EMC's RSA unit contends with uproar over NSA allegations

Reuters reports the NSA "arranged a secret $10 million contract" with EMC's RSA security hardware/software unit with the goal of creating an encryption backdoor that wound up being distributed via RSA's Bsafe cryptography libraries.

RSA denies entering into a secret contract, and says its "explicit goal has always been to strengthen commercial and government security." But the company doesn't deny taking money from the NSA. GigaOm: "So who’s telling the truth here? Potentially everyone (barring the NSA, of course)."

Several current/former RSA employees tell Reuters the company was misled by the government, which portrayed the random number-generation algorithm featuring the backdoor as a "secure technological advance." RSA urged its clients to stop using the algorithm in September, after the first reports of a backdoor emerged.

RSA has been a bright spot for EMC as the company deals with slumping storage hardware demand. RSA's sales rose 11% Y/Y in Q3 to $250M.

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Comments (3)
  • PeakOiler
    , contributor
    Comments (299) | Send Message
    "So who’s telling the truth here? Potentially everyone (barring the NSA, of course)." Glad to see you are with the program SA, I have renewed my faith in you. Governments around the world lie their lying asses off. And most news agencies report their lies as gospel.
    23 Dec 2013, 06:52 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3868) | Send Message
    Apparently the market agrees. The story was reported on Bloomberg before the open,and EMC closed up 2.16% today.
    23 Dec 2013, 07:55 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    IN THE FUTURE...all USA companies will be shunned in the global marketplace because of this....no one will trust them anymore...I would not buy our equipment..knowing I was going to be spied on with it...
    23 Dec 2013, 09:06 PM Reply Like
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