage complex systems on a regular basis
IBM Philippines also urged GSIS to have appropriate support and maintenance arrangements to ensure availability of the ILMAAAMS.
GSIS earlier sued IBM and its partner, Questronix Corp., for tort and breach of contract after allegedly providing the state pension fund with a defective software that paralyzed its operations. GSIS is seeking P100 million in damages.
In a 19-page complaint filed before the Pasay Regional Trial Court, GSIS chief legal counsel Estrella Elamparo said the damages suffered by GSIS were estimated at P5 billion, given the man-hours lost and the amount of resources spent for data recovery activities when its Integrated Loans, Membership, Acquired Assets and Accounts Management System (ILMAAAMS) crashed.
"Given the stoppage of certain transactions, GSIS likewise failed to realize substantial income from its investments," Elamparo stated in the complaint.
She noted GSIS was constrained to claim actual and compensatory damages of at least P80 million.
IBM, on the other hand, is filing a libel suit against GSIS for employing "a series of unwarranted public attacks." The company wants P200 million in damages.
"We cannot stand by and allow our company's reputation to be tarnished by blatantly inaccurate and misleading accusations (made by GSIS)," IBM said in a statement.
"We have initiated legal action to vigorously defend our reputation. Our preference is to work constructively with our clients and our business partners to address any and all issues they may have, in a spirit of mutual cooperation and partnership. Unfortunately, the deliberately libellous actions by the GSIS leave IBM with no other course of action," it added.
Highly unusual way
In its July 5 statement, IBM Philippinse rejected several of GSIS' claims that IBM was at fault for the system crash and said it was GSIS' "unusual" way of handling data that led to the crash.
It said the company provided a database specialist to work with Questronix, the systems integrator for ILMAAAMS, to fix the database mess after it was first informed of the problem in April 2009.
"Through SAP, the IBM Toronto Lab provided technical solutions (special builds) on May 15 and May 21 to address the issues related to GSIS’ database management," IBM Philippines said.
IBM Philippines also rejected GSIS' claim that IBM Laboratories in Canada admitted that IBM was at fault for supplying and installing a flawed database management software.
"IBM Laboratories in Canada did not make such an admission. IBM did not supply, design and install the system. Under an SAP/DB2 OEM arrangement, all customers receive one-stop service through SAP. Behind the scenes, the IBM Toronto Lab is fully integrated into the SAP services process. The special builds were provided to GSIS through this arrangement even without maintenance support agreements between SAP and GSIS, as part of SAP and IBM’s commitment to help resolve the issues faced by the GSIS," it said.
The company noted that thousands of DB2 users globally rely on DB2 to run critical business applications and are completely satisfied with the product.
"In this case, the GSIS deviated from common industry practices and chose to handle its data in a highly unusual way, leading to the performance issues it has been experiencing," the company said.
IBM Philippines also rejected GSIS' claims in media reports that IBM refused to meet with GSIS officials to resolve the issue, noting that IBM Philippines attempted on two separate occasions to meet with senior executives from GSIS to discuss the issues they raised.
"On the first occasion, despite representatives from IBM Philippines, SAP, Questronix, and a senior Government mediator attending the meeting, the representative from the GSIS chose not to attend. The offer of a second meeting was recently declined by the GSIS," it said.
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