The price of enterprise SSDs and storage systems is also skyrocketing

According to the market researcher, the strongest demand is for 8 terabyte enterprise SSDs, which are expected to persist in the third quarter. At the same time, according to TrendForce, a shortage of components could easily develop, which will result in a 10-15 percent price increase in the market of large enterprise flash-based drives, compared to the 5-10 percent expected so far.

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According to TrendForce research, there are several factors behind the surge in demand: Large North American cloud providers (hyperscalers) have completed inventory adjustment processes, after which they will continue to expand their storage capacities. In parallel, they continue to order large quantities of enterprise SSDs from their traditional, large server manufacturers for their products, thanks to the high demands on a variety of servers.

Last but not least, the production of the latest server platforms from Intel and AMD is just in its infancy, prompting more and more companies to switch. This typically involves the replacement of complete servers that also contain more or less SSDs, depending on the type. Newer servers come with typically higher capacity density drives, which also contributes to the growing demand for more storage products.

According to TrendForce, the current situation favors Samsung, which dominates the memory market and produces in-house not only NAND flash chips, which are the core of SSDs, but also the controllers that are essential for them. The market researcher expects the South Korean player could further increase its market share, which could result in a value above 50 percent in North America by the end of the third quarter. Leveraging its stronger position than at present, Samsung will have even more influence in shaping the pricing of SSDs.

In contrast, Intel could be a potential loser in the situation. The manufacturer is currently struggling with the lack of voltage control chips (PMICs) required for drives, while for some time now focusing on the production of QLC-based products. In contrast, the demand for more rugged and faster TLC-based SSDs remains high in the enterprise market.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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