Onstream takes first step in UK with CMS deal

Onstream will make its debut in the UK next month after the tape storage vendor confirmed that it had signed a distribution deal with CMS Peripherals.

The Colorado manufacturer of desktop and server tape drives, which was spun off from Philips Electronics in February 1998, is also the first company to be introduced in the UK through US channel consultancy, Channel Tactics.

Mike Hill, European vice president of Channel Tactics, told PC Dealer: 'The storage area is struggling, not due to a lack of demand, but because prices haven't fallen sufficiently in mass storage.'

Onstream insists its advanced digital recording (ADR) technology is four times cheaper than digital linear tape (DLT) and that it reduces the cost of removable storage to $1 per gigabit in Europe.

'It's not the fastest technology available, but it is compelling given its price performance,' Hill said.

Onstream's product range will ship in Europe from mid-April, and will be targeted initially at systems integrators, systems builders and mail-order channels. The company hopes to sell its products through retail outlets by the autumn, when it is expected to add to its distribution partner.

'With falling PC prices, you could be paying 40 per cent of the total cost of your system just for backup using present systems. We're taking that back down to 10 or 12 per cent,' said Hill.

CMS Peripherals will be the sole distributor for Onstream in the UK and Ireland, while separate distribution agreements have been established in Germany, France and the Netherlands.