I thought I would post the following article, since it highlights an important difference between Qntm and the other disk drives co's.. (Something the Steet forgets during a selloff.)
September 29, 1997, Issue: 756
Section: Channel Assembly
Goal:20 GBytes Data Per Media Surface -- TeraStor, Quantum team up
By Kelly Spang
San Jose, Calif. -- As a new kid on the block, storage start-up TeraStor Corp. is teaming up with a company that knows the ropes:Quantum Corp.
While TeraStor has yet to release products based on its Near Field Recording technology, the San Jose-based start-up is lining up component suppliers-and more recently a drive licensee-in preparation for its push to begin shipping in 1998.
A licensing agreement was unveiled earlier this month between TeraStor and veteran drive manufacturer Quantum, the only drive licensing agreement TeraStor expects to ink.
"This will give [VARs] alternative sourcing," said Jim McCoy, chief executive of TeraStor.
Near Field Recording technology will enable TeraStor to offer VARs a solution that initially will store 20 Gbytes of data per media surface. This technology combines elements from both hard drives and optical storage, enabling TeraStor to pack more bits per square inch.
The flying-head technology, which is a modified version of the head normally found in hard drives, involves co-exclusive patent rights granted to TeraStor by Quantum. The basic technology was developed by Digital Equipment Corp. and was acquired by Quantum as part of its acquisition of Digital's storage business.
Quantum, Milpitas, Calif., will jointly develop products with TeraStor based on TeraStor's Near Field Recording technology. Quantum will license TeraStor's initial removable drive product, which to date still has not been disclosed.
McCoy said the company is on pace to introduce prototypes of its products at the end of the year and to begin production early next year.
Quantum also will jointly develop a version of the TeraStor technology targeted toward use in robotic libraries. In addition, Quantum will have the right to develop, manufacture and market future products based on TeraStor technology.
"This licensing and joint development partnership is vitally strategic to TeraStor," McCoy added.
Quantum helped fund TeraStor as the company made its start in developing high-capacity storage in 1995. In conjunction with the new licensing agreement, Quantum said it will make an additional equity investment in TeraStor as part of this expanded relationship, though Quantum officials refused to disclose the sum of the additional investment.
"We see this [TeraStor partnership] as a start to [tap into] a significant part of the market which we haven't before now," said Michael Brown, Quantum chief executive.
From Quantum's perspective, Brown said Quantum can leverage products based on TeraStor technology to provide VARs with a tape offering geared more toward the lower end of the market than its current DLT products.
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