Data Storage Today - Next-Gen Storage - Toshiba Builds World's Smallest Hard Drive: "The 0.85-inch measurement refers to the diameter of the magnetic disk to which data is recorded. Its initial capacity will be 2-4 gigabytes. Toshiba expects to start sampling the drive in summer 2004 and start mass production in autumn 2004. "
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Things are starting to get interesting in a big way for little hard drives. I've been commenting on this and its implications for 2 years now. Clearly the tipping point is almost at hand.