IBM unveils fastest server hard disk drive

Nicole Volpe

NEW YORK: International Business Machines Corp. on Thursday unveiled the

fastest hard disk drive for use in powerful business computers known as servers,

signaling a recovery in the business for the world's largest computer maker

after a year of production problems.

IBM's new server hard disk drive, the Ultrastar 36Z15, matches the 15,000

revolutions per minute speed of the one already made by market leader Seagate

Technology Inc.

But, based on the speed with which the drive moves to retrieve a requested

file, known as seek time, IBM's is the fastest hard disk drive now on the

market, analysts said, surpassing the speed of Seagate's drive.

"IBM's would be the fastest disk drive out there," said Jim Porter,

an analyst at Disk-Trend. "Seagate did the first move to 15,000. IBM is

definitely rivaling Seagate on server drives."

Seagate spokesman Woody Monroy said that: "IBM is a year late," and

that Seagate would soon offer a product that would surpass the performance of

IBM's offering.

"By the time that IBM actually steps into the ring and starts shipping

these drives, we'll have introduced our next-generation product, and we'll be

back on top in terms of the specs they've quoted," he said.

Armonk, NY-based IBM is shipping the new drive in this quarter. Monroy said

Seagate would introduce its next product during that time frame, but gave no

further details.

Seagate had a 44 per cent share of the market for server drives, while IBM

had about 25 per cent in 2000, according to market research firm International

Data Corp.

IBM suffered delay in 2000



IBM had about a 35 per cent market share in 1999, before having to delay the

release of 10,000 RPM drives last year.

The computer maker's hard disk drive business showed sales declines in the

first three quarters of the year, and was cited by executives as a drag on

overall results.

Large quantity shipping did not start until the third quarter, and the

business returned to revenue growth in the fourth quarter.

Analysts said the IBM hard drive troubles may be getting worked out just in

time for a projected pickup in demand for server hard drives after flat growth

last year.

For 2000, server hard disk drives were a $22 million market, about flat with

the 1999 total of $21.9 million, according to IDC.

"It was sort of a Year 2000 hangover," said Dave Reinsel, analyst

with IDC, referring to the slowdown in computer system buying after corporations

spent heavily the year before to make their systems ready for the Year 2000

changeover. "There an increased build in 1999, and a slowdown in

2000."

He added that in 2001, server hard disk drives are forecast to have growth in

the 15 per cent to 17 per cent range.

Bill Healy, vice president of IBM's storage technology division, said that he

has seen indications of strong demand for the new IBM product.

"We are seeing very strong demand from our key OEM customers,"

referring to original equipment manufacturers, or computer vendors for which IBM

makes the drives. "We've sent samples out to larger customers, who are

qualifying the drives."

Other players in the hard disk drive market dominated by Seagate and IBM

include Fujitsu Ltd., Quantum Corp-HDD and Hitachi Ltd..

(C) Reuters Limited 2001.