London's Southwark Council has lost the court battle it initiated against IBM for selling it an inadequate software system.
The council had filed a £2.5 million lawsuit against the IT giant, accusing it of misrepresenting the capabilities of a data management software system, which was designed to consolidate the information stored on other databases.
Southwark Council had claimed that the software IBM sold was not fit for purpose and didn't work as had been advertised. The council also alleged the software was slow to update other systems.
Judge Akenhead, of the Technology and Construction Court, ruled that IBM had not misrepresented the software when selling it and that the council was fully aware of the capabilities of the software when it was purchased.
A council spokesperson said in a statement that the council would not appeal the decision and would conduct an internal review to make sure that they get the right software next time.
“This case refers to the acquisition of software back in 2006 which, in our view, was not fit for purpose. We're disappointed with the judgement but we took this action because we believed we had been missold a product. Our duty is to have IT systems that work and that save the council and the council taxpayer money,” the spokesperson added.