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Non-Tech : Any info about Iomega (IOM)?

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To: Patrick Keeler who wrote (6847)9/3/1996 1:10:00 AM
From: Young D.T. Nguyen   of 58324
 
Patrick, Thanks for sharing your excellent insights on IOMG. Look like
you have done quite a bit of homework. I couldn't agree more... IOMG 's
longterm outlook is great and full of surprises.

I think IOMG has done a super job on retails and aftermarkets - couldn't
be done better, IMO. However, I am a bit concerned about sales to
businesses/corporations and government. I am not sure of IOMG 's
marketing strategy on this very important front. I think it is critical for IOMG
to establish strong sales to businesses/corporations for Zip to become
a standard, and to close the back door on the LS120 and the Mitsumi
drives. Businesses/Corporations are the only hope for Compag to establish
a large LS120 market vs. the Zip. And I think IOMG is quite vunerable here
since they do not have direct access to businesses and corporations
like Compag or Mitsumi.

My company just decided to upgrade hundreds of computers with Compag
PC (probably Compag gave them a good deal). No LS120 yet on these
computers, but my company still has thousands of computers to upgrade in
the next 1-3 years. Compag could have included the LS120 and my company
would have gladly paid for them at the $220 price. And the people
who got the upgrades would have loved the LS120 because of the extra
capacity. Next thing you know, the domino effect kicks in: They and their
friends would go out and buy LS120 for their home systems; companies doing
business with each others decide to buy LS120 for compatibility reasons.
And suddenly, the LS120 can become a real threat to the Zip for reason
other than price/performance. (I think this is basically how Microsoft won
on the software wars with inferior products in many cases - the domino effect
starting with sales to businesses. Compag may have learned this lesson well.)

I think people who make purchasing decisions in large corporations are quite
ignorant of the Zip and probably don't care whether they pay $100 more
for less performance (as in the case of my employer). Their purchasing
decisions will be based on discussions with Compag sale reps, etc., and all
Compag has to do is to convince one key person in the purchasing Dept. to
go with the LS120 - and hundreds and perhaps thousands of LS120
would be sold at one sitting. Then the domino effect kicks in....

I also strongly believe that businesses/corporations and government will
buy many many more Zip disks per drive (20-50 is my estimate) than
the home PC users - since valuable data and information are being generated
and kept in great volume each day. (I know this first hand). More reason
for KE and IOMG to focus more sale efforts on this front through OEM contacts.

OEM sales to businesses and government (Dell, HP, IBM, etc.) will be a critical
factor to watch in the next 1-2 quarters. Anyone here know of IOMG 's marketing
strategy to businesses and government?
Thanks. Young
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