I was a VP at EMC's biggest competitor, Hitachi Data Systems. (Yeah, I know you guys think it's IBM; just goes to show how little you know about enterprise storage.)
I read the article, and it looks like same-o, same-o to me. You get a new model that develops a serious intermittent problem. You diagnose by changing out components and units to isolate the defect. Once you figured out what was buggy, you come up with a correction plan (longterm) and a band-aide (short-term.)
Sounds like that's what happened here. Quoting from the article:
" State officials say they have no idea whether EMC initially provided them with an older unit containing a defective chip because EMC technicians worked on one malfunctioning computer many times and may eventually have upgraded it by replacing key components.
However, they dispute Wade's claim that EMC defrauded the state out of $250,000 because they said they never paid additional money for the upgraded model after EMC charged the state about $1.7 million for two Symmetrix units.
"We believe, from all indications, we got everything we ordered," said Walt Callahan, Ohio's deputy chief information officer...."
The state rep subsequently confirmed that "There have been no crashes in recent months."
EMC might not have been open and above-board in telling the customer about the chip defect immediately, but it sure doesn't look like fraud. More like bad PR.
Now, someone tell me how a $1.7MM transaction where $250,000 is at issue (never paid), is going to bankrupt a company with $7BB in cash.
BTW, if the defect was so bad, why was it reported in just these few installations?
Do you really think all this bad publicity is really true ? Bank One stated that EMC demonstrated the highest level of performance in quality, integrity, delivery and innovation. Read the following concerning Bank One's relationship with EMC in year 2003 :
EMC Receives Bank One 2003 IT Supplier of the Year Award
Hopkinton, Mass.- Thursday, January 22, 2004
EMC Corporation announced today that Bank One named EMC "2003 IT Supplier of the Year" at its Information Technology Supplier Event, held at Bank One Plaza in Chicago.
The IT Supplier of the Year Award recognizes one Bank One IT supplier that has demonstrated the highest level of performance in quality, integrity, delivery and innovation.
The winner must exhibit "best-in-class" performance in several key areas, including back-office compliance, service-level agreements, account team and supplier personnel, diversity, and satisfaction with products and services.
"EMC's dedication is helping Bank One become a world-class organization," said Joel Spieth of the Enterprise Midrange Group at Bank One. "They provide us with high production availability, and service, and their account team is always looking for savings opportunities for Bank One. They work hard to understand our business, and deserve to be honored as the 2003 IT Supplier of the Year for Bank One."