Tuesday, July 11, 2006

Iomega Acquires Outsourced IT Company, Enters Service Business

San Diego-based Iomega has acquired CSCI, a San Diego-based managed service provider and IT outsourcing firm, the company said today. Terms were not disclosed. CSCI provides a managed virtual private network service for small and medium-sized businesses. Iomega said that the move is its first into becoming a managed services company. Iomega is re-branding CSCI's OfficeScreen service and will offer the service to small and medium-sized businesses across the U.S. The new service allows businesses to create wide area networks. The purchase is a significant shift from Iomega's existing business of providing storage hardware. The firm has been suffering from lukewarm adoption of the company's REV storage products, and declining demand for its Zip drives.

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