Flash memory storage provider
) recently unveiled its latest X300s SSD, thereby enhancing its
solid state drive (SSD) portfolio. The newly-launched SSD will
cater to the needs of emerging IT enterprises, secure data and
enhance the performance of data centers and client computing
The newest X300s SSD leverages Trusted Computing Group's (TCG) Opal
) hardware-based encryption to enhance overall drive capacity,
reliability and performance. Moreover, the encryption is combined
with a new SSD administration dashboard to support audit and
The X300s SSD comes in 64 gigabytes (GB) to 1 Terabytes (TB)
capacities and will be available from June through SanDisk's
Commercial Business Channel (CBC). We believe that with this new
launch, SanDisk will strengthen its market position.
As per technology research firm Gartner, the total SSD market is
projected to reach $19.4 billion in revenues in 2014, up from $9.2
billion in 2012. Gartner also said that SanDisk has the potential
to secure 10.0-12.0% revenue share by 2014, up from 3.0-4.0% share
at the end of 2012.
To further secure the newly-launched X300s SSD, SanDisk is
) Embassy Security Center (ESC) encryption software for free. The
software offers a user and password set-up, which provides an extra
layer of security for the enterprises using the SSD.
Wave Systems offers simple, cost-effective solutions that protect
the user at the hardware level, eliminating or reducing the need
for software layers. Wave Systems' cloud-based solutions will
primarily help SanDisk to improve its offerings in segments such as
fraud protection, endpoint security as well as threat intelligence
We believe that the Wave Systems partnership bodes well for SanDisk
as it will enable the company to offer products with enhanced
security level at a lower cost. This, in turn, will help SanDisk to
emerge as a major player in the fast growing flash memory market,
thus lending greater stability to its revenue stream.
Although lackluster PC sales and European headwinds remain
concerns, the improving revenue stability boosts SanDisk's
competitive position against the likes of
Micron Technology Inc.
). However, currency fluctuations could hurt fundamentals to some
Nonetheless, we remain positive on management's commentary of a
turnaround in the coming quarters and strong secular demand for its
flash-based storage products.
Currently, SanDisk carries a Zacks Rank #2 (Buy).
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