September, 1996

by Sindy Atoms

One of the most respected reporters in the data storage field, Sindy will be here every month with an inside look at the data storage industry.

While Quantum and Hewlett-Packard were spreading there share of blue news to the industry last month, IBM seems to be spreading green, as in cold hard cash. Big Blue is pumping $380 million into disk drive manufacturing plants in an effort to catch up in the magneto-resistance head market. While the company already makes the MR heads, it is now expected to sell these on the open market next year. Earlier this year the company dropped $500 million, big money even for them. New people, new places. Maxtor seems to be slowly changing its management team. Last month Michael Cannon was named president and chief executive, replacing C.S. Park, who takes the role of vice chairman. Now two more top dogs in and one out. Paul Tufano, formerly of IBM's storage group, has been appointed veep of finance while Phil Duncan has joined the company as veep in human resources. But to off set the imports, Patrick Verderico, Maxtor's chief operating officer, has left the building. The fighters are taking their corners.

Compaq has expanded the number of systems it ships with the LS-120 when it launched its Deskpro line. It now has six systems supporting the storage format, up from two. All the while Iomega continues its slow drive to gain more partners for its Zip drives. Seagate is the latest to align itself when it announced that it will build Jaz drive cartridges. With Packard Bell, NEC, Hewlett-Packard, Acer and even Bandai Digital Entertainment Corp. supporting Iomega's Zip drive, a widening split is developing in the PC industry. While I believe that standards are a good thing for the industry, I am enjoying the emerging standards fight between the LS-120 and Zip camps. Its been too long since this happened. While the industry gives a great deal of lip service to letting market dynamics determined what is successful and what fails, it rarely happens. And of course you remember Compaq's ACE consortium and its move away from Intel? Oh, you don't? First you set standards, then you make logos. The CompactFlash Association has a certification program to ensure interoperability between all CompactFlash cards. That's good news for all of the digital camera users who use flash for storage. The question is, everyone has seen a digital camera, but know anybody that uses one? No I don't either. But this market (small card not camera) is also facing its share of turmoil. Besides the CF standard there is also the Solid State Floppy Disk Card, the Miniature Card, and the Small PC Card, all headed down different paths.

One who is being left out in the cold these days is SyQuest Technology, which reported a very poor quarter with a net loss of $41 million, due in part to the poor performance of its EZ 135 product line. Departing the company was founder Syed Iftikar, from its board. However SyQuest did unveil its SyJet removable storage solution, which in a 3.5-inch from factor can store 1.3G-bytes of data.

The views expressed in this column are soley those of the author and do not necessarily reflect the opinions or position of TDK.

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