First problem, is how to feed the LTO Drive.
As you know, it can only "stream" data unto tape effectively.
And the data is compressed on the fly.
So you need hight performance HDDs, or ram cache, or wahteveer scheme you have.
If you have a local tape and backup from drives, that will be your limit.
Then, in order for this to make sense, you have to change the tapes. And THIS is the problem. Somebody changing tapes is EXPENSIVE.
So, it is a no no if you are colocated.. only works on your own premises and iomplies going inside the CPD.. or having a robot.
When you start having robotic arms, the cost of the drive starts being irrelevant, the backup device starts getting really expensive.
So at that point you might reconsider and just use an storagepod, that is less expensive to operate than tapes, much more reliable (you know, yo CAN get your data for sure our of the system) and is also random access.
If you are a huge player, tape makes almost no sense, if you are small makes no sense at all, so it is medium enterprises that MIGHT be interested.
Frankly, I don't understand why people buy tapes...it ends up being more expensive.. and I said the same about big and expensive HDDs SANs vs Flash.