Seagate announced today that they will be pursuing a controlling interest in LaCie. The two companies deal in complementary areas of the storage industry with Seagate manufacturing drives and LaCie developing mobile and desktop drive enclosures and NAS solutions. In order to achieve a controlling (more than 50%) interest in the company, Seagate has offered to purchase all of Philippe Spruch’s–LaCie’s Chairman and CEO–shares. In addition to shares from an unnamed affiliate, such a buy would net Seagate 64.5% of outstanding shares of LaCie stock. Seagate is offering the LaCie shareholders €4.05 (approximately $5.09 USD) for their stock, and may be increased to as much as €4.17 should Seagate get 95% of LaCie shares and voting rights within 6 months of closing.
The merging of Seagate and LaCie logos (hehe).
After acquiring a controlling interest, they would then work to buy back all other otustanding shares with a cash offer. The initial purchase of stock is still pending governmental approval. Ricol Lasteyrie & Associates has been appointed as an independent expert by the board of directors for LaCie to examine the offer and determine whether or not to accept. Should it go through, Philippe Spruch would join Seagate as the president of Seagate’s consumer storage division. He would have the current Seagate vice president Patrick Connolly and LaCie deputy general manager Pierre van der Elst reporting to him. At this time, Seagate has not disclosed how much the former LaCie employees would be paid to work for Seagate. If all the appropriate governing bodies “okay” it, the buyout is expected to happen in the third quarter of 2012 (Q3 2012).
Steve Luczo, Seagate chairman, president and CEO was quoted in the press release in stating: “Seagate has a strong commitment to the growing consumer storage market and bringing the most dynamic products to market. LaCie has built an exceptional consumer brand by delivering exciting and innovative high-end products for many years. This transaction would bring a highly complementary set of capabilities to Seagate, significantly expand our consumer product offerings, add a premium-branded direct-attached storage line, strengthen our network-attached storage business line and enhance our capabilities in software development."
The combination of Seagate and LaCie seems odd a first, because LaCie does not manufacture their own drives (so it’s not a hard drive patent portfolio Seagate is after); but they are actually complementary services. While Seagate has the hard drive storage down, LaCie has a lineup of drive enclosures and NAS boxes. By combining the two, Seagate can manufacture the drives and the enclosures themselves. Seagate does currently have a few enclosures but their expertise is primarily in the drive technology itself. The opposite is true to Lacie, so the two companies coming together is a good thing for Seagate. One thing that LaCie has done that instantly benefits Seagate is focusing on high end and premium drive enclosures. While Seagate has focused on low and midrange drive enclosures, LaCie has solely focused on high end. This is beneficial because Seagate can integrate those higher profit margin premium LaCie products into their lineup without the need for extensive research and development. Whether it will also result in an improved product lineup and/or cheaper products for consumers remains to be seen, but it has the potential to be a good thing.
Subject: Storage | March 20, 2012 - 01:27 PM | Tim Verry
Tagged: storage, Seagate, hard drives, HAMR, density, 1 Tb/in^2
In April 2006 Seagate began shipping the first 3.5" desktop hard drive using Perpendicular Magnetic Recording (PMR) technology and since then PMR has become essential in allowing all of the hard drive manufacturers to create the 2 TB+ drives available today. As we approach the limits of what drive manufacturers are able to do using PMR alone; however, they are starting to look at additional technologies to boost the storage density. One such technology on the horizon is Heat Assisted Magnetic Recording, or HAMR. According to a recent press release, Seagate is not only experimenting with HAMR but is the first drive manufacturer to use HAMR to reach 1 Terabit per square in of areal density.
HAMR works by using a laser to heat up the storage medium before the compounds used to store data have their orientation aligned by the write heads of the drive. As bits get smaller and smaller, traditional magnetic recording methods are not strong enough to permanently change the magnetic orientation of the bits, which means that there is an inherent, if theoretical, minimum bit size and corresponding maximum storage density possible with current Perpendicular Magnetic Recording. HAMR further allows drive makers to get around that limitation by heating the physical bits to the point that traditional magnetic write heads can change the orientation.
Via Bit-Tech. The laser heats up the platter before being written to.
The current 1 Terabit per square inch achieved using HAMR is also the theoretical maximum storage density for PMR alone (as mentioned above), which is promising as it implies HAMR still has a lot of working room to improve and has matched the maximum proposed for PMR.
Seagate expects to use HAMR to produce 60 TB+ 3.5" and 20 TB+ 2.5" hard drives within the next ten years. To put this areal density in perspective, current 3 TB desktop drives feature approximately 620 Gigabits per square inch while current 750 GB laptop (2.5") drives feature about 500 Gigabits per square inch. Interestingly, when comparing the 1 Tb/in^2 mechanical drive density to flash (ie SSD) storage at equivalent densities, it works out such that a single bit equals 1nm of flash storage!
Unfortunately, we won't be seeing 60 TB drives any time soon. Rather, Seagate expects 6 TB desktop drives and 2 TB laptop drives to be the most immediate benefits of the heat assisted recording technology. Still, as my 2 TB drive is filling up more quickly than I ever imagined (thanks to working with HD video and making regular backups of data), I welcome as much increased storage as I can get!
Introduction, Hardware Vendors
This year's South by Southwest (SXSW) Trade Show brought together many small and global companies with computer hardware and information technology backgrounds as well as creative industries that produce art, music, and movies. SXSW interactive badge holders and showcased artists got an inside look at the newest innovations in mobile social media platforms and applications, open source web content management systems, professional audio/video technologies, and other multimedia products.
Since I write for PC Perspective, I narrowed the focus of my trade show coverage to companies creating innovative computer hardware, PC and Mac peripherals, and other gadgets that may interest our readers. I also scoured the rest of the trade show for the best booth babes handing out swag and watching other fun, promotional events to get expo visitors to engage with companies to find out more about their products.
See our video coverage of the SXSW Trade Show!
Subject: Storage | December 30, 2011 - 09:45 AM | Allyn Malventano
Tagged: western digital, wdc, Warranty, Seagate, hitachi, hdd
It's been a few short months since Thailand saw some serious flood damage. The flooding had a huge impact on everything from Automobile production to the making of fiber optic cables. The largest impact to the computer industry was that of storage devices. While flash memory fabs were spared, makers of HDD components were hit hard.
Hitachi plant in Thailand, partially submerged.
This effect quickly trickled down to the HDD quickly spiking prices by nearly 200% by Halloween. Inventories remained at critically low levels for a 60-day window - long enough to have far reaching impact on the PC industry as a whole. With a key component missing from PC production chains, the effects caused dips in demand from the PC suppliers, eventually trickling back up the chain to other component makers. Intel was forced to scale back their chip production. The industry finally saw a reprieve just a few weeks ago, as HDD production recovered sufficiently as to begin the slow replenishment process, and it started to look like everything would be ok.
...and then the other shoe dropped.
Right as HDD Suppliers started catching up on supply, Western Digital made a surprising announcement. Starting on January 2nd of next year, most of their drive lines will see a drastic reduction to warranty periods. Caviar Blue, Caviar Green, and Scorpio Blue drives see a 50% drop from 3 to 2 years. Seagate quickly jumped on the bandwagon, cutting the 5-year warranties of several of their lines down to three. Even worse, the Baracuda, Baracuda Green, and Momentus (laptop) drives will be cut from five all the way down to 1-year warranties. Seagate's reductions go into effect December 31, 2011.
The Momentus XT, while technically a Hybrid SSD/HDD, was not spared in the warranty cuts.
This isn't the first time warranties saw an across-the-board cut in duration. Back in 2002, Western Digital and Seagate (as well as Maxtor - since acquired by Seagate), jointly cut their warranties back to just one year. The reasoning back then was claimed to be strictly business, and that it was done to be in-line with the 1-year warranty provided by PC OEM's, but was that the only reason? We would need a bunch of data on HDD failure rates to know for sure...
Subject: General Tech, Storage | December 20, 2011 - 02:52 PM | Jeremy Hellstrom
Tagged: Seagate, Samsung, sale, partnership, hdd
Back in April of this year we heard that Samsung was going to spin off its HDD department, handing the entire compliment of staff, equipment and trademarked names to Seagate for about $1.4 billion USD total. Today that sale is complete as Seagate announced the final approval of the acquisition. This means very little for the consumer over the next 12 months, and not just because of the lack of available HDDs. Samsung's branding will remain on their HDD lines for the next year and as the entire Samsung team and facilities came with the rights to the products the design and assembly teams will be the same as when they were owned by Samsung.
Fans of Samsung notebooks and other PCs will also be unaffected as those products tended to utilize Seagate HDDs already, as the two companies have had a long and tight partnership. After a year we may see many of the Samsung lines disappear as they are folded into pre-existing Seagate product families, though it seems reasonable to hope that the new products will represent the both of best worlds.
CUPERTINO, Calif.--(BUSINESS WIRE)-- Seagate Technology plc (NASDAQ:STX), a world leader in hard disk drives and storage solutions, today announced the closing of the transaction to acquire the hard disk drive (HDD) business of Samsung Electronics Co., Ltd., a world leader in digital consumer electronics and information technology.
Under the terms of the transaction, Seagate has gained select elements of Samsung’s HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. These assets include Samsung’s leading M8 product line of high-capacity, 2.5-inch HDDs. Samsung employees joining Seagate include a number of senior managers and design-engineering employees from Samsung's Korea facility, who will focus on development of small form-factor products for the mobile compute market. N.Y. Park, senior vice president and general manager, will oversee Seagate’s product development activities in Korea and serve as country manager of the Korea design center, reporting to Bob Whitmore, Seagate’s executive vice president and CTO.
“Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps in order to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage,” said Steve Luczo, Seagate chairman, president and CEO. “It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage.”
This transaction was announced in April 2011 along with a series of other agreements between Seagate and Samsung. Seagate is supplying disk drives to Samsung for PCs, notebooks and consumer electronics devices. Samsung is supplying its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid-state hybrid drives and other products. The companies have also extended and enhanced their existing patent cross-license agreement and have expanded cooperation to co-develop enterprise storage solutions.
“The strategic relationship will open new opportunities for the two companies by mutually complementing each other’s creative technology solutions for a broad diversity of IT applications,” said Oh-Hyun Kwon, vice chairman of Device Solutions of Samsung Electronics.
The transactions and agreements substantially expand Seagate’s customer access in China, Southeast Asia, Brazil, Germany and the Russian Federation. Seagate and Samsung also have been working together to ensure that customers continue to receive a high level of service, support and innovation, including activities to align the two companies’ supply bases and delivery infrastructure. To ease the transition of products and technologies, Seagate will retain certain Samsung HDD products under the Samsung brand name for 12 months, and maintain or establish a number of independent operations including sales staff, key production lines and R&D. Customers can find more information at www.seagate.com/samsung.
The combined value of these transactions and agreements is approximately US $1.4 billion, consisting of 45,239,490 Seagate Ordinary Shares and the remaining balance settled in cash. In addition, Samsung will designate a nominee to join Seagate’s Board of Directors.
Seagate does not presently expect significant restructuring costs and expects to achieve considerable reductions in overall operating expenses for the combined business while minimizing the integration costs. As previously stated, Seagate expects that the transactions and agreements will be meaningfully accretive to non-GAAP diluted earnings per share and cash flow in the first full year following the closing. Seagate will provide additional financial information for the combined company on its fiscal second quarter conference call in late January.
Subject: Storage | December 18, 2011 - 11:20 AM | Ryan Shrout
Tagged: WD, thailand, ssd, Seagate, hdd, Hard Drive, flooding
The hard drive industry might be recovering more quickly than expected and the entire tech field should be hoping that is the case. We have been covering the unfortunate disaster in Thailand and the accompanying disruption in the world of storage since things first started hitting the fan in October. The initial result was a very dramatic price increase on traditional spinning disks - prices going up as much as 200% in some cases. This week we got our hands on some very interesting data from Dynamite Data, a company focused on channel monitoring, that they were willing to let us share with you.
First, the bad news that we already know about - the price increases we have seen percolate throughout the entire industry in the last two months.
Click to Enlarge
This graph shows the average price of the top 50 spinning disk drives over the last year in red and the very specific Western Digital Velociraptor 150GB pricing on Amazon.com in blue. You can see that around October 16th the big price increase began and over the entire ecommerce span that Dynamite Data monitors, prices on the top 50 HDDs went up by 42%. And while not shown in the graph, other provided data shows that at its peak the low-cost leaders in the HDD market increased their prices by 150% as of early December.
Why did this happen? Looking at inventory levels clearly shows the drop in availability.
Click to Enlarge
Based on those same top 50 SKUs, we saw ecommerce inventory drop by 90% in late October (in less than one week!) after the first impact on the supply chain that occurred on October 8th. What is interesting is that it took a week or more for the price changes to take place based on the analysis of the disaster in Thailand. Much to the dismay of many of the conspiracy theorists out there though this data definitely backs up the price increases from WD, Seagate and others.
There is an uplifting bit of news in both of the above the graphs though - look towards the end of the time lines of gathered data. Both show movement in the direction of consumer's interests: a jump in inventory and a drop in average pricing. WD announced on November 30th that the first of its production facilities was back online and we are already seeing results. Of course the CEO of Seagate is still claiming that it will take more than a year for the industry to recover but it looks like supply may increase at a quicker rate than initially expected.
Finally, just for a bit of added bonus coverage, many have wondered if the price increase on traditional spinning drives would affect the pricing of SSDs. Well, it looks like did at least for a 10 day span.
Click to Enlarge
Over the last year prices for solid state drives have dropped by 23% on the top 50 devices available with one minor hiccup. In a 10 day period between the end of October and early November, there was an SSD price increase that isn't explainable by any kind of inventory changes or supply line changes. This was likely due to the HDD shortage and vendors looking to maximize profits when consumers didn't have access to the low cost hard drives they were used to. But because the price increase lasted such a short time I think we can clearly see that customers didn't fall for the ploy and the hiccup was quickly self-corrected.
Even though we have been monitoring prices on our own since the Thailand disaster first occurred, it is great to get some hard data to put alongside our presumptions. While there is tons of bad news still to digest for at least the first two quarters of 2012, the information provided by Dynamite Data provides some hope that the worst is behind us. If you are interested in more analysis of this data and you will be at CES in January, you should stop by the Storage Visions conference where there will be a short talk on the topic.
Back in 2006, storage tech talk was intermittently buzzy with a few different innovations. One was wrapped around the pending release of Windows Vista, particularly two bullets on its feature list: ReadyBoost and ReadyDrive. In parallel with all of the Ready_____ talk, many tech pundits asked why it would be necessary to have the flash talk to Windows through special drivers. Why couldn't the flash memory just act like a larger RAM cache already present on?
A prototype ReadyBoost-enabled HDD by Samsung.
The answer, which nobody was aware of at that time, was that management of flash memory was a tricky thing to do successfully. It would not be until several years later that SSD's would (mostly) beat the issues of Long Term Performance and other issues that crop up when attempting to store randomly written data onto a device that can only be erased in relatively large blocks.
ReadyDrive required a special 'Hybrid' disk drive to be connected to and recognized by Windows Vista, containing both spinning platters and flash memory. Vista would then place frequently used small files on the flash. Since flash memory has negligible access times when compared to seek times of a HDD, the drive overall would boot significantly faster. Other tasks using those cached system files also saw a benefit. While ReadyDrive looked great on paper, there were very few devices ever released that could take advantage of it. Seagate was the earliest to release such a drive, and their Momentus 5400 PSD laptop drive did not see the light of day until Vista was nearly a full year old.
Subject: Storage | November 29, 2011 - 06:19 PM | Jeremy Hellstrom
Tagged: hybrid, momentus XT, hdd, ssd, Seagate, sata 6Gbs
Over the past few years Seagate has been trying to perfect a way to get the best of both storage worlds by combining an SSD as a semi-permanent cache for a large platter based hard drive. The new Seagate Momentus XT is the third generation of this series, a 750GB HDD with a 8GB SLC SSD available to cache frequently used files and are calling it FAST (Flash-Assisted Storage Technology). Legit Reviews investigated their performance claims, after repeatedly using the drive to fill the cache as this drive will perform exactly like the platter based drive it is until that cache has moved frequently accessed or slow to load files into the flash memory. It did seem to reduce boot times and program loading to almost SSD levels, though it does not effect infrequently used programs. It was significantly less expensive than an SSD so if you tend to do similar tasks on your PC every day and need the large storage space this drive might just be for you.
"Overall, we'd certainly recommend the Momentus XT and frankly wouldn't go back to a plain old hard drive unless we were forced to. The expediency of boot and application load times are something that, once you get used to it, you can't seem to live without. Keep in mind that it may take two or three times for the Adaptive Memory Technology to decide that it should be cached and speed things up. On the down side, every operation is not SSD fast, especially if you're performing it for the first time..."
Here are some more Storage reviews from around the web:
- Seagate's Momentus XT 750GB hybrid hard drive @ The Tech Report
- Seagate Momentus XT ST750LX003 Hybrid 750GB Review @ OCC
- Seagate Momentus XT 750GB Hybrid Hard Drive Review @ Hardware Canucks
- Seagate Momentus XT Solid State Hybrid @ Benchmark Reviews
- Seagate Momentus 7200.5 750GB Hard Drive Review @ Legit Reviews
- Western Digital Scorpio Blue 1TB 5400RPM @ Tweaktown
- QNAP TS-879U-RP High Performance SMB NAS @ CoD
- Thecus N8900 8-Bay Rackmount NAS @ Tweaktown
- Synology DiskStation DS712+ NAS Review @ TechwareLabs
- QNAP TurboNAS TS-219P II NAS Server Review @ Real World Labs
- Corsair Performance Pro 256GB SSD Review @ HardwareHeaven
- OCZ Vertex 3 Max IOPS 120GB Review @ HCW
- Silicon Power Diamon D05 USB 3.0 External Drive @ Bjorn3D
- Patriot Pyro SE 6Gbps 240GB SSD Review @ The SSD Review
- Kingston HyperX 3.0 128GB 8-Channel USB Flash Drive Review @ Real World Labs
Subject: General Tech | November 29, 2011 - 12:23 PM | Jeremy Hellstrom
Tagged: Seagate, hdd, earnings
It seems very interesting that Seagate is so upbeat about their earnings with the flooding in Thailand causing huge supply shortages of HDD world wide. Last year at this time they were expecting 170 million units move, whereas this year is is 110-120 million units with demand outstripping supply. That number does reflect some supply issues but perhaps not as bad as the issues faced by Western Digital and other manufacturers with a large presence in Thailand. The profit being higher does show what happens when you have a product people want but cannot find; the price per unit quickly goes up and the business can still make a profit. We can only hope that as supply returns to the chain that the price drops at the same speed it has risen. We still do not have final word on Seagate's absorption of Samsung's HDD business, that will likely be in January.
CUPERTINO, Calif.--(BUSINESS WIRE)-- Seagate Technology plc (NASDAQ:STX) today updated its financial outlook for the December 2011 and March 2012 quarters.
The company continues to believe that, due to the industry impacts caused by the extensive flooding in Thailand, hard disk drive supply will be significantly constrained for several quarters. For the December 2011 quarter, the company believes the industry will ship between 110-120 million units.
The company believes the industry’s ability to manufacture and ship hard disks drives will gradually improve throughout calendar 2012. While this may alleviate some of the unit demand shortfall, it is expected that some companies will optimize unit shipments by manufacturing lower component count/lower capacity hard disk drives; thereby, only modestly offsetting the growing petabyte shortage. Because demand is estimated to significantly exceed supply during this time, pricing is expected to remain stable.
The company’s component and disk drive factories in Thailand have not been directly affected by the flood; however, the company’s ability to manufacture hard disk drives has been impacted due to external component supply constraints as first disclosed on October 12, 2011.
For the December 2011 quarter, the company now expects unit shipments of approximately 43 million units and revenue of approximately $2.8 billion. Gross margin as a percent of revenue is expected to be 150-300 basis points above the high-end of the company’s long-term, targeted gross margin range of 22-26%. Operating expenses (R&D and SG&A) are expected to be approximately $400 million. Expenses related to the acquisition of Samsung Electronics Co., Ltd’s (“Samsung”) hard disk drive business and any revenue or operating expenses of the acquired business following the closing date cannot be estimated at this time and are therefore excluded from this outlook. The company continues to expect to close the acquisition of Samsung’s hard disk drive business by the end of December 2011.
The company’s outlook for the March 2012 quarter assumes requisite regulatory approvals are received and the Samsung acquisition closes in December of 2011. The company also continues to work with its external suppliers to restore the component supply chain, and now expects that in the March quarter it will be capable of shipping a mix of products in terms of capacity per drive and expected market similar to pre-flood levels. Currently, for the March 2012 quarter, the company expects unit shipments to increase sequentially. Revenue is expected to be at least $3.75 billion and gross margin as a percent of revenue is expected to be at least 300 basis points above the aforementioned targeted range of 22-26%. The outlook for the March 2012 quarter excludes certain costs related to the integration of the acquired Samsung hard disk drive operations which cannot be estimated at this time.
The financial outlook provided today does not include the arbitration award previously disclosed on November 21, 2011.
Subject: Storage | November 19, 2011 - 04:25 PM | Ryan Shrout
Tagged: thailand, Seagate, Hard Drive, flooding
Last month we noticed that hard drive prices were spiking very high and we took a quick look at exactly why this was: most notably, the devastating flooding in Thailand. While at one point you could buy 2TB hard drives for under the $100 mark when on special, those days seem long gone. Our original story quoted the CEO of Western Digital as saying it could take "multiple quarters" for recovery to occur.
Pricing graph from Pricegrabber.com for Western Digital Caviar Black 2TB
According to this quote seen on Bloomberg, Seagate's CEO, Stephen Luczo, says it might be much worse:
The projections by some Wall Street analysts that production will be back to pre-flood levels by summer are nonsense, Luczo says.
“This is going to take a lot longer than people are assuming, until the end of 2012 at least,” he says. “And by then, demand will have gone up.”
Well....crap. Users looking to build new systems or even buy them from third parties will likely see increases in costs because of this. And while not every need can really be addressed by SSDs (I type while looking for room on a system using one to install Skyrim...), the hard drive price increases could drive quicker adoption of solid state media in the near term.