WorldCom's integrity failure of its network and the disruption of the NASDAQ market on Friday, June 29 seems to indicate weakness it its basic organization of its network, not some external attack, act of God, or accident.
I focus on the quote "...caused during routine testing of a development system for Nasdaq..." The full press release is included below.
The integrity of a system depends on procedures and barriers separating development and test systems from production systems. The system administration failed.
Early reports placed blame on a "technician." This official WorldCom press release points to serious procedure problems, not the infamous catch all "human error" that so many use to cover up organizational problems.
Statement of WorldCom, Inc. on Nasdaq Network Service Interruption CLINTON, Miss., June 29 /PRNewswire/ -- WorldCom, Inc. provides network services to the Nasdaq Stock Market, Inc. Today, Nasdaq experienced a service interruption at approximately 2:31 p.m. EDT that affected the quality of stock quotations and resulted in the suspension of Nasdaq's SOES and SelectNet trading systems. All service to the network system, supplied and managed by WorldCom, was restored at approximately 3:33 p.m. EDT.
WorldCom's preliminary investigation into this issue indicates that it was apparently caused during routine testing of a development system for Nasdaq and resulted in the service interruption. WorldCom is continuing its investigation. Additional details will be made available as they are known.
Said WorldCom, Inc. CEO and President Bernard J. Ebbers, ``We very much regret this market interruption. For nine years, Nasdaq has been a valued customer. We have resolved this issue and will continue to work with Nasdaq to take all steps necessary to ensure it does not recur.''
SOURCE: WorldCom, Inc.