The LTO Market

The LTO Market has shown a strong growth since the introduction of the LTO standard in 2000, and forecasts shows that the growth will increase in the years to come.

The strongest growth will occur in the Half Height segment of the market. The Half Height segment is Tandberg Storage's core market.

The main driving force behind the market growth is the simple, but vital fact that Half Height LTO tape drives combines high quality, high capacity and relatively low prices, compared with other solutions. Lower prices have opened new markets and increased sales volumes, as high quality LTO tape drives becomes affordable for a growing number of small and medium sized businesses, organizations and government bodies. 
 

Distribution in the US Market

The distribution in the US Market has significant impact on both the margins and the sales life of various versions of LTO tape drives. The renowned Freeman Reports forecast that more than 82000 Half Height LTO tape drives will be sold in the US Market in 2007.

  Figure: The US Market 

Approximately 45 % of these tape drives will be sold in the Distribution Channel. Sales through the Distribution Channel yields higher gross margins than sales through OEM's, and each version has a longer sales life in the Distribution Channel.