Feeds

EMC sues Donatelli over HP move

To compete or not to compete

Maximizing your infrastructure through virtualization

EMC and its ex-executive VP David Donatelli are entangled in legal disputes over him joining HP and competing with EMC.

Donatelli suddenly resigned from his position as president of EMC's storage business and is set to join HP on May 5th as an executive vice president in charge of its servers, storage, and networking. He has filed a law suit in California that attempts to render a non-compete clause in his EMC employment contract null and void.

EMC then retaliated by filing its own suit in Massachusetts that would enforce the non-compete clause and prevent him joining HP.

EMC spoksperson Michael Gallant said: "Mr. Donatelli's key employee agreement with EMC contains a non-competition clause and other protections that we intend to enforce."

A non-compete clause typically aims to limit a key employee's freedom to take a job with a competing firm and disclose trade secrets, customer information, and so forth. The two firms have to be rivals for the non-compete clause to apply. In the case of HP (which makes and sells storage hardware and software, amongst other things) and EMC (which also makes and sells storage hardware and software), that would seem to be incontrovertible.

The legal support for non-compete clauses varies in USA states. California, for example, where Donatelli is suing EMC, does not uphold them at all. But Massachusetts does.

In 2001, EMC won a non-compete law suit in Massachusetts against Doron Kempel who was leaving EMC to become CEO of SANgate Systems. He had to wait almost a year before taking up his appointment. Kempel later became chairman and CEO of a deduplication vendor, Diligent, which was acquired by IBM, where he now works.

Donatelli is a 22-year EMC veteran with intimate and up to date knowledge of EMC's operations, storage roadmap, partnership with Cisco, strategies concerning VMware, and product and technology roadmaps. Knowledge that would be intensely valuable to HP.

These legal moves must surely have been foreseen by HP's legal counsel as part of the due diligence involved in the recruitment of Donatelli. An HP spokesperson said: "HP does not comment on other companies' litigation."

Maybe Donatelli will relocate to California. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.