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HP, Quantum in cahoots for LTO-5

HP and Quantum put out a press release very quietly a week ago (it crossed the wire at 2:30 on a summer Friday afternoon; hard to fly much farther below the radar than that) announcing that they will be partnering more closely on development of LTO-5 tape products.

The exact terms of the agreement are confidential, though reps from both companies said this week that HP will be handling the “productization” of LTO-5 products, from the selection of components to decisions about product packages, whereas Quantum will be handling the design work for meeting LTO-5 specs.

This news follows on an announcement a few weeks ago that HP will be bundling Quantum’s StorNext file system with its EVA arrays for multimedia storage at production houses including Warner Bros.

As the two companies cozy up–and do so with such an emphasis on confidentiality, at least with this latest agreement–it begs the question: could an acquisition be next?

Like Sun when it acquired StorageTek, HP might be able to boost server sales out of owning Quantum. HP has also been doing battle with IBM lately in storage, and proprietary tape is one thing IBM has that HP doesn’t. (Hence IBM’s bluster a few months ago about being No. 1 in pure storage hardware sales, according to IDC).  Also, Quantum’s products tend to appeal to the midmarket and small businesses, and lately HP’s storage strategy has been moving downmarket as well.

Right now, analysts say there’s probably nothing more to this latest tape deal between the two companies than meets the eye–if there are broader implications, according to Arun Taneja, founder and analyst with the Taneja Group, it’s for the tape market in general. “The reality is that despite tape people shouting, the tape market is maturing and declining,” he said. “For Quantum to develop two distinct tape products with both DLT and LTO is a fool’s paradise in that kind of environment.”

But if a company focused entirely on tape starts to offload production of one half of its tape business, you have to start to wonder. Especially when it’s offloaded to a vastly bigger company, which has a spot open for said products in its portfolio, and which itself has been pushing to continue its momentum in the storage market of late.  For now there hasn’t been any smoking gun we’ve seen pointing to an impending merger, but rest assured we’re keeping an eye on these two.

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Both HP and quantum are great companies and I am really in hurry to use LTO5
Both tapes are too good. I'll use them.