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Technology Stocks : Ampex Corp: Digital Storage
AMPX 11.31+4.6%Nov 28 12:59 PM EST

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To: Gary Schneekloth who wrote (2302)3/14/1997 2:11:00 PM
From: Glenn Perry   of 3256
 
In regards to TeraStor announcement:
1. The don't have a product yet.

2. They aren't releasing any specific performance data.

3. They don't know what it will cost, since they haven't manufactured production quantities. I'm sure drive manufacturers didn't expect MR head design to be as expensive to ramp up as it actually turned out.

4. You won't find one inside your average PC anytime soon. Especially if you can buy a better performing, reliable magnetic drive cheaper.

5. It will take years of in-service operations with their design in order for TeraStor to claim the reliability experienced by current magnetic drives that have been around for a long time.

6. Think about how long it takes to design, test, produce, and market one of these drives. The negotiations with whoever will actually produce these parts will take many months.

7. What about the density? Is the data stable over time? Ever hear of magnetic thermal degradation? The more bits you cram into an area, the worse it gets. Will their data remain intact over a period of several years, or even months?

Look at the bigger picture: Will this drive be able to compete in the mass storage/backup market with Ampex's DST/DCT's on a per megabyte basis, considering speed, simplicity, reliability, transfer rates, access times, and cost? Tape is cheaper, you can bet on that.

I personally don't think hard drives as we know them are going to just disappear within the next 5 years just because a new product is announced with little if any real data to back up their claims!

Is it just me, or does anyone else have doubts concerning the TeraStor announcement?
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