Sitting in my closet is a piece of blue hardware from DOS/Windows 3.1 days. It is a parallel-port connected Iomega drive. For a brief period, Iomega was an icon of the personal computer world. Back when floppy disks with a capacity of 1.4 MB were the way to back up things, Iomega came on the scene and offered a proprietary backup system with 100 MB addressable disks called “Zip Disks”. It was expensive at $10 a disk but provided an easy way for the home user to back up or transfer files. And in those days 100 MB was a lot. For a time Iomega was a stock market darling. In the two-year period from June, 1994-June, 1996, the stock price went from under $1 to over $137. It became a cult stock with a group of fanatic stock owners who called themselves “Iomegans”. Note that this was before the dot-com rage for technology stocks. In fact, the stock didn’t participate in that market bubble. The stock price has steadily trended down since 1996 and was recently between $3 and $4.
Iomega’s place in the sun didn’t last long. A disk capacity of 100 MB didn’t stay viable for long and when the company upped the capacity to 250 MB, the new disks were not compatible with the old hardware. Since the ability to burn CDs was becoming available, Iomega lost its interest for many home users. Then USB came along and proprietary hardware and formats were completely out of favor. Iomega struggled along as a minor player in external drives but never again had the important place it once had.
What has brought Iomega to my mind is today’s announcement that EMC is buying Iomega for $213 million.