day 16




what makes the world go 'round 3:
the power of multimedia


There is an insatiable thirst for storage

capacity in the land; perhaps it has something

to do with those 10MB Adobe Photoshop

files. According to estimates computed by the

SpinDoctor and backed up by reputable research

firms like Dataquest, Inc., the $200 1GB disk

drive of 1996 will become the $250 10GB drive by

the turn of the century. We are talking 1-2

millisecond access, gigabyte transfer rates, and

dirt cheap prices.

Disk drive capacity is expanding at almost 100%

per year, a rate that will catapult today's 1 GB

drive to the 10-20GB level by 2001 - a tenfold

increase in little more than 4 years. You can

expect to pay 0.4 cents/megabyte for a $200

drive within four or five years. Compare this

with today's 40 cents/megabyte.

Why has the disk drive industry been so

successful? With numbers like these, we should

ask why hasn't the disk drive industry been more

successful? After all, capacities are running

rampant, and this should feed the obsolescence

factor. The multimedia craze creates demand for

storage, the technology is running wild, yet

where is the Intel of Disks? Who is the dominant

disk drive maker?

More trips to Fandango's to ponder these

questions. Tomorrow we find out who owns the

disk drive biz. We learn why one of the biggest

mergers in disk drive history may shake the

industry out of its rut. The making of the disk

drive kingpin may be underway.

what makes the world go 'round: 1 2 3 4 5



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