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Iomega Isn't Zapping the Zip

Boot Camp feature for Friday, December 5, 2003

Iomega isn't zapping the Zip. Bloomberg Boot Camp, a report on today's technology. For years Iomega depended upon sales of Zip drives to earn money. But sales have plummeted and the company has been cutting jobs to survive. It plans to introduce what it calls REV drives next year, which use what Iomega calls removal rigid disk or RRD technology. CEO Werner Heid...

"What it is is really a removable hard drive system which actually combines all the advantages of a hard drive when it comes to speed, ease of use and reliability with the security and removability of tape. Because once I pull this little cartridge out of the system, I have now basically a high speed, high capacity, removable cartridge in my hand which can store 35 gigabytes of native capacity or 90 gigabytes of compressed capacity."

Iomega doesn't expect the REV drives to become the kind of mass consumer product that its Zip drives were. And even though the company has blamed the fall of the Zip for its losses lately... Heid says Iomega has no plans to abandon it...

"it is always premature if a supplier of technology is prematurely obsoleting technology before the customer really wants to obsolete it."

Even though CD burners that can store more data, more cheaply are common, Iomega says it still has Zip customers particularly in education and government. Bloomberg Boot Camp, I'm Fred Fishkin.