coondoggie writes "Looking to avoid what would have been a costly and likely lengthy court battle IBM and the state of Texas's Department of Information Services have apparently agreed to disagree over a failed $863 million data center consolidation pact. Published reports indicate that under an agreement, IBM will transfer $20 million worth of equipment already installed to the state and forgo $26 million worth of billing for work it has already done. For its part, Texas will pay in total about $35 million owed to IBM for the cost of services and equipment. As of February, Texas had paid IBM almost $758 million and assessed the Big Blue $10 million in penalties for failing to meet certain contract requirements."
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