Overland Storage, formerly known as Overland Data, announced support for Hewlett-Packard's (HP's) Linear Tape-Open (LTO) Generation 2 tape drive. HP and Overland have teamed up to integrate the new drive into Overland's Neo series tape libraries. The new drive supports 400GB of compressed capacity and speeds as fast as 60Mbps compressed. The new capacity doubles the performance of the first generation of LTO products.

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Backup tape products have faced increasingly heavy competition from disk-based backup products recently as the price of storage has dramatically decreased. LTO backup and disk-based products compete with Super DLTtape and VXA-2 backup tape technology. Earlier this year, Super DLTtape was upgraded to support 320GB of compressed capacity. Overland and other companies such as Advanced Digital Information Corporation (ADIC), Compaq, Dell, HP, IBM, and Quantum sell Super DLTtape products. VXA-2, which Exabyte is positioning to replace DDS backup technology, can store 160GB on one tape cartridge with an average 2:1 data-compression ratio and transfer speeds of 12Mbps.

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