Thailand floods spur rush to SSDs
The surge is expected to be short-lived, however
Computerworld - Rush orders for solid-state drives (SSDs) increased last month in the wake of massive flooding in Thailand that caused a serious drop in hard disk drive supplies.
According to DRAMeXchange, a research division of TrendForce, rush orders for SSDs rose even as shipments of end-market products, including PCs, smartphones and tablet PCs, continued to drop because of sluggish economic conditions.
Another NAND flash product, memory cards, saw a huge decline in sales due to the Thai floods, which closed down digital camera factories.
More than a dozen hard disk drive (HDD) factories have been shut due to flooding in Thailand. PC manufacturers have been bracing for significant supply shortages.
In the first half of 2011, Thailand accounted for 40% to 45% of worldwide hard disk drive production. As of early November, nearly half of Thailand's production was directly affected by the flooding. While production at some factories was halted, the industry also faces stoppages due to poor access and power outages.
According to market research firm IDC, the full extent of the damage to hard drive factories won't be known until floodwaters recede, although it's already clear that there will supply shortages into the first quarter of 2012.
Hard drive prices should stabilize by June, IDC said, and the industry should be back to normal by the second half of 2012.
Fang Zhang, a storage analyst with market research firm IHS iSuppli, said the price of hard drives has been rising for both system manufacturers and consumers. In some cases, they're up more than 30%.
But those price hikes aren't likely to drive most buyers to purchase pricier SSDs.
Zhang said anyone purchasing a $700 PC or laptop isn't likely to spend hundreds of dollars more on an SSD. SSDs will continue to be reserved to a niche market of high-end applications and users.
"SSDs are still way too expensive," she said. "They're at least 10X what hard drives cost."
Zhang sees more of a market for SSDs and flash memory in ultrabooks and tablets, which depend on lightweight, durable storage.
Forrester analyst Andrew Reichman agreed, saying there has been a lot of talk throughout the industry about the hard drive shortage possibly spurring SSD sales, but he's wary of that buzz.
On the storage array and server manufacturing front, Reichman said vendors typically stockpile hard drives so that they have at least a five-month supply.
"There's definitely market buzz about it, but it's not that well founded. Most users are struggling with capacity growth and keeping costs down, so going out and finding ways to boost performance is not the highest priority," Reichman said.
- Reduce IT Burdens: Regulation, Legal Hold & Discovery Download this white paper to learn how Delphix can be an integral part of ensuring your archiving strategy actually enables your business.
- Budd Van Lines Moves Data Closer to Home Shipping and logistics company Budd Van Lines uses Infinio to improve performance on their VDI environment. The company employs a virtualized datacenter based...
- Storage Performance with Cost Control As IT groups expand their server virtualization initiatives, central storage performance can become the bottleneck and create poor end user experience.
- Server-side Caching for the VMware Admin vExpert David Davis weights in on how best-in-class server-side caching solutions can drastically improve storage performance and reduce latency without the addition of...
- The Key to Happiness: Throw out Your Data Warehouse In this webinar, Kerry Reitnauer, Director, Solution Architect at FairPoint Communications will discuss the challenges the data warehouse brought, how they migrated to...
- The Next Generation of Affordable Storage As data needs continue to grow and capacity expansion becomes a necessity, companies of all sizes have to address the delicate balance between... All Data Storage White Papers | Webcasts