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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Michael Coley who wrote (43437)	1/14/1998 4:26:00 PM
From: Naggrachi	Respond to of 58324

<<In the February 10, 1998 PC Magazine, there is a really good article about the history of the floppy and the current fight to replace the floppy>> How many articles can people wirte about the history of the floppy and where it's headed, without rehashing last months articles?? In my opinion, it's not up to the writer, regardless of what he thinks of HiFD or IOM, as whose going to be the standard. Neither one will TOTALLY own the market. What I'm looking for is a majority. Anything over 51% will do. Sure you can use HiFD, however, the compatibility issue becomes more important than ever. Thanks for the link, though. Zead

To: Michael Coley who wrote (43437)	1/14/1998 4:31:00 PM
From: Brent D. Beal	Respond to of 58324

zdnet.com Interesting link, but I'm confused by his references to Sony. Their drive doesn't exist except on paper, yet he's talking about it like it's available at Wal-Mart. From what I gather, the drive won't appear until late this year and who know what the pricing or performance will be. If we project the Zip numbers out 6 months, I wouldn't be surprised to see 2 million+ going out a month with an inclusion rate around 20%--that kind of lead is going to be hard to surmount, yet this fact isn't given much attention in the article. He says he's betting on Sony? How can you bet on somebody that not even in the game? On the other hand, as mad I was yesterday, this article indicates just how unaware people are about IOM and the inroads that the Zip has made. I think we might just get that nice pop in the stock price once IOM puts out their numbers since people like this guy are bound to be "surprised" by information that been discussed here for the last 2 months.

To: Michael Coley who wrote (43437)	1/15/1998 2:29:00 AM
From: Michael Coley	Read Replies (6) \| Respond to of 58324

RE: Dvorak - The Fight to Be the New Floppy Disk My reply to John Dvorak's column. zdnet.com Mr. Dvorak, First, I wanted to congratulate you on the tremendous job that you did on your article "The Fight to Be the New Floppy Disk". It is probably the most fair analysis of the situation that I have seen to date. In it, however, I feel that you give Iomega somewhat less credit than they deserve. In your article, you feel that Sony is the best bet, but I think you might have arrived at a completely different conclusion if you were a little more familiar with Iomega. Let's take a look at the players. You mention Zip, LS-120, and HiFD. In doing so, you (by exclusion) eliminate many other small competitors. I would agree with that. The others either don't have the product, marketing clout, resources, or distribution channel to replace the floppy. What you don't make very clear, though, is that the HiFD is not yet released. It was introduced as a "technology release" only. A product release should soon follow, but they will be fighting firmly entrenched companies. I really enjoyed reading your history of the current floppy, its replacement of the 5 1/4", and the failed replacement attempts. What you don't point out, however, is that the market is completely different now. The 3 1/2" floppy has already been replaced in virtually every one of its historical functions. Software distribution is typically done on CD-ROM now. Small files are often e-mailed. Backups are often done on tapes. You mention that HP and Apple were early adopters of the 3 1/2" floppy. Both offer Zip as a standard feature on several of their models. In fact, there are rumors that Apple will be making Zip standard across their entire line. Micron has already taken this step. Iomega is aggressively pursuing the OEM market. As of September, 1997, Zip was included as a standard feature in 145 different SKU's from 35 different companies. Even Compaq, Sony and NEC have SKU's that include Zip as a standard. Scores more offer Zip as an option. You mention backwards compatibility as a feature that people will flock to in the Sony HiFD drive. This is a feature that LS-120 has offered for over a year, but it hasn't been as big of a drawing point as many had hoped. Everyone already has a 3 1/2" drive. I'm sure you remember the drives that accepted both 5 1/4" and 3 1/2" disks. They never caught on. Also, backwards compatibility implies a more complex and expensive drive. You mention that the Sony HiFD drive will be about the same price as Zip and the LS-120. This is the first that I've heard of Sony HiFD pricing. How much will it be? I'm sure that you're aware that Zip can be found at prices much less than their retail price of $149. I've seen externals as low as $89 and internals as low as $65, now that Zip is off of MAP. I have heard rumors that OEM prices could be even lower than this. You mention that through Sony's licensees, they could flood the market overnight. This may be true, but the demand must be there first. Observe what happened with the LS-120 consortium when they got caught with too much inventory. MKE took a $50 million write-off for LS-120 dead inventory. You mention that Fuji is signed on with Sony. Fuji is also the media provider for Iomega. Kim Edwards, the CEO of Iomega, stated in the last analyst conference call that their relationship with Fuji will not be affected when the new Sony product becomes available. Also, Fujifilm uses Zip in the Digital Imaging Workstation. Iomega has now shipped over 11 million Zip drives, and is adding another million to that count monthly. Licensees should start producing Zip's early this year, greatly expanding production capacities. A recent survey reports that Zip inclusion rates are now at 7%. Iomega successfully grew from a $150 million company (1994) to a $1.2 billion company (1996) faster than any other company. This year will probably come in at more than $1.8 billion. (Check 1/22/98 to see!) OEM penetration has grown at a phenomenal rate, and has been a major emphasis of management. If you're looking for the 3 1/2" to disappear, I think your 5-6 year estimate is a fair one. If you're looking for the victor in this battle over removable storage, I think it'll be clear to the general public in less than 2 years. To me, it's clear now. Sony need not even show up. - Michael Coley - i1.net