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Optical WORMs Into Enterprise: Page 2 of 3

Since mid-May, Plasmon rolled out two midrange optical UDO libraries and an UDO appliance for healthcare applications; FileNet Corp. (Nasdaq: FILE)
and KOM Networks Inc. announced their software supports UDO; and StorageQuest Inc.
brought out an appliance that supports UDO and DVD optical libraries. (See Plasmon Extends G-Series, FileNet Intros P8 ASAR, KOM Supports Plasmon's UDO, and StorageQuest Demos Net Archiving.)

An even more advanced technology -- holographic optical -- is also on its way, pioneered by InPhase Technologies Inc., Aprilis Inc., and Japanese-based Optware (see Compliance Hoists Holograph Hopes). Holographic disks hold 200 Gbytes of data. HO is more than a year away from commercial availability and will likely show up first to store high-definition TV images for broadcast companies.

All these developments signal a surge in optical storage, particularly in industries such as healthcare and financial services that have heavier-than-ever data retention requirements due to new regulations.

There is a downside. Despite recent advances, optical isn't a dominant archive medium. Tape and magnetic disk drives also feature WORM capabilities now, and content addressed storage (CAS) systems such as EMC Corp.’s (NYSE: EMC)
Centera, based on low-cost disk, are making inroads in compliance-heavy organizations.

“Optical is finding new customers and new applications, but it still faces the same old struggles,” IDC analyst Wolfgang Schlichting says. “Tape is more cost effective, and now low-cost disk is becoming a strong competitor as well.” Several vendors see optical storage as a supplement to CAS or other disk-based archiving systems.