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Storage Technology Drops Prices To Compete With IBM

November 13, 1985

LOUISVILLE, Colo. (AP) _ Storage Technology Corp., in a move prompted by price cuts made by International Business Machines Corp., has cut prices on some of its data- storage products, including a dual-capacity disk drive.

The price cuts, ranging from 5 percent to 18 percent on some products, match those made late last month by IBM.

Storage Technology’s dual-capacity disk drive will be available to compete with IBM’s in the second quarter of 1986.

″This is a good time for price cutting, because everyone is making (purchasing) plans for next year,″ spokeswoman Wadad Abed said Tuesday. She confirmed the company was responding to the IBM price cuts. Storage Technology is operating under protection from creditors under Chapter 11 of the bankruptcy law.

The dual-capacity products allow customers to store up to 5 billion characters of information.

Users can also store more information in their mainframe computers without requiring more space, an important consideration to companies that are expanding their computer capacity.

In addition to price cuts on the 8380E disk drive, Storage Technology dropped the price of upgrading single-capacity disk drives to double capacity and cut the price of its 8890 Sybercache intelligent disk controller.

Those controllers, also in competition with an IBM product, manage the flow of information between storage devices and a computer’s central processing unit.

Storage Technology also said it was lowering the anticipated price of its 8380 Model E, a dual-capacity device, to $96,200 from $108,200.

The anticipated cost of upgrading an 8380 disk drive from single to double capacity was also lowered, to $42,800 from $45,050, company officials said.