Seagate’s latest DataSphere event allowed the company to talk about their shipping 18 TB HAMR HDDs and soon to come 20 TB drives as well as their CORTX open source intelligent object storage software. CORTX software is used on the Lyve Drive Rack for up to 1.7 PB of object storage.
According to recent data from Wells Fargo analyst Aaron Rakers using data from Trendforce and TrendFocus, enterprise solid state drives (SSDs) generally cost $185/TB and nearline hard disk drives (HDDs) cost about $19/TB, so enterprise SSSDs have a 9.7X price premium in $/TB, that has been relatively constant, as shown below. This disparity in prices for storage capacity is the primary reason that mass storage in data centers uses high capacity HDDs.
Seagate Technology’s primary business is building and selling HDDs, although it has some business with enterprise SSDs in partnership with Intel. The companies HDD business generated $2.3 B in revenue in CQ2 2020, while enterprise data solutions and SSDs generated $195 M. The company sold mostly to OEM’s (74% of their business). Seagate sold more HDDs than any of the other HDD vendors through CQ2 2020 (44% of total shipments compared to 37% for WDC and 19% for Toshiba).
Seagate sold even higher percentage of nearline (high capacity enterprise) HDDs at about 52% of the total CQ2 2020 nearline HDD shipments. Large capacity HDDs, including nearline HDDs show the greatest growth in HDD shipments compared to legacy applications such as personal computers and consumer electronics where SSDs or network storage are gradually displaying HDDs. The average sales price (ASP) for HDDs has been increasing with the increasing percentage of shipping higher ASP, higher margin, nearline