Feeds

STEC on a roll for enterprise SSDs

$120m SSD supply to an array supplier

Beginner's guide to SSL certificates

STEC is trumpeting a $120m supply deal to a large enterprise storage customer - EMC, HP or IBM, we reckon - emphasising it's virtually the only solid state disk supplier in town for enterprise hard drive arrays.

STEC expects that revenue from the sale of its ZeusIOPS hard disk drive replacement SSDS will exceed $220m in 2009. In June STEC expected ZeusIOPS revenue for the first half of 2009 to pass $80m. They passed $55m in the second quarter, meaning they did around $25m in the first quarter and are likely to do $140m in the second half. It's some sales ramp.

Here's a thought: if these SSDs replace Fibre Channel drives, and short-stroked Fibre Channel drives at that, then for every ZeusIOPS sold there is a quantity of Fibre Channel drives not sold. How many?

A 320GB ZeusIOPS could replace just one 300GB Fibre Channel drive on capacity, but they are being used to replace multiple hard drives on IOPS terms. STEC says "one ZeusIOPS drive can replace the transactional performance of more than two-hundred 15,000rpm enterprise class disk drives."

We can't really expect a 200:1 replacement ratio, can we?

Since STEC SSDS vary in capacity we'd have to guesstimate how many hard drives a single STEC SSD replaces on average, and then we'd have to guesstimate how many SSDs are needed to generate $220m of revenue, and for that we'd need to understand STEC's OEM pricing. All this is going to be very closely guarded information.

Let's do a back-of-an-envelope job and assume an average $220 price per ZeusIOPS, meaning STEC will sell a million of them this year. Assume a 10:1 replacement ratio for fast hard drives and that's 10 million hard drives that haven't been bought. Assume a 100:1 replacement ratio and that's 100 million spinning blighters left in the stockroom.

Whatever the replacement ratio, Seagate and other fast enterprise hard drive suppliers must be noticing these lost sales.

To cap that, just last week STEC bragged about a $28m supply deal for its MACH8 SSDs to a US defence systems contractor building systems for the US military. Enough already! ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.