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Non-Tech : Any info about Iomega (IOM)?
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To: Ken Pomaranski who wrote (42845)1/8/1998 7:39:00 PM
From: Fred Fahmy  Read Replies (1) of 58324
 
Ken,

<What matters is that anybody can enter this business, and steal sales. (no loyalty, no barriers to entry.)>

The barrier to entry in the low end removable media is an eleven million unit installed base. When I take 50 meg worth of JPEG's to my parents and inlaws, how would I exchange data with with them if I didn't have a ZIP. They all have ZIP's. Same thing with exchanging data/files with friends. I use a ZIP. They all have ZIP's. Don't you have a ZIP?? I haven't recommended (and I recommend many many PC's a year friends and co-workers) a PC without a ZIP in more than a year.

The problem with substituting a 1-2 G devices is the price of the media (which is an order of magnitude more expensive than ZIP disks). Something definitely larger than 1.44M was needed as standard removable media. However, the routine need for anything beyond 1.44-200Meg is much less significant or universal.

What about notebook compatability?? One of the best uses for ZIP is to move data between your notebook and desktop(s). This is my personal favorite use. If I am on my notebook and I download a 10M file from the internet how do I get it to my desktop. I copy it onto a ZIP. Very, very convenient. The cost of 1-2G media would be overkill for this use even if such internal devices existed.

ZIP is unique because it has 11 million users and more are installed every day. Those who don't think that ZIP has already become a defacto standard in this market segment are kidding themselves. Iomega's head start is a huge barrier to potential competition. That's why Sony's drive is flat out DOA and that's why, more than any other single reason, LS120 flopped bigtime.

The brand loyalty, name recognition, and installed base of ZIP can not be stolen by "anyone".

Good luck to all,

FF

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