Bookmark and Share



Without any doubts, leading makers of hard disk drives are late to solid-state drive market. But it looks like the situation is getting better for them thanks to recent take-overs and partnerships.

In less than one month Western Digital, the world’s largest manufacturer of hard disk drives, acquired two companies that specialize on solid-state drives or software for SSDs, sTec and VeloBit. Previously, WD acquired some other companies, which specialized on solid-state storage, including SiliconSystems. As a result of such take-overs Western Digital gains not only technologies and experienced personnel, but also patents and customers.

While actual fruits of all WD’s transactions remain to be seen, financial analysts believe that the management is capable of taking advantage of both acquisitions. In fact, they say that Western Digital is on-track to become not only a viable make of solid-state drives, but also on the extremely lucrative market of solid-state storage for the enterprise, a market now dominated by companies like OCZ Technology Group, Fusion-io and others.

“First, it demonstrates that WD is committed towards pursuing the server-side flash market that Fusion-io (FIO) has pioneered. Second, it underscores the idea that the hardware aspect of that market will ultimately commoditize. A complete solution will include caching/data management software and will carry high margins (50%+, in line with storage array vendors) while a hardware-only solution will carry much lower margins (in line with SSDs/HDDs). Third, it demonstrates that WD has ambitions to move up the enterprise stack and capture a greater portion of the value chain beyond providing storage capacity. Fourth, it pressures Seagate (is Virident partnership enough?). We view this move favorably,” said Edward Parker, an analyst with Lazard Capital Markets, reports Tech Trader Daily.

While WD has a portfolio of SSD, sales of such products remain at a low level. The new acquisitions should help the company to provide competitive solutions over the long-term future.

Tags: Western Digital, WD, Business, SSD


Comments currently: 0

Add your Comment

Related news

Latest News

Monday, July 28, 2014

6:02 pm | Microsoft’s Mobile Strategy Seem to Fail: Sales of Lumia and Surface Remain Low. Microsoft Still Cannot Make Windows a Popular Mobile Platform

12:11 pm | Intel Core i7-5960X “Haswell-E” De-Lidded: Twelve Cores and Alloy-Based Thermal Interface. Intel Core i7-5960X Uses “Haswell-EP” Die, Promises Good Overclocking Potential

Tuesday, July 22, 2014

10:40 pm | ARM Preps Second-Generation “Artemis” and “Maya” 64-Bit ARMv8-A Offerings. ARM Readies 64-Bit Cores for Non-Traditional Applications

7:38 pm | AMD Vows to Introduce 20nm Products Next Year. AMD’s 20nm APUs, GPUs and Embedded Chips to Arrive in 2015

4:08 am | Microsoft to Unify All Windows Operating Systems for Client PCs. One Windows OS will Power PCs, Tablets and Smartphones