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officials from Digital and Quantum were now not purchasable for remark the day past, but Mr. Palmer, in a statement, mentioned: "we're in the method of finalizing the strategic redirection of Digital. One vital point of that work is close examination of which corporations and areas of technology they should supply without delay to their shoppers, and which areas make sense for us to give through strategic partnerships. Their negotiations with Quantum concerning the sale of a component of their storage enterprise are part of their general plan to come the enterprise to profitability as instantly as feasible."
Quantum, the speedy-starting to be market leader in disk drives, has focused on constructing tough drives for personal computer systems. Alexa McCloughan, an analyst with the overseas information organization, noted that Quantum, which holds more than 21 percent of the market, had been a small player in the high conclusion of the disk power market, which caters to effective servers and midrange computer systems. Digital has less than 1 percent of the disk drive enterprise but is neatly viewed within the excessive conclusion of the market.
"it's what makes the deal so complementary," Ms. McCloughan talked about. "Digital sells drives for top-end servers, up to mainframe classification packing containers, so there is an evident healthy between the two agencies with very little product overlap."
She delivered that Digital had developed new recording-head technology called magneto resistive, or MR, heads, through an investment in Rocky Mountain Magnetics, a three way partnership with the Storage technology service provider. This know-how, she talked about, changed into appealing to Quantum.
"this is elaborate expertise to increase and Quantum hasn't gotten there yet, so this is able to be attractive to them," Ms. McCloughan talked about. She added that Digital can be not likely to sell its disk power company with out together with the recording heads unit.continue reading the main story
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