Early next year, Seagate is preparing a major push in Flash-based drives – also known as SSDs – and home entertainment devices.
The Scotts Valley, Calif., company said it is investing between $80 to $90 million a year in Flash technologies that will first be used in enterprise storage products.
“The enterprise is a good place to put SSDs where they are able to take advantage of the better performance. But that’s going to be only 5% to 10% of our enterprise market,” confided Seagate CEO Bill Watkins during a meeting with financial analysts this week.
Flash drives will be slow to take off
However, the world’s largest drive maker does not see Flash drives to make any real inroads in the more “conventional” notebook and desktop businesses, where PC makers want drive with capacities from 160GB to 300 GB and growing.
“Today Flash drives can not match the $40 or 50$ that we ask for a 300GB drive,” added Watkins who criticized Samsung’s upcoming 64G-byte three-bit MLC SSD in the first half of 2009 for being less reliable and less performance than previous generations of SSDs.
Although Seagate sees a significant volume opportunity in the netbook category, which more often than not are shipping with an embedded hard disk drive and not a Flash drive, extreme low prices are the major factor for staying away from this sector.
Whereas hybrid drives, that combine a traditional magnetic drive with some Flash memory on board that increase significantly a machine’s boot up time, could well take off before Flash-only drives if only the technology was better supported by operating systems vendors like Microsoft or Apple.
Posted by TechPulse 360 



