IBM getting out of hard drive biz

[boeingfixer]

Hey gang,

Saw this at the Inquirer, seems IBM is getting out of the Hard drive buz. No more Dethstars. Read the thread in "Storage Mainia" to fully understand if you don't know what the "Other" Deathstar is :evil:

IBM getting out of hard drive biz
By Mike Magee, 17/04/2002 09:09:24 BST

HITACHI IS TO ACQUIRE 70 per cent of IBM's hard drive business, the Wall Street Journal reports.
Although it's unclear how much Hitachi will pay for this big slice of IBM's hard drive business, the newspaper speculates it's in the region of $1 billion, with the HDD unit worth around $3-$4 billion a year.

Full story here

IBM Hard Drive story

And the Register's take here The Register

Enjoy

 

[lokem]

I'm sure Hitachi will use some of IBM's technology in hard drives after the acquisition.

Now what will IBM focus on after this? Software applications? (e.g. WepSphere)

 

[boeingfixer]

Originally posted by lokem
I'm sure Hitachi will use some of IBM's technology in hard drives after the acquisition.

Now what will IBM focus on after this? Software applications? (e.g. WepSphere)

That would be my guess too, seeing the article also mentioned that they are getting out of the hardware business.

After my experiance with IBM let's hope that Hitachi does a better job at customer service.

 

[lokem]

Originally posted by boeingfixer


That would be my guess too, seeing the article also mentioned that they are getting out of the hardware business.

After my experiance with IBM let's hope that Hitachi does a better job at customer service.

What other stuff does IBM produce anyway?

I can't comment on IBM's service coz I haven't owned one of their hard disks

 

[boeingfixer]

Well hardware wise, I am not sure if they are talking about Desktops, Laptops, Monitors, Servers. Just don't know ??

Here is a full line of what they make.

IBM Products

 

[SuperCheetah]

Well, good luck to them I guess. I own 2 of the so called Deathstar, but haven't had any problems, yet (fingers crossed). I hope Hitachi does a better job harnessing the technology and with fewer problems than IBM did.

On a side note, IBM is big into the server business. This is their main product line I believe. But all in all they have their nose in everything since they've been around for so long.

 

[Phantasm66]

Oh, man! So what happens to the warranty for my 5 IBM Deskstars!

Never mind, I will swap them for Maxtors at work and I bet no one is any the wiser.....

 

[SuperCheetah]

Originally posted by Phantasm66
Never mind, I will swap them for Maxtors at work and I bet no one is any the wiser.....

LMAO!!! That's a classic! I have 2 of my own so I feel your pain. No more support for my Deskstars wait I've never gotten any anyways!!!

 

[Phantasm66]

Originally posted by SuperCheetah

No more support for my Deskstars wait I've never gotten any anyways!!!

What Deskstars??


Never underestimate the power of Drive Image ( www.powerquest.com )

 

[SuperCheetah]

Originally posted by Phantasm66

What Deskstars??

Did I say Deskstars, silly me of course I meant Deathstars!!!

I know the goodness of Powerquest. I have PartitionMagic 7.0 Pro on my comp now. Saved me many a time!

 

[T-Shirt]

Originally posted by boeingfixer
Well hardware wise, I am not sure if they are talking about Desktops, Laptops, Monitors, Servers. Just don't know ??

Here is a full line of what they make.

IBM Products

IBM doesn't make anything, but highend mini/mid/ and mainframes anymore.
Everything else is built outside a badged as IBM.

 

[boeingfixer]

I don't doubt you "T" but why then would they be getting out if all they do is stick their name on things ? I wish I could tell IBM where to stick my two paperweights on my desk with their name on them. Yes I mean my two Dethstars !! :evil:

 

[uncleel]

IBM posted the news release on the 16th.

Originally posted by boeingfixer
IBM getting out of hard drive biz ???
IBM hands over HDD biz to Hitachi???

I heard the news on the lunchtime business report, & reliable business sources said, "IBM to consolidate HDD business with Hitachi" which has a different connotation than getting out of the HD business.

So I went straight to the horse's mouth. IBM

Hitachi And IBM Agree To Strategic Storage Alliance
Plans Call for Combined HDD Operations, Collaboration on Systems Interoperability
http://www916.ibm.com/press/prnews.nsf/jan/4B33EA877A332CA585256B9D00761267
TOKYO, Japan and ARMONK, New York -- April 16, 2002
Hitachi, Ltd. (NYSE:HIT, TSE:6501) and IBM today announced plans to form a strategic business alliance designed to accelerate the delivery of advanced storage technologies and products to market.

In addition to, and separate from, the systems alliance, the two companies intend to combine various hard disk drive (HDD) operations into a new standalone, joint venture company, integrating their world-class research, development and manufacturing operations, as well as related sales and marketing teams. Upon completion of negotiations, Hitachi is expected to hold 70 percent of the joint venture and make a payment to IBM for its HDD assets.

Possible reason? Business!
Quote: "Lackluster results in IBM's HDD business and a belief that other sectors of the storage industry offer better growth opportunities led IBM to the deal, the company said in a statement."

IBM Earnings Drop on Weak Tech Spending
http://story.news.yahoo.com/news?tm...&e=1&u=/nm/20020417/bs_nm/tech_ibm_earns_dc_1
Wed Apr 17, 4:13 PM ET ARMONK, N.Y. (Reuters) - International Business Machines Corp. on Wednesday reported its sharpest drop in earnings since the world's No. 1 computer maker emerged in 1993 from a string of losses, saying companies spent less on technology.

I always take sources like the Register & Inquirer w/ a grain of salt. Due to their haste in getting the story out, their facts are not always correct. Just ask Demiurg, our resident professional journalist.

p.s.IBM posted the news release on the 16th.

 

[boeingfixer]

Thanks Uncleel, I appriciate you setting my post straight. I had read somemore later but could not post as it was less reliable than the two sites you mentioned but later found to be better.

 

[T-Shirt]

Best reason is , the have so tainted the IBM name, they don't see their drive business recovering without major effort/cost.
so form a new company, (with a partner to manage it) stick a new name on it , and hope people forget.
yes, the drive business, is one the last of their consumer level production units.
they have tried exiting and reentering various segments of the retail end several times in the last 10 years. I think this time they're serious!