IBM's Tiny Storage May Threaten Flash Memory
June 18, 1999
Filed at 7:46 p.m. EDT
By Mark Hachman for Electronic Buyers' News, CMPnet
Analysts and OEMs are puzzling over what IBM's unique, postage-stamp-size disk drive will mean to established storage technologies in portable applications, now that the company is shipping 170- and 340-megabyte models.
IBM disclosed the Microdrive's existence several monthsago, but withheld critical power-consumption and pricing information until now. And while the technology is impressive enough, analysts say the company's privately expressed commitment to doubling the Microdrive's capacity annually for the next three years will be the real story, potentially offering more than 1 gigabyte of storage in 2001.
Although the $499 340-megabyte Microdrive seems roughly comparable to SanDisk's CompactFlash card, analysts say the IBM device will likely carve out a niche between the flash-based CF Card and the PC Card-the playing-card-size form factor commonly found in notebook PCs.
On the surface, the Microdrive would seem to compete directly with flash memory, especially since it conforms to the CF standard's physical dimensions. With an adapter, it can also fit into a PC Card slot.
"Microdrive works where flash capacity cannot be had or is too expensive," said Martin Reynolds, an analyst at Dataquest, in San Jose, Calif. "Generally, flash is better -- if you can get enough of it and you can afford it. But there is no such thing anywhere as 340 MBs in a [CompactFlash Type II] slot except with the Microdrive."
Also purchasing the Microdrive are several companies that use flash as data storage, according to IBM, including Compaq, Casio, Diamond Multimedia (which makes the Rio MP3 player), Eastman Kodak, Minolta, Nikon, and Samsung.
"In some cases, designers and end users who are using high-capacity flash memory will find it to their advantage to substitute Microdrives for flash cards," said John D. Osterhout, director of worldwide marketing for Microdrive products at IBM's Storage Systems Division, San Jose. "To a large degree, though, we think it will be new products and new applications that will drive Microdrive growth."
Analysts say two likely drivers of that growth will be the continued expansion of the professional digital-camera market, as it tries to shoulder aside decades of film-based cameras, and high-capacity data backup for notebook computers.
Today, for example, photojournalists desperate to make deadlines require a storage format that can store megapixel images and transfer them quickly and easily, said analyst J. Gerry Purdy of Mobile Insights, in Mountain View, Calif.
IBM's redesigned motor and spindle allow the Microdrive to spin up to writing speed in less than a second, so pictures can be taken almost instantaneously. According to both IBM and analysts, the drive's power consumption is low enough for the device to run on a pair of AA batteries.
"Notice, too, that the [Microdrive's 5.04 gigabits per square inch] is pretty small compared to notebook offerings," Purdy said. IBM chose instead to maximize the drive's non-operating shock tolerance. "By doing that, they can prove it out and add higher capacities later," he said.
The Microdrive will likely take on the same role as high-capacity floppy drives in notebooks, according to Purdy, replacing Iomega's Zip and Imation's SuperDisk (LS-120) for backup storage. And even IBM was forced to reassess its new creation, he said. "When they were selling this internally as consumer film ... they found that it had more value in traditional notebook markets," Purdy said. "That wasn't part of the original plan."
A spokesman for Sunnyvale, Calif.-based SanDisk said a 192-MB version of the CompactFlash card will ship this fall.
(c) 1999 CMP Media Inc.
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