Are you finding midrange systems cannibalize high-end systems sales? I don't see cannibalization. I see demand for both areas. Another way to think about that is could robust, clustered midrange systems be a movement in the future? Very possibly. But there will be requirements for large mainframe systems and requirements for midrange systems. But the more important thing in my point of view is that everything interoperates.

Are disk systems eating into tape system sales? We've probably had our best tape [sales] year in years. Innovations in tape is what will continue to drive tape going forward. The key is customers have to save a lot of this data. There's a lot of compliance regulations driving this. There are tons and tons of images. Our focus has been to stay on or better the 10:1 [price differential] between [serial ATA disk drives] and tape. As long as we stay on that path, I think we have some breakthroughs that are just jaw-dropping. The density and price curves that we plot keep us at a good differential from disk for as far as we can see.

Lastly, the key to this whole thing is to get end-to-end encryption right. I believe we have the right strategy for that.

And what's that strategy? Link it to the zSeries. Because the hard part is not encryption of the tape. The hard part is the key management. It's how you allow access to the stuff. How do you define access. The zSeries is the best in the industry at doing that.

When do you expect to have that end-to-end capability? Pieces will roll out over the next two years.