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Non-Tech : Any info about Iomega (IOM)?
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To: Rocky Reid who wrote (37839)11/30/1997 2:01:00 PM
From: Neil Kalton  Read Replies (1) of 58324
 
Rocky,

>>In case anyone doubts that other computer makers would be hesitant to make a proprietary device like Sony HiFi standard, I have one word to say: Intel<<

I'm not sure I completely agree with your logic (though what else is new!). To the best of my knowledge Intel is not a box maker at all, it is an independent supplier of computer components. It does not compete with box makers at all. I would imagine that with Intel's brand name and awareness it could quite easily enter the computer manufacturing business and have some success. But Intel hasn't done this. Why? Probably one reason is because it doesn't want to piss of its customers by entering into direct competition with them. What customer wants to (a) be reliant on a direct competitor for core parts and (b) fill the direct competitor's pockets?

This is one reason why IOM was never bought out when its share price was overly beaten down. An independent IOM is a potentially very valuable company. An DELL owned IOM is not as valuable. Would GTW and CPQ be so quick to incorporate Zip drives in their systems if to do so would ultimately benefit DELL?

For me, this is another obstacle Sony faces in getting the HiFD drive standardized (besides the 18 million or so Zips that will have been sold by the time the Sony drive hits the market). Sony has aggressively entered the box making business in the past year. Sony is not some also-ran with limited prospects in this field. It has, arguably, the best technology brand name in the world and you can bet that the other box makers are very aware of Sony's presence. I suspect the CPQ's, DELL's, and GTW's of this world are going to be very cautious about incorporating a Sony drive into their systems. Much more cautious, I would think, than standardizing on an Intel chip.

-nk
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