Bellwether hard disk drive (HDD) maker
Western Digital Corp.
) is launching a fleet of storage solutions targeting the tablet
and data center space.
WD Se, which is an enterprise-class HDD, has been designed for
use in big data centers to scale-out their performances. Usage of
data centers are going up, but space storage remains the main
Western Digital's (or WD) Se HDDs are capable of storing 4-144
terabytes (TB) of data per square foot of data center. WD Se is
expected to lower the cost of ownership for the data centers with
minimal downtime, less supervision and efficient processing
speed. The use of WD Se HDDs will also generate less heat from
the data center.
Currently, the WD Se HDDs will be available in 2 TB and 4 TB
capacities at $159.99 and $309.99, respectively. The drives carry
a 5-year warranty.
WD also unveiled Travelstar 5K1500 HDD powered by Hitachi Global
Storage Technologies ('HGST'), a unit of Hitachi Ltd. WD closed
the acquisition in Mar 2012. The Travelstar 5K1500 HDD has a 9.5
mm form factor, 32 MB cache buffer and 6 Gbps SATA interface,
with a capacity to store up to 1.5 TB. The drive can be used in
notebooks, external drives, gaming consoles and all-in-one PCs.
The company expects to ship the HDDs by Jun 2013. The pricing of
the device has not been announced.
Apart from this, Western Digital also announced that it will join
) to introduce a solid state hybrid drive ('SSHD'). The drive
will feature SanDisk's flash memory technology and hard drive
technology from Western Digital. The new SSHD namely, WD Black
will offer hard drive-like capacity, slim form factor and flash
memory-like fast performance.
Western Digital has limited exposure to high-end corporate
desktop and enterprise server markets compared to its rival
Seagate Technology plc. But we believe that with the introduction
of WD Black (SSHD) in association with SanDisk and recently
introduced drives, WD will be able to grow its market share in
It has also been noticed that the company is slowly shifting
toward consumer electronics, branded and enterprise products. We
believe that this will prove beneficial for WD as dependence on
the PC market will be less.
We are also encouraged by Western Digital's impressive third
quarter 2013 earnings, which surpassed the Zacks Consensus
Currently, Western Digital has a Zacks Rank #2 (Buy). Investors
can also consider other storage stocks such as
Hutchinson Technology Inc.
), having Zacks Rank #2 (Buy) and have solid visibility.
HUTCHINSON TECH (HTCH): Free Stock Analysis
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SANDISK CORP (SNDK): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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