"The winners will be companies that can combine true technical leadership with global economies of scale. That's what this joint venture is intended to accomplish," said Nicholas Donofrio, IBM senior vice president of corporate technology and manufacturing.It's always a sad day when a company that created an industry leaves it, but market forces march ever onward. We can only hope that any quality control issues, whether actual or merely perceived, will be resolved by this partnership.
The joint venture will be owned 70 percent by Hitachi and 30 percent by IBM. It will own most of IBM's disk-drive facilities worldwide, including its Cottle Road plant in San Jose. It will also have rights to IBM's storage patents and inherit 15,000 IBM employees working in manufacturing, sales and research worldwide.