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Demand to grow for flash-based solid-state drives

By James Carbone -- Purchasing, 2/14/2008

Prices for solid-state drives and hard-disk drives should fall as the two storage technologies compete against each other.

At the recent Consumer Electronics Show, a number of flash memory solid-state drives were introduced for computer applications.

Samsung displayed a slim, solid-state drive designed for laptops and desktops with a capacity of 128. Flash-memory maker SanDisk Corp. unveiled a laptop drive with a 72GB capacity that weighs about 30% less than a hard drive of the same dimensions. Toshiba demonstrated its new line of solid-state drives for notebooks which will go into production this quarter. Its first drives will be offered in three capacities and will go into mass production this quarter.

Hard-drive makers also introduced small drives about the same size of a flash memory cards to compete with solid-state drives in portable electronics equipment which often use flash memory.

For instance Samsung also unveiled 30GB and 40GB versions of a 1.8-inch hard disk that fits in a CompactFlash drive. That's a record-breaking capacity for a storage component that size, according to Samsung.

At MacWorld Apple introduced its new 3 lb. portable computer, the MacBook Air. It will be equipped with either an 80GB hard drive, but a 64GB solid-state drive (SSD) is an option.

Apple's use of SSDs will help power growth of the flash memory devices.

The number of SSDs shipped will grow from 84,000 in 2007 to 1.5 million in 2008 and to 55 million by 2011 when 27% of notebook computers will be equipped with SSDs, according to researcher iSuppli.

Scott Nelson, vice president, memory business unit for Toshiba America Electronic Components in Irvine, Calif., says solid state drives will have so much growth because they offer performance advantages over hard-disk drives. Advantages include faster boot time, improved performance, fast random read and write, quieter operation and higher reliability.

"They also have the ability to withstand greater shock and vibration; and they weigh less," he says.

SSD revenue will grow from just $23 million in 2007 to a hefty $5.6 billion in 2011. The good news for buyers is that the price per SSD will fall each year, while the drive capacity will increase. For instance, the average price will drop from $274 in 2007 to $101 in 2011, says iSuppli. At the same time, average SSD capacity will increase from 34GB in 2007 to 125GB in 2011.

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