Gus,
Does this make any sense?
excert ---------------------------------------------------------------
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Dec. 29, 1997--Freeman Associates projects shipments of tape library
units to grow at a compounded 22% annual rate through 2002.
Robert C. Abraham and Raymond C. Freeman Jr., authors of the newly completed Freeman Report, Tape Library
Outlook, contend that the worldwide market for automated tape libraries, which totaled less than 18,000 units in 1996,
will expand from more than 43,000 units in 1997 to almost 120,000 units by 2002.
''Tape libraries already enjoy the most favored cost position of any mode of storage. Their appeal will be heightened by
forthcoming advances in the underlying storage technologies, enabling automated libraries to meet the needs of
ever-more-demanding applications,'' stated Freeman.
''Rapidly increasing demands for access to networked information may exceed the effective capability of an affordable
centralized disk,'' Abraham said. ''Automated libraries can supplement that capability, enabling fast, cost-effective
access to all files.'' The authors predict combined revenue of all classes of automated libraries to grow from nearly $2.1
billion in 1997 to more than $2.7 billion in 2002, a 6% annual rate.
''The lower rate of growth for revenue reflects a shifting mix to smaller, lower cost devices, as well as continuing price
erosion,'' stated the authors of the report, in which 10 classes of libraries based on seven tape technologies -- and
companion software products -- are analyzed and forecast in detail through 2002.
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Revenue in 1997 is $2.1 billion, units at 43,000; units at 120,000 in 2002 (3x greater, approximately), but revenue only $2.7 billion. That is some drop in margins! I just can't believe that in 2002--when, I would surmise, far nore data mining, larger and larger databases, web stuff, video and color will in use--that there wouldn't be greater demand for larger libraries. |
