Seagate has been making a steady income on selling hard disks for the past 30 years. The company now makes about $10 Billion a year on the sale of hard disks. But this is all about to change as the company goes full steam ahead into the newer flash storage market. While others have entered into the market, Seagate has been slow to enter this new storage market.
According to one article it states the following:
The move means that Seagate isn’t religious about hard drives; rather, it is focused on the storage market, regardless of technology. It’s a hedge strategy, as it diversifies the hard drive maker into a part of the market that could eat away at its core business.
While flash-based devices are still more expensive in a cost-per-megabyte measure, they are about 50 percent more efficient, Mosley said. But SSDs have an advantage over hard drives in the fast reading or writing of data. Seagate’s devices can read data at 30,000 operations per second and write data at 25,000 operations per second. That’s about 100 times faster than a hard drive. Because of these kinds of speeds, Seagate already uses flash chips in its hard drive products, mostly as buffers for temporary storage of a small amount of data that must be accessed quickly.
This doesn’t mean that Seagate is giving up on hard disks, as the devices with rotating disks still dominate in about 93 percent of the overall storage market, accounting for 10.6 exabytes of storage. An exabyte is, um, a very big number: a billion gigabytes. So far, SSDs have been expanding the market, getting into the lightest netbooks, which are smaller than laptops and are meant for surfing the web. But Seagate’s move shows that flash can also be useful in servers.
I am sure that SSD storage will be the future, we may not see less inexpensive units for awhile. I would estimate that we are looking at about 5 to 10 years before pricing becomes less expensive. SSD is going to be the future and will replace the hard disk eventually.