Feeds

EMC hikes drive prices, blames Thai flood tragedy

Others big storage array and server suppliers may follow

Internet Security Threat Report 2014

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. ®

Remote control for virtualized desktops

More from The Register

next story
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
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.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.