Feeds

Krakoom! OCZ flies into the ground. Time to salvage the engines and look around

Hey, where is everyone? In a room with a flash fab operator

Providing a secure and efficient Helpdesk

Blocks and Files Ryan Petersen made OCZ a high-flyer: and then nearly piloted it into the ground. Replacement CEO Ralph Schmitt did crash-land the damaged business, but was unable to repair it and get it flying again. Bankruptcy beckons.

OCZ shot itself in the foot (causing its feet to slip from the rudder pedals leading to a crash -Ed) with daft customer-incentive programs that took more than a year to clear up, and then belatedly realised its mainstay consumer SSD market was no longer the domain of get-rich-quick component bundlers. The flash foundry operators and big OEMs were taking the market over at frightening speed.

So it changed focus to enterprise SSDs but it was too late; supplier consolidation was taking out excess suppliers there - witness WD and sTec - and that market was closed to a weakened SSD player under severe financial constraints and carrying a lousy brand image.

The thing of it is, the flash product market is maturing quicker than OCZ imagined. Consistent and secure NAND chip supply is crucial - are you listening to this LSI? - and so is owning your flash controller and management IP. Selling flash controllers to small-scale OEMs, like OCZ, is no way to build a secure and growing business.

OCZ's failure raises questions over all the other flash product suppliers with no reliable, secured flash chip supply: such as - we understand - Corsair, Plextor, Kingston, WD's Hitachi GST, LSI, OWC, Patriot, SuperTalent, and Viking Modular.

If OCZ assets get bought by Toshiba then, hopefully, existing OCZ customers will be able to get some kind of support. If not then they won't, and they have to buy new SSDs elsewhere. Then they'll likely go to suppliers who will stick around - the flash fab boys and their partners with end-user product, for instance (this isn't an exhaustive list) Intel, Micron, Samsung, SanDisk, Seagate, Toshiba and Violin Memory.

Both HGST and LSI need to get locked-in NAND chip supply deals arranged ASAP, in fact AFAP - as fast as possible. Ask yourself why EMC, Cisco and others should continue to source flash cards and SSDs from suppliers with no reliable NAND chip sourcing arrangements.

And that means suppliers like LSI and HGST. Both need to have supply arrangements in place directly with flash fab owners or their close partners to preserve product ship deals with EMC and the like.

And that means LSI and HGST have to negotiate with Micron-Intel, Samsung or Toshiba-SanDisk or SK-Hynix. They are probably already doing so. If not, then they really have to ask themselves why not. ®

Bootnote

HGST has an SSD developed with Intel so the possibility of a closer arrangement there obviously exists.

Choosing a cloud hosting partner with confidence

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.