So how do you throw away a lead like that? Yes, there was better technology available but it was late - and thanks to skilful PR, Iomega's bandwagon was already rolling. Once an installed base is established for something like this it doesn't matter how good the competition is - you are the standard. Remember Video 2000?
So, to really blow it, Iomega had to get complacent. First off, as they were a global company they decided to get rid of their excellent local PR and switch to a large international concern. It's called rationalisation, but it isn't rational.
Next, they neither increased the capacity nor reduced the price of the disks, in spite of second-source licenses. Then all they had to do was sit back and wait for the competition to make their products look silly.
On the replacement floppy front, Or technology have finally go the LS120 floppy disk replacement to market. This works on a similar principle to the zip disk, but also works with standard 3.5" floppies. By making it cheap, system builders can put it into new machines in place of the standard floppy drive. Iomega's internal drive price was reduced accordingly, but it can only be integrated in addition to a standard floppy.
The Zip drive is good, don't get me wrong, but it is no longer the only credible name in town. If the LS120's original developers - Compaq - decide to ship it in all new machines the Zip's installed-base advantage could suddenly disappear.
The 1Gb Jaz was always going to hit a niche market because it's disks cost £70 each. The SyQuest SparQ drive is the same capacity but half the price, and the disks cost about a third the price of Iomega's.
So, do you buy 1Gb high-speed SparQ disks at £25 each, or slow 100Mb Zip disks at £10 each? It isn't that hard a choice.
Iomega's answer to the SparQ is the Jaz 2. It is double the capacity and just about double the price of the Jaz 1, and although it works with Jaz 1 cartridges too it is said to do so slowly.
SyQuest's answer to the Jaz 2, which has already been demonstrated, is the Quest. At 4.7Gb, and at about the same price as the Jaz 2. Anyone would think that SyQuest were out to get Iomega! Well, they did hire Iomega's discarded PR agent - the one who got things rolling for them in the first place. Still, at least Iomega still have the lead in low cost tape drives with the Ditto Max.