Reality: It Falls on Backdaters and Data Losers
Grade: A
The storage industry and regulators made a lot of news together in 2006. Organizations such as National Association of Securities Dealers (NASD) and New York Stock Exchange (NYSE) Regulatory Inc. handed out a slew of fines to organizations that failed to properly manage email and other electronic records.
There were also changes to the Federal Rules of Civil Procedure (FRCP), which govern lawsuits. New rules that took effect December 1 change the way firms must manage their records and have storage vendors falling over themselves to offer their assistance -- at a price.
Storage vendors also came under the whip for a different legal issue. The SEC and federal government crackdown on companies that improperly accounted for backdated stock options hit the storage industry hard. Former Brocade CEO Greg Reyes and human resources VP Stephanie Johnson were indicted, and AMCC, Broadcom, CA, Dell, F5 Networks, Marvell Technology Group, and Vitesse have also come under investigation.
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