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IBM Spins Down
beggs writes "IBM and Hitachi have signed an agreement which will take IBM out of the hard drive market in three years. This press release on IBM's web site gives some details of the deal. 18,000 IBM employees and all their hard drive related patents will join about 6,000 Hitachi employees to form a new company that will be a subsidiary of Hitachi. Sad to see big blue out of the hard drive business, they have made a lot of contributions to computing." We did a story when they announced their plans back in April.
What will stop Hitachi from firing everyone after three years and moving production to cheaper Asia?
Nothing. But that's not a bad thing. All that will happen is 24,000 or so people will be freed up to do something else in our economy. A company like this sounds like it belongs in Asia anyway - America isn't known for cheap duplication of already wide-spread technology. We're more well known for our R&D efforts contributing to the latest in technology. So, I wouldn't worry too much about it - with the speed that our economy is changing, we won't even notice the flux of 24,000 jobs.
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Computer world has an article from earlier last month, which has some insight into the issue.
The IBM Death Star has been defeated! The rebellion has won! :D
The harddrive market is not really a lucrative bussness anymore. The costs of developping harddrives with larger capacity is almost outgrowing the earnings of selling drives.
IBM has a good reasearch facility which have come up with new methods for storing data. Probably they want to raise money for the production of some of those methods. It's not that that division was skyrocketing their sales revenue anyway...
I'm guessing Hitachi's going to find in a few months that they got 18,000 migrant workers and dummies propped up with sticks.
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Umm. IBM has a PATENT division/business, in and of itself. All that arm does is collect royalties, and sign licensing deals.
That alone should be enough to keep IBM in business for decades.
Also note: Certain IBM HDD operations are not included in the deal.
I would suspect this is the research area that is working on the next-generation HDD stuff. I don't think IBM would transfer any existing patents it hasn't already milked all the royalties out of.
"I can't give you a brain, so I'll give you a diploma" - The Great Oz (blatently stolen sig)
Sad to see big blue out of the hard drive business, they have made a lot of contributions to computing. Yeah, it's really sad. I'll espacially miss the 75gxp series.
and take some away for his lack of personal experience on the issue, see how he feels about being "freed up" to pursue other employment avenues in 20 years time.
Hey, now, don't get me wrong - nobody likes to be laid off. The reason I can deal with it is because I understand the economics of it all - the economy is a delicate thing. Anything man has ever done to hinder the invisible hand of the free market has always backfired. I'd rather be out of a job for a few months in a prosperous country than to have a stable secure job working for the government in a country of distributed poverty. If you give me a hand-out when I'm laid off and make it easier on me, you stifle my innovation and rob the world of the ideas I would think up when it's sink or swim and I've got to swim if I want to feed my kids. One man's temporary discomfort is better to have than the wasted dreams of a nation living well below its potential because it chooses to distribute the weath of those who have earned it to those who have not.
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IBM has always been tops on the Research and Development in the field of Computer Science. It is not too bad that they are leaving the hard drive market, but actually good that they are doing this. The Hard drives have turned into a commodity. People are making them cheaper and cheaper. At some point, there will so cheap that 1) there will be very little profit margin 2) only a handful of companies will be able to profit.
I'd rather see IBM dump this branch and be able to earn royalty or have stock ownership in this new company than bog down their budget with this sector. By dumping this sector, they can now effectively use their R&D to develop something new. Maybe a new hdd technology, that they will license to the new company.
_______________________________
"I'm not Conceited...I'm just a realist..."
IBM still does a lot of semiconductor fabrication research and licenses the patents out. I would guess this will happen to hard drive technology.
Making chips and hard drives is basically a commodity business. The real money is in developing new methods, products, etc. that can be licensed. IBM is very good at this.
"Sad to see big blue out of the hard drive business..."
IBM drives used to be good. They were expensive, but they were good. You knew that if you sprung the extra cash for an IBM drive you were paying for reliability.
Exactly when this changed I don't know, but what I do know is when I hear of people who have had a large capacity drive die suddenly overnight, my first reply is 'is it an IBM?' - literally every case within the last year has been 'yes - how did you know?'
I (and many others) are presently involved with a class action lawsuit against IBM for claiming that their drives are reliable when they are not. I unfortunately bought an IBM Deskstar 75GXP drive when looking for a solid reliable drive however this turned out to be a big mistake. It was the first IBM drive to use a glass platter to reduce costs etc. but unfortunately it simply made the thing extremely unreliable. My own tests have shown that the thing is VERY susceptible to overheating, and the only way I could get it to retain any data was to keep it as cool as I can (at this point using seperate screw on dual fan HDD cooler and extra case ventilation with nothing near the drive).
Bye IBM - you wont be missed (like my 50Gb of data was).
Welcome to Wal-Mart.
While maybe 24,000 jobs won't be missed (unless one of them is putting food on your table and a roof over your head), but this is only a drop in a river of jobs moving offshore.
I suggest you check out yesterday's WSJ Boomtown column for a little enlightenment, like the paragrapgh that reads:
"Career advice for the 21st century: Stay away from any job that can be done online, or you'll be competing with my buddy Odyssey -- and people eager to underbid him, too. I found a good programmer in five minutes. I'm still looking for a good carpenter."
Want to trade in your mouse for a hammer? Unless you can somehow compete with equally competent coders who charge 1/10th what you do, you're going to be in the same (sinking) boat as the rest of us.
Globalization is rather painful.
Sector and read failures are an integral part of the ATA standard and are passed via the HD controller as responses to failures. People have NO RIGHT to complain about these failures in 75gxp, the linux kernel and fs subsystems are even designed to handle these errors gracefully and not panic. Do you complain when Java <throws> an exception? No, you put some code in the catch(e){}; Instead of complaining, do something about it, ext2 and ext3 should be adjusted so that you can use,
ext2 make install --unreliableHD-12
where the use of this switch whilst compiling ext2 will automatically incorporate RAID5-on-a-drive-Reed-Solomon-type ECC in the fs module with an ability to handle a 12percent probability of sector failure per year. The fs source code will decide the Shannon's minimum ECC distance on this information and inline the appropriate strength of ECC to absorb these failures, these extra ECC blocks will be stored on different tracks because HDs have a distinct lack of spatial ECC making them vulnerable to head-scratch and cylinder-not-found errors(?).
So there, we can all use 75gxp now, if the drive's own IDE ECC can't handle read errors, then instead escalate and use the added ECC in the ext2fs subssytem or in the kernel to perform ECC. That way the paranoid among us can hedge their bets against read failures and sector not found failures. Obviously global drive malfunctions such as total drive electronics failure or total bearing failure won't be protected against. Heck WinRAR compression has this ECC feature built in, why can't a fs which is far more critical have it built in? Quit whining.
A caveman dreams of being us, the incalculable power and riches. We dream of being Q, then what?