July 5, 2009
Recently, the Government Service Insurance System (GSIS) has made a number of public statements regarding issues related to the operation of its Integrated Loans, Membership, Acquired Assets and Accounts Management System (ILMAAAMS). These statements have been highly critical of IBM Philippines and its affiliates (collectively, IBM).
During IBM Philippines’ long history as a member of the business community here, its preference has always been to resolve any issues with clients in a constructive and respectful manner. Unfortunately, due to a series of sustained public attacks by the GSIS, IBM Philippines feels compelled to issue a clarification of the key facts that have been omitted from the public statements made by the GSIS. We completely reject the assertions made by the GSIS against IBM in paid newspaper and television advertisements, press releases and interviews with the media:
1. GSIS assertion
IBM refused to address the issues with ILMAAAMS caused by DB2.
IBM’s clarification
The fact is that IBM provided assistance to GSIS as soon as we were notified. Out of goodwill, IBM Philippines provided a database specialist to work with Questronix, the systems integrator for ILMAAAMS. 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.
2. GSIS assertion
For a full year, IBM has been insensitive to the GSIS’s appeals for a speedy and full technical correction.
IBM’s clarification
IBM was first notified of any issues with ILMAAAMS in April 2009. Prior to that, the GSIS had not informed IBM of any problems with its database.
3. GSIS assertion
IBM Laboratories in Canada admitted that IBM was at fault for supplying and installing a flawed database management software. By fixing the problem, IBM was admitting that DB2 was the cause.
IBM’s clarification
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.
Thousands of DB2 users globally rely on DB2 to run their most 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.
4. GSIS assertion
Both Questronix and SAP admitted that IBM’s software is the cause of the problem.
IBM’s clarification
Questronix and SAP have verified that neither party ever attributed the crashes to DB2. Questronix even issued a public statement on its website (www.questronix.com.ph (link resides outside of ibm.com)) clearly absolving IBM of any blame in the system crash. SAP in a public statement issued in May asserted that it has not commented on any other product or party with regards to the GSIS’ system.
5. GSIS assertion
Since the GSIS’ system first crashed last March, the GSIS has been experiencing "crashes" at least twice a day. To date, the special build promised by IBM has yet to be delivered.
IBM’s clarification
The IBM Toronto Lab provided special builds on May 15 and May 21 through SAP. According to Questronix, the second special build is currently operating successfully in the production environment and supporting significant workloads.
6. GSIS assertion
IBM and Questronix are responsible for the impact of the system crashes suffered by members of the pension fund.
IBM’s clarification
IBM agrees entirely with Questronix’ refutation on this point as carried in a public statement on Questronix’ website (www.questronix.com.ph (link resides outside of ibm.com)):
“… uninterrupted system availability of critical infrastructure is the responsibility of GSIS - not its suppliers or contractors. If GSIS had invested in a disaster recovery site, service disruption would have been minimized, if not entirely avoided. The fact of the matter is that corrupted back-ups made by GSIS only further delayed the restoration process and exacerbated the service interruption suffered by GSIS members. At the very least, disaster recovery services would have ensured the integrity of routine back-ups and contributed to the restoration of services. The failure of GSIS to provide the same is entirely its fault.”
7. GSIS assertion
As indicated in media reports, GSIS alleged that IBM refused to meet with them to resolve the issue.
IBM’s clarification
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.
The overall stability of the ILMAAAMS will continue to be in question until the GSIS takes steps to address the many issues impacting the system, a fact communicated to the GSIS by Questronix in correspondence dated May 15 and May 28. According to Questronix, the stability of ILMAAAMS remains at risk until the GSIS takes steps which include:
In addition, IBM Philippines believes that it will be essential for the GSIS to have appropriate support and maintenance arrangements to ensure availability of the ILMAAAMS.
At all times IBM has acted properly and with the highest levels of corporate ethics and integrity. The GSIS’ actions have forced IBM Philippines to file a suit against the GSIS for libel. We are confident that our actions will be vindicated in a court of law, and eagerly anticipate the opportunity to defend our good name.