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EMC Slides Down Poll

Another day, another piece of bad news for EMC Corp. (NYSE: EMC).

Trauma du jour: EMC has lost its lead in "user satisfaction" to the new kid on the block, Hitachi Data Systems (HDS), according to a survey out today from Wit Soundview. Pricing appears to have been the companys downfall, the report says.

Wit Soundview conducted the survey of 350 companies at the Gartner/Dataquest
storage conference last month. Of the 64 valid responses, mainly from financial and government institutions, the brokerage firm found that EMC’s low ranking was due to its policy of pricing substantially above its competition. (The text of the survey is available at http://www.hds.com/pdf/WIT2001survey.pdf.)

Since then, the storage giant has slashed its prices in an effort to win back mindshare (and marketshare). But “this won’t cure the whole problem," says Gary Helmig, analyst with Wit Soundview. “Users are looking for an alternative to keep EMC honest.

“The intriguing thing is how far HDS has moved up the survey,” he adds. No fewer than 100 percent of respondents said their view of Hitachi had improved over the year. “They have a leading product and clearly people are recognizing it."