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

Next gen security for virtualised datacentres

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.

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.