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Seagate buys Maxtor for $1.9B

groovy.ambuj writes "Reuters reports that Seagate Technology would buy rival computer disk-drive maker Maxtor Corp. for $1.9 billion. Seagate is already world's largest hard drive manufacturer and Maxtor is the third largest after Seagate and Western Digital."

36 of 458 comments (clear)

  1. Hard Drive Voodoo? by eldavojohn · · Score: 5, Interesting

    You know, I noticed that between me and my friends the most painful experience when dealing with computers is losing a hard drive.

    Yes, I know it's a nerd thing to say but it's almost as bad as losing a pet.

    Now, because of the brands of said failed drives, I have developed a quality ranking apart from my friends. And it's the pain of that lost data that backs me up.

    I had a death star (IBM deskstar) tear itself apart on me and even though it was one of those old Ukrainian IBM/Hitachi ones, I still shy away from Western Digital who now makes them also. I've also had a Seagate fail me but (to be fair) I had bought it thoroughly used.

    Now, when ever I go out and buy a drive, I'm leaning towards Maxtor simply because I have a lot of them and one hasn't failed me with crucial data on it. I'm a lot better prepared to deal with that now as I'm older and wiser so maybe I won't ever feel that level of pain again.

    Many of my friends swear by Seagate and also claim they're the quietest thing out there.

    These new drives made by the merged company should be quite good, perhaps they're able to combine technologies, patents, manufacturing methods and resources to form a very reliable and quiet drive.

    What I'd like to ask slashdot readers is for a good way to measure drive quality other than throwing down chicken bones and looking at them or reading tea leaves?

    I guess the only thing I've found so far is reviews on-line (sometimes Neweggs have the best sampling), any other suggestions? Is there some kind of hard-drive-consumer-report thingy out there?

    --
    My work here is dung.
    1. Re:Hard Drive Voodoo? by Anonymous Coward · · Score: 5, Insightful

      Anecdotal evidence won't get you far in the hard drive world. You haven't mentioned WD, whose Caviar line is in most of my machines. But I digress.

      A good measure of the hard drive reliability is the warranty that the manufacturer is attaching to it. While there _will_ be failures before the warrarnty expires, it gives an indication as to how much you can trust the drive.

    2. Re:Hard Drive Voodoo? by afidel · · Score: 4, Informative

      I guess this is a good time to bring up the storagereview reliability database. It's the only third party tracking of HDD reliability that I am aware of. Whenever I buy a new HDD or have one die or taken out of service I go to storagereview and update my profile. Other people may not be so reliable, and people with problems are probably more likely to report then happy customers, but it WILL give you a good idea model vs model of the reliability of a drive.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    3. Re:Hard Drive Voodoo? by Daemonik · · Score: 4, Informative
      A good measure of the hard drive reliability is the warranty that the manufacturer is attaching to it.

      Then Seagate wins, their drives have a 5 year warranty, everybody else only offers 3 years max, some as little as 1 year.
    4. Re:Hard Drive Voodoo? by raddan · · Score: 4, Insightful
      And Seagate has a 5-year warranty on its Barracuda drives. Samsung has 3 year warranties on some of its drives as well. As far as I am aware, most other manufacturers have 1 year warranties. I think this speaks volumes about these drives, particularly WD drives, every one of which I've ever owned has failed before the warranty was up.

      At work, we only buy Seagate SCSI and ATA drives. We've returned RAID arrays to Dell because they failed to provide us with the proper drives (they just love to slip WDs in there). This is another bit of anecdotal evidence, but I've never seen a Seagate fail here. The few that have failed have been some Fujitsus and the few WDs that come in laptops. We're talking around 300 machines here.

      I don't have much experience with Maxtors except the one in my firewall that is still going strong after 7 years.

    5. Re:Hard Drive Voodoo? by LurkerXXX · · Score: 5, Insightful

      Mod parent up. It sounds like the grandparent is basing his judgement off of a handfull of hard drives he has personally owned. Statistics off of such a low sample number are very bad. Talk to someone who works at a large corp in is charge of hundreds or thousands of drives. I think you will quickly revise your attitude towards Seagate. There is a reson they have a 5 year warrenty and Maxtor only has a 1 year.

    6. Re:Hard Drive Voodoo? by Skater · · Score: 3, Funny

      I had an ST238R fail years ago! Seagate is the suxxor!

      Just kidding. I've had quite a few brands of hard drives and that Seagate is the only one that's failed for me (and I even own a Quantum Bigfoot!), but I wouldn't have a problem buying another Seagate or other brand.

      I've discovered the way to keep a hard drive working is to back up regularly. Drives only fail when you don't have backups.

      (For any readers that don't know what an ST238 drive is...it was a 32 megabyte drive produced by Seagate back when 32 megs was the DOS upper limit. The R stood for RLL encoding, and they were also available in MFM encoding I think. Oh what a mess we weave when we amiss interleave! Or something like that.)

    7. Re:Hard Drive Voodoo? by COMON$ · · Score: 4, Informative
      I will back you up on that, I am personally in charge of near a thousand computers on our network. The worst luck I have is with maxtors by far. We had a series of external drives that burned themselves out after a short period, with a light load. I can excuse one but had all 7 fail. Not to mention we run dell here and have a good combination of maxtor and Western Digital. I feel a bit of sorrow when I send a computer with a maxtor drive out, knowing that I will be seeing it again soon. Really hurts when I am sending the unit 400 miles to the site...

      I am sold on Western Digital, 5 year contract, excellent drives, got a 10K raptor at home myself. Low failure rate in our enterprise environment. Cant vouch for seagate though, havent had too much exposure to them other than the dirt cheap 300GB I bought that was DOA.

      --
      CS: It is all sink or swim...oh and did I mention there are sharks in that water?
    8. Re:Hard Drive Voodoo? by gr8_phk · · Score: 4, Funny
      "There is a reson they have a 5 year warrenty and Maxtor only has a 1 year."

      So now all the Seagate drives that failed quality control can finally be sold anyway - under the Maxtor brand.

    9. Re:Hard Drive Voodoo? by croddy · · Score: 4, Funny
      What I'd like to ask slashdot readers is for a good way to measure drive quality other than throwing down chicken bones and looking at them or reading tea leaves?

      I think the real question here is: did Seagate buy Maxtor for $1,900,000,000 . . . or for $2,040,109,465??

    10. Re:Hard Drive Voodoo? by Belisarivs · · Score: 4, Interesting

      That really isn't fair to Western Digital. A few years ago, when all the IDE manufacturers were reducing their warranty period to one year for consumer drives, it was Western Digital that came out with their "Special Edition" drives, all of which came with three-year warranties. These drives ran like a champ. Since then they have dropped the "Special Edition" label, and almost all of their high-end drives come with a three-year warranty.

      Back in those days, I bought 4 Maxtor drives, and all of them have failed (One of the main reasons for my move to Western Digital). As it's been said in other posts, anecdotal evidence really isn't much of an indicator for hard drives. I think most of the HD community simply put out crap back around 2002, but have since upped the quality.

    11. Re:Hard Drive Voodoo? by caseih · · Score: 3, Informative
      I'm still not convinced that ATA is suitable for enterprise use, by any manufacturer.

      SATA is just fine. It's almost as fast as SCSI and as far as the seagate barracuda drives go, the SATA disk is identical (well 7200 rpm anyway) to the SCSI disk, except it is cheaper. The rub is the RAID controller though. A good SATA raid controller is every bit as reliable as a SCSI RAID controller. A crappy SATA RAID controller (aka Dell CERC) will sour your experience with SATA. Our Apple Xserve RAID is all ATA (PATA even, although the new one is SATA) and it has proven to be extremely reliable.
    12. Re:Hard Drive Voodoo? by kimvette · · Score: 3, Informative
      Strange it seems to me that hard drive makers all have their lemmons mixed with great quality lines. Its hard to tell.


      Does anyone else here remember when 80MB drives were high end and 120MB drives were pretty much king of the hill? 40GB was the de-facto standard desktop computer size.



      Well around that time (1991? 1992?) Seagate produced a huge run of bad 40GB drives and earned a bad rep for themselves that it took YEARS for them to shake off. If anyone on usenet or a BBS were to mention buying a Seagate drive, it'd be followed by about 30 posts claiming that Seagate sucks, "I had a 40MB seagate and it died" and so forth. Western Digital was the name to trust then.



      In recent years, IBM Deskstars became known for enterprise-level performance on the desktop, and they had many, many great high-performance destkop drives. However they had a bad run of (60GB?) hard drives, and suddenly everyone was flaming IBM "Deathstar" drives across the board. Never mind that it was one specific batch of one specific model drive that was bad. Suddenly all IBM drives were bad.



      In my personal experience (in reference to optical drives but hear me out) I had a bad experience with a Ricoh CD-RW drive - $800 at the time. I had the drive fail within the first month, sent it to Ricoh, got the same drive back, and it failed within a month again. Sent it back, received it. This happened SIX times during the warranty period. In the meantime news broke out on Usenet about a bad run of those drives (which were considered high end at the time) The last two times I sent the drive in I called them (Ricoh) beforehand to beg them to exchange the drive, or repair the specific issue. Each time I received the drive back and it died within weeks. During the warranty period the drive was in Ricoh's possession more than mine. After the warranty was out I disassembled the drive (CD-RW drives were still in the $500-$600 range by then), took apart the optical sled, cleaned it with isopropyl and lubricated it with white grease. The drive worked flawlessly from that point on. The problem was simple: Ricoh chose a poor lubrication (consistency was similar to petroleum jelly) which picked up every single piece of dust that entered the drive, and turned into a glue-like consistency, restricting the optical sled from moving smoothly, so it could no longer seek to follow the track consistently. Because of Ricoh's lousy customer service and their refusal to address the issue properly, I have never bought a Ricoh product again and never will.



      (back on topic, you'll see why I mentioned the Ricoh issue in a moment)

      I've had Western Digital drives fail. However each time WDC customer service has handled the issue with no questions asked, and in each case cross-shipped a new (or refurb) drive, and every time I've received a drive back it's lasted for many years. Because their customer service has been solid, I still buy WDC products, but ONLY the products with a three-year warranty or better.



      I am partial to Seagate though and that's all I will ship to customers in desktop computers or servers when I can help it. With their 5-year warranty on all drives in all channels, you know they're confident in the product and are willing to back it. I just hope with their assimilating Maxtor that Maxtor's quality increases, as opposed to cheapening the WDC line.



      I fail to understand why Seagate would want Maxtor though, except possibly to gain more factory space and maybe a couple of patents. Seagate's products are vastly superior, especially in terms of quality. Maybe it's Maxtor's external drive products they're after? It certainly can't be product quality/reliability.

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  2. Crap by Toby+The+Economist · · Score: 5, Insightful

    There aren't many big players in the hard disk market.

    I'm not that enthusisatic about loosing one of them.

  3. All your bits are belong to us by digitaldc · · Score: 3, Interesting

    So this will mean cheaper HDD prices? Or are we to expect more expensive or stagnant pricing due to the elimination of competition?

    --
    He who knows best knows how little he knows. - Thomas Jefferson
    1. Re:All your bits are belong to us by Ritz_Just_Ritz · · Score: 3, Insightful

      I wouldn't expect any further consolidation in the hard drive business to result in more price competition. There are only a very small number of manufacturers as it is. I suspect that hard drive prices have more or less bottomed out now in the "bargain" segment of the industry and that with current limits on areal density of data on the platters that any differentiation in prices will be based on performance rather than capacity.

      One can only hope that someone comes up with some paradigm shift in storage (either in price or capacity) that puts real pressure on the hard disk manufacturers to innovate and remain competitive.

  4. Question by 0xdeadbeef · · Score: 5, Funny

    Is that like, $1.9 x 10^9 or $1.9 x 2^30?

  5. Re:This isn't a bad thing by a_nonamiss · · Score: 3, Informative

    OK, my idiocy. Replace "WD" with "Maxtor" in the previous post.

    --
    -Arthur
    Cave ne ante ullas catapultas ambules
  6. What happened to the Sherman Anti-Trust Act by Yartrebo · · Score: 3, Insightful

    Considering that the hard drive industry is already quite concentrated and that the largest company in the market is doing the buying, how can the justice department possibly approve this merger.

    Then again, they approved of other such travesties as Exxon + Mobil, Viacom + CBS, Disney + Capital Cities, News Corp + Direct TV, and countless other clearly anti-competitive mergers throughout the last decade or two.

    Allowing this merger will do nothing but slow down innovation and increase prices.

    Has the Sherman Anti-Trust Act been repealed, or am I missing something here?

    1. Re:What happened to the Sherman Anti-Trust Act by 10Ghz · · Score: 3, Interesting

      Well, we currently have Seagate/Maxtor, Western Digital, Hitachi and Samsung. Toshiba makes notebook HD's, while Fujitsu makes SCSI and other hi-end HD's. I think there's still plenty of competition going on

      --
      Lesbian Nazi Hookers Abducted by UFOs and Forced Into Weight Loss Programs - -all next week on Town Talk.
  7. casualty by Lxy · · Score: 3, Interesting

    I remeber seeing a /. article a year or so ago that hard drive manufacturers are running VERY thin profit margins because of the competition. Looks like Maxtor couldn't keep up and became a casualty.

    While I'm generally a fan of Seagate, all drives suck these days. I buy Seagate because they're the only drive with a 5 yr warranty. I now buy hard drives in pairs so I have a spare when one is being RMA'd.
    2 160GB drives + RAID 0/1 controller is a pretty cheap backup solution with a guaranteed lifespan of at least 5 years.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
  8. For those keeping score... by Stavr0 · · Score: 4, Interesting
    2000 - Maxtor buys Quantum's hard drive division
    2002 - Hitachi buys IBM HD division
    2006?- Seagate buys Quantum

    So we're down to Seagate, Hitachi, Western Digital and Samsung. Any other HD brands you see are OEM'd by them.

  9. Re:lol... by unitron · · Score: 3, Funny
    "anyone else read that as Seagate buys Maxtor for $1.98 ???"

    Yeah, but that's after the rebate, if it ever arrives.

    --

    I see even classic Slashdot is now pretty much unusable on dial up anymore.

  10. Dude, get over it by Junior+J.+Junior+III · · Score: 5, Insightful

    All hard drives die. Do you think there's one magic brand that never breaks? They all do.

    There might be varying levels of quality among specific brands and models, but data loss is inevitable if your only line of defense is faith in your bullet proof manufacturer who has never failed on you before. Everyone has one, and every one's is different. Some people have an incredible string of luck with Seagate, others with WD, etc. They all die. If you don't have a robust backup plan that you test regularly, you're going to get fucked at some point. If you've worked with computers long enough, you learn this and understand it.

    I look at a hard drive like most people look at a roll of toilet paper. I use it, it serves its purpose, it gets discarded. The data on it, however, is nearly sacred, and I take every precaution I can afford to protect mine. If I lose data, then I feel like I lost a pet. But I don't have any special attachment to my hard drives whatsoever.

    Having faith in a hard drive vendor is like a quaint superstition from the time when people were so poor that they might only have a single hard drive containing all the data they've ever generated in their entire lifetime.

    --
    You see? You see? Your stupid minds! Stupid! Stupid!
    1. Re:Dude, get over it by Zebadias · · Score: 5, Funny

      "I look at a hard drive like most people look at a roll of toilet paper. I use it, it serves its purpose, it gets discarded. The data on it, however, is nearly sacred, and I take every precaution I can afford to protect mine."

      You sir, value crap far too much!

  11. Intellectual Property by necro81 · · Score: 4, Insightful

    Seagate may have a lot of reasons for wanting to absorb Maxtor. Certainly Seagate will ultimately profit from it, since Maxtor was a decently profitable company (recent slumps in its stockprice nothwithstanding). Eliminating a brand name it has to compete against in the increasingly difficult hard drive market is another.

    I actually think that one of the larger reasons has to do with intellectual property. After being around for a bunch of years, Maxtor has a store of worthwhile patents on hard drive technology that Seagate could have a good use for. Being a competitor, it might have been difficult (read: $$$) or impossible for Seagate to license a Maxtor technology with Maxtor as an independent entity. There is also the intellectual property stored up in Maxtors employees: good talent can be hard to find, and if Seagate is expanding and developing more new technologies, it may have been a lot easier to just buy Maxtor (and gain its employees) rather than try expand its workforce at the slow pace of engineering and management recruiting/hiring.

  12. Anecdotes mean nothing by brunes69 · · Score: 4, Insightful
    I have had an IBM "DeathStar" for the past 5 years (yes, it is a 75GXP, the bad ones). Never had a problem with it.

    On the other hand, I have had one of your beloved Maxtors totally crap out on me after only having it for 6 months?

    What does this mean? Nothing. Hard drives are no different from elevisions or laptops any other piece of complicated equipment when it comes to reliability - on large scale average all the big brands have simmilar failure rates plus or minus a percentage point.

    If you are worried about your data theres just a few you can do.

    1. BACKUP OFTEN
    2. Spend the extra $$$ on a server-class SCSI drive. If reliability is your aim it is well worth it. Regardless of the brand a server-class SCSI drive is much more reliable cause they are designed with heavy abuse in mind. The downside is they are noisy.
    3. BACKUP OFTEN
    4. Use a redundant RAID configuration
    5. BACKUP OFTEN

    That's about it - loyalty to a given brand will get you nowhere, in the end they are all the same - for the most part good, but a bad batch once in a while.

    Personally, I just buy the cheapest drives I can find and run them in my RAID array. If one fails, no big deal. And it saves a ton of cash.

  13. Nice logic... by brunes69 · · Score: 3, Insightful

    Now that Seagate 'owns' Maxtor, will they make Maxtor drives better or just kill the product line off and just use Maxtor's facilities to churn out Seagate HDs?

    And pray tell, why the hell do you think that a Seagate drive produced at the same facility with the same equipment would be different than a Maxtor drive? Loyal to the sticker perhaps?

    I bet you're one of those people who have a "Piss on Ford" bumper sticker too eh?

  14. is it me? by utexaspunk · · Score: 4, Interesting

    ...or does it seem like almost every major national/international market end up in what is essentially a duopoly with a few other minor players? Usually they're red vs blue, too-

    Target vs Wal-Mart
    Home Depot vs Lowe's
    Coke vs Pepsi
    Republicans vs Democrats
    CVS vs Walgreen's
    Nike vs Reebok
    Verizon vs Cingular
    Firestone vs Goodyear
    Marlboro vs Camel
    ...

    There are a lot more that I can't think of right now. I guess since monopolies often get broken up, things tend to stabilize at duopolies...

  15. Actually by ats-tech · · Score: 5, Funny

    The purchase price was $2.9B with a $1B mail in rebate.

  16. re: all hard drives die by King_TJ · · Score: 3, Interesting

    Of course they all fail, but I've also been in the field long enough to observe trends. The fact is, particular makes and models of drives were notoriously poor in the area of reliability. The confusion and conflicting stories you hear usually stem from people trying to over-simplify it to "Brand X is better than brand Y!" In this industry, you simply can't do that.

    For example, back in the early 90's, I ran a very popular BBS. I had multiple computers running 24/7 and constantly being accessed, loading and saving data to their drives. At that time, the Seagate SCSI drives like the Barracuda were the highest performance drives available, so I tried using them. I had one failure after another. Always bearing issues. The fact is, those drives ran *hot* and keeping them sufficiently cooled in anything resembling a standard PC tower case was nearly impossible, so they'd self-destruct. Did this make Seagate a "bad company"? No, but it told me their high-performance, expensive drives weren't appropriate for my needs.

    Earlier on, I had many other failures with Seagate drives, but this was way back in the day when the standards were MFM and RLL. The very popular Seagate ST-238R (30MB!) drive was always losing data and going bad on people, for example.

    None of this means anything as to reliability of today's IDE Seagate drives, though. And with my recent poor experiences with Maxtor SATA drives (failing immediately outside the 1 year warranty period), I'm currently a fan of Seagate for those.

  17. Re:Seagate warranty by Jepah · · Score: 4, Interesting

    I used to work for a company making Desktops for home users, 5 years ago. At the time we would probably get around 30 faulty drives a month returned. Of these the huge majority were maxtor. We would get the occasional Seagate and IBM. This is pretty anecdotal considering they were only in sub $2k machines, but we started avoiding Maxtor drives which didn't have a long warranty.

    Oh and the WD drives I have bought recently have all had 5 year warranties.

  18. Re:Woah there! by vertinox · · Score: 4, Insightful

    If I lose data, then I feel like I lost a pet.

    Woah there! Maybe you are taking this data thing too seriously.

    Come to think of it... I used to be just like you. I always had redudant copies of hard drives, then copies of those, and then I went all the way and got a RAID controller and started out with Raid 5 but I figured that wasn't good enough to I mirrored that...

    After about 10 years of doing this (since 1995... I still got backups of my old IBM PS1 on my current computer) I realized:

    "What the fuck do I need all this data for?"

    I've got shit I don't even remember. Hard drives just laying in my closet full to the brim of stuff I don't even know what is on. CDRs and CDRs of shit I backed up but yet I don't know what good it will do me because everything I now use is stuff I downloaded or bought in the last 6 months.

    Maybe I'm too ADD, but I just can't keep up with crap that I did even a year ago that is worth keeping.

    My suggestion to break this cycle. Pull out a random hard drive from a closet (or computer) that you can't remember what you put on it and format it and install something like Ubuntu or whatever OS you want to play around with.

    It feels painful at first as you watch the progress of the install go by when you know you could be loosing valuable data, but you know what... If you can't remember what you put on their it probaly wasn't worth keeping.

    Yes, data hording is an addiction and I had the same problem too so I understand how hard it can be to try to keep bit of data I have came across in my life time. I still need to ebay all these seagate drives...

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  19. Read the fine print by OldManAndTheC++ · · Score: 3, Funny
    "Reuters reports that Seagate Technology would buy rival computer disk-drive maker Maxtor Corp. for $1.9 billion"

    Actually it's $2.6 billion, with a $700 million rebate.

    And that puppy expires December 31, so they'd better remember to send it in.

    --
    Soylent Green is peoplicious!
  20. Re:Woah there! by killmenow · · Score: 3, Insightful

    I know where you're coming from. I still have QIC-40 tape backups from one of my oldest PCs. Hell, I still have floppies *and cassettes* saved from my first Atari 1200. Here's my problem now:

    The floppies and cassettes are so old as to have lost much of the data on them. (I confess I haven't stored them properly; but, even had I done so, there is still a good chance of data loss.) And the QIC tapes I have no device capable of reading now. I am quite certain there's some old letters, poems, songs, and other miscellaneous writings on those tapes written with a word processor that's no longer available. So, even if I had a device capable of reading the tapes and restoring the data, I still would need to find a way to get the data out of that old proprietary format and into a format I can use now.

    You are correct about the painful part, too. I started throwing old crap away when I had an epiphany similar to yours. Even knowing I'm throwing away things I haven't touched in 20 years and if I did restore it and convert it to a usable format, I still probably would be either: (a) unimpressed; (b) underwhelmed; and/or, (c) embarrassed by it. It's still difficult letting go of it.

  21. Warranty not a good measure by egarland · · Score: 4, Insightful

    A warranty is a good measure of how reliable a manufacturer EXPECTS a drive to be, not how reliable it actually is. The deathstars, for example, were much more failure prone than IBM expected. There is no way to know about issues like that from warranty information. MTBF numbers usually given out are the same thing, not based in actual data but based on engineering estimates.

    To know how reliable a drive is, you have to know actual failure rates. Only the manufacturer is typically in a position to accurately measure those and they pretty much never give it out without an NDA or court order. We on the outside are left manually piecing together the data using methods like The storage review drive reliablity survey:

    http://www.storagereview.com/map/lm.cgi/survey_log in

    which attempts to gather accurate statistics from large samplings from users. This seems like a lot of work but hopefully it will pry the window open and convince manufacturers that it won't be the end of the world if people know how reliable their drives actually are.

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