news.com.com/2100-1017-877222.html
Siemens Information and Communication Networks, a division of the company based in Munich that makes telecommunications equipment, had 27 planned to use i2's Global Logistics Monitor application to set up an online order tracking system that lets employees and customers check the status of orders at any time. But last fall, Siemens found that the application did not have key features it needed, nor was it able to handle the high number of transactions the business generated. So the company decided to develop its own application, rather than wait for i2 to fix the problems. Now Siemens is deciding whether or not to use the fixed application instead of its own software, which is already in use at the ICN division, according to i2. Siemens purchased the i2 software in 2000 in a $100 million sale, the largest ever for i2. The scope of the Siemens project is vast, involving a three-year deployment of 50 different i2 applications at 100 Siemens divisions operating in 200 countries. Siemens has successfully implemented other i2 applications and is otherwise satisfied with i2's products, said i2 spokesman Brent Anderson. The problem at Siemens ICN is just a normal part of any large-scale application project, he said. Though i2 downplayed the issue, it disclosed the troubled Siemens project in regulatory filings this week as a risk related to business. Last year, i2 customer Nike 28 publicly blamed software glitches in the i2 applications for order delays and excess inventory in its footwear division that contributed to the company missing earnings targets. Following that news, i2 shares plunged, and its shareholders filed a class-action suit against the company for not disclosing problems at Nike in regulatory filings. News of the Siemens snafu follows warnings from i2 earlier this week that it expects to miss revenue targets for the first quarter.
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