I\'ve done a search on this subject already, and have found the same data over and over-- a review of the three different types of sessions. (InProc, Sql, StateServer) Howev
Firstly, you colleague is implementing his own DB backed session management system, I do not see what advantage this has over using built in session state stored on a database (MS SQL is the default, there is no reason not to use Oracle instead).
Is his solution better than the built in one? Unlikely. It's way more work for you for a start. Here's a simple illustration of why. Let's say you use cookies to store your ID, how do you cope with a user who turns off cookies? If you are using ASP.Net's session state there's no problem as it will fall back to using the query string. With your colleagues idea you have to roll your own.
There is a very valid question as to whether you shold have session state at all. If you can design your application not to need any session state at all you will have a much easier time scaling and testing. Obviously you may have application state which needs to live beyond a session anyway (simple case beign user names and passwords), but you have to store these data anyway regardless of whether you have session state.
My experience has been that the session is a good means of managing state when you use it appropriately. However, often times it's misused, causing the "never ever use the session" sentiment shared by many developers.
I and many other developers have ran into major performance issues when we mistakenly used the session to store large amounts of data from a database, so as to "save a trip." This is bad. Storing 2000 user records per session will bring the web server to its knees when more than a couple of users use the application. Session should not be used as a database cache.
Storing an integer, however, per session is perfectly acceptable. Small amounts of data representing how the current user is using your application (think shopping cart) is a good use of session state.
To me, it's really all about managing state. If done correctly, then session can be one of many good ways to manage state. It should be decided in the beginning on how to manage state though. Most often times, we've run into trouble when someone decides to just "throw something in the session".
I found this article to be really helpful when using out-of-process modes, and it contains some tips that I would have never thought of on my own. For example, rather than marking a class as serializable, storing its primitive datatype members in separate session variables, and then recreating the object can improve performance.