Feeds

EMC hikes drive prices, blames Thai flood tragedy

Others big storage array and server suppliers may follow

Next gen security for virtualised datacentres

El Reg has been sent a copy of a letter from EMC to its Velocity channel partners saying disk drive prices will rise 5 to 15 per cent from 1 January, 2012.

It is apparent the price rise is due to drive shortages caused by the Thailand flooding. This has caused retail drive prices to rise and impacted many disk drive OEM deals as well.

However, no major storage array or server supplier has, until now, signalled that they will have to raise prices too.

EMC HDD price rise letter

EMC disk drive price increase letter

The text of the letter says:

Attention: Important Change to Drive Pricing in January 2012

The tragic, persistent flooding in Thailand has impacted the cost of hard disk drives in the global marketplace. EMC typically adjusts drive pricing on a quarterly basis, passing through cost changes from our suppliers, usually in the form of lower drive prices. In Q4, EMC did just that, absorbing the cost increases in order to shield our partners and customers from the impact of higher drive pricing.

We have determined however that we must raise prices in Q1 for an indefinite period of time in order to offset the continued high drive prices we are seeing from our primary suppliers. As a result, our Q1 2012 HDD list prices will rise between 5-15% over Q4 2011 levels. This increase will apply to HDD list prices across all EMC business lines.

All current pricing will be honored until the end of 2011. This increase will not take effect before January 1, 2012. While we hope that this increase is temporary, at this time we cannot forecast how long the flooding in Thailand will impact HDD pricing.

Please prepare your customers for this increase. Do not allow them to be surprised by the increase after it takes effect. Please direct any questions to your EMC Distributor or EMC Channel Account Manager.

Thank you for your continued support and partnership.

Gregg Ambulos
SVP Global Channel Sales
EMC Corporation

We have asked EMC for a comment but, as yet, have not received a response. Other storage array suppliers, such as NetApp, are not known to have similar price increases coming. But it would not be a surprise if increases started happening as a result of EMC opening this door. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.