isham research
Received - unsolicited - on 15 August 2002:
To EMC's Global Industry Analyst Community,
Last week (Wednesday, August 7th), eWeek reporter Evan Koblentz issued a story (below) that "pre-announced" our new CLARiiON CX600 (public announcement August 12). EMC Public Relations had previously offered to brief Koblentz on the announcement under a press embargo agreement (similar to our Non Disclosure Agreement that you all work under).
Koblentz did not accept EMC's press embargo agreement and declined the briefing. He then proceeded to seek other sources that would allow him to be the first to reporter to cover the announcement. The resulting article included information that strongly suggests Koblentz received information directly from the EMC presentation used in our analyst briefings. This presentation described and named future Clariion products, and was the only EMC launch presentation to do so.
This article not only disrupted the marketing efforts for the CX600 announcement, its inclusion of information about future members of the CX family has also damaged our go-to-market plan as well as those of our channel partners.
What is most disappointing is that Koblentz avoided entering into an NDA and got the story from someone who appears to have breached his or her NDA. This is unconscionable.
A number of you called to tell us that you had been contacted by the press seeking comments and material regarding the announcement and either sought our guidance concerning that contact, or declined due to our NDA. For this, we are very appreciative.
With your encouragement, EMC is far more forthcoming on future product direction than we had been in the past. This candor has been mutually beneficial. But it is now in danger.
I trust the vast majority of you, and you know that. I want to provide the analyst community as much information as early as possible, especially as EMC continues its product introduction momentum. So, I need your help.
My instincts tell me that I have one bad apple. Help me identify that person so that we can continue the mutually beneficial early and candid exchange of information.
In the meantime, let me remind you that as to NDA information, you are not permitted to discuss this information with the press or anyone outside of your immediate analyst organization or EMC. This includes, but is not limited to, confirming or denying information. Any exceptions to these clear rules must be worked out in advance with me or other individuals in the AR department. You will find a copy of our current NDA agreement attached.
Let me make it clear, I want the name of the analyst who breached his or her professional integrity and NDA. If this was a mistake or lapse of judgment let me know, and we will work something out. If you feel that you cannot honor our NDA agreement, or do not feel comfortable having EMC NDA information in your possession, please identify yourself to our team, and we will remove you from notification of advanced information. I look forward to your immediate response.
Steve Bardige
Director, EMC Analyst Relations
508-435-1000 x76140
This letter came as a surprise. isham research had signed no NDAs with EMC, did not take part in the teleconference, did not download the privileged materials, and did not even comment on the announcement when it was made. However, since the email demanded an immediate response, we sent one:
Please remove us from EMC's mailing list.
That seems to have worked. The hope, of course, was that EMC would realise its arrogance was misplaced - especially after its CEO Joe Tucci's embarrassment last year and EMC's 3Q02 hardware sales figures - and would relent and apologise. The more so because industry sources have identified a senior EMC executive on his cellphone and not an analyst as the source of the original leak. No such luck - instead they have decided to extend their bullying to the financial analysts - "Play Nice - Or Else" by Daniel Lyons in Forbes Magazine can be read online by subscribers - a copy on Yahoo will doubtless disappear soon:
It was just one example of what these analysts--all talking anonymously, of course--say is a ratcheting up of EMC's tough-guy tactics. More recently, an analyst who was quoted in a trade magazine criticizing EMC got an irate call from an EMC guy who hissed, "You should be prepared for further action on our part."
It now seems that even investment banks are not safe.
The original email appended Evan's article:
EMC to Roll Out Sixth-Generation Clariion
By Evan Koblentz
Including it in this page would breach eWeek's copyright - you can read it on wWeek's website. The models predicted in the article all now seem to be on the market, with the CX200 having been announced on 28 October 2002. It may indeed be that EMC's "go to market" strategy was affected by this leak.