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4/9/2008
10:14 PM
Howard Marks
Howard Marks
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Why Did EMC Buy Iomega?

By now you've read the news reports that EMC bought Iomega for $213 million. I can't help but wonder what they got that was worth it. Back in the days when 100 MB Zip disks were the easiest way to move more than a floppy's load of data from one place to another, Iomega was a force to be reckoned with. Today it sells USB hard drives, low-end NAS boxes running Windows Storage Server, and the REV removable media hard drive. Why would EMC, king of the services sale, want to enter the low-margin con

By now you've read the news reports that EMC bought Iomega for $213 million. I can't help but wonder what they got that was worth it. Back in the days when 100 MB Zip disks were the easiest way to move more than a floppy's load of data from one place to another, Iomega was a force to be reckoned with. Today it sells USB hard drives, low-end NAS boxes running Windows Storage Server, and the REV removable media hard drive. Why would EMC, king of the services sale, want to enter the low-margin consumer market where it will compete with Seagate and Western Digital? Even if it does, is the Iomega name worth $200 million? I really can't believe it was desperate for the REV technology. What do you think?

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