Why Seagate bought Xyratex | ZDNet
Summary
Xyratex spun out of IBM in the UK some two decades ago and they knew how to build quality products. They had two main product lines: The Storage Bits take Now that the disk drive industry is down to three players, the constraints that hampered innovation and vertical integration have disappeared. With the slow-motion collapse of the PC business, the best opportunity for disk vendors today is in external storage: SOHO, SMB and enterprise. Seagate is now likely to start going after the Small and Medium Business market against other channel players. The weaker players will shift out and -- hopefully -- the rest of us will see higher quality and better service.
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