Disk Drives (WAS RE: (EIM)?)

[Chris Whisonant <chris.whisonant@xxxxxxxxxxxxx>]

In case you guys missed it, they DID make changes to the disk pricing (in a
round-about way). IBM is virtually selling its HDD manufacturing to Hitachi.
So now instead of Seagate HDDs in our iSeries
(http://www.midrangeserver.com/tfh/tfh032502-story04.html) we will be buying
Hitachi.

http://www-916.ibm.com/press/prnews.nsf/jan/4B33EA877A332CA585256B9D00761267

"TOKYO, Japan and ARMONK, New York -- April 16, 2002 -- Hitachi, Ltd.
(NYSE:HIT, TSE: 6501) and IBM today announced plans to form a strategic
business alliance designed to accelerate the delivery of advanced storage
technologies and products to market.

Under the terms of the preliminary agreement, the companies plan a
multi-year alliance to research and develop new open standards-based
technologies for next-generation storage networks, systems and solutions.

In addition to, and separate from, the systems alliance, the two companies
intend to combine various hard disk drive (HDD) operations into a new
standalone, joint venture company, integrating their world-class research,
development and manufacturing operations, as well as related sales and
marketing teams. Upon completion of negotiations, Hitachi is expected to
hold 70 percent of the joint venture and make a payment to IBM for its HDD
assets..."

Chris Whisonant