Plasmon licenses IBM technology for tape push

CD-ROM and MO storage specialist Plasmon has licensed IBM's MagStar MP 3570 tape drive systems to power a new line of Plasmon-branded tape storage library systems. According to analysts, the deal could boost Plasmon's sales by 25 per cent. The agreement grants Plasmon worldwide rights to MagStar MP technology to be included in mid-range library systems aimed at open systems environments. It's a market that Plasmon has so far ignored, focusing instead on the optical storage media. The first MagStar MP-based products are due to ship in Q4 1998. "This agreement allows Plasmon to leverage its broad expertise in optical automation into the fast growing tape automation marketplace," said Plasmon chief executive Nigel Street. Both Dataquest and the Gartner Group reckon the tape library market is worth $1 billion, said Plasmon. Worldwide shipments of library systems are expected to double over the next three years. Plasmon already produces various tape drives for other manufacturers, including IBM, a business that accounts for £27 million of the company's overall sales of £40 million, according to Henderson Crosthwaite analyst Richard Dyett. Dyett reckons that the IBM-based product could boost sales over a two to three-year period by 25 per cent. However, "it will take time for Plasmon to establish a reputation in this field because it has never produced this style of produce before", he added. ® Click for more stories