While Iomega has done a good job of building its Zip disk brand over the past several years, it made a critical error when it reduced the prices on the drive and pinned its hopes for a long-term revenue stream on sales of disks.

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It was only when the design was able to pass strict enterprise-grade Zero Error standard of 400 units surviving 500 hours of the toughest continuous testing without a single error or failure that the drive was manufactured.

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The WarpDrive card helps to ensure high reliability with a management infrastructure offering extensive monitoring, including health, error rate and drive failure.

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Even though Iomega won the battle of removable storage--it bought out the assets of its main rival, the bankrupt SyQuest , in late 1998--and its Zip drive is a de facto standard for PCs, Porter says the company made a critical error by selling the drives at a low margin, thinking profits would come from the sale of the disks.

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