Storage solutions provider
Western Digital Corp.
) recently introduced WD Black2 dual drive. The new hybrid dual
drive storage solution, which could be used for upgrading
notebooks, single slot and all in one systems and small form
factor desktops, provides hard disk drive (HDD) capacity
and solid state drive (SSD) level performance.
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This storage device is expected to enhance overall drive
capacity, reliability and performance. It offloads data
usage from the SSD to the HDD, which increases the life of a SSD.
The launch of WD Black2 dual drive will help WDC to meet growing
business needs with flexibility and offer improved user
Additionally, the new hybrid solution is compatible with laptops,
PC operating systems ranging from
) Windows XP to Windows 8.1, which will enables users to manage
huge volumes of digital data from computers and mobile devices.
However, this Black2 combo SDD/HDD is currently not compatible
) Macintosh devices.
The new WD Black2 dual drive features a 2.5-inch 120 GB SSD with
a 1 TB HDD. It also provides 20nm architecture with quad
channel NAND processing and 8 GB of space that provide a powerful
dual drive solution. The WD Black2 dual drive comes at a
Manufacturer's Suggested Retail Price (MSRP) of $299 and is now
According to IT research firm Gartner, worldwide HDD shipments
are expected to grow at a compound annual growth rate (CAGR) of
2.8% for 2012 to 2017 period. Moreover, market research firm IDC
anticipates revenues from SSDs to increase from $2.5 billion in
2012 to $7.0 billion in 2017.
We believe that Western Digital's new hybrid dual drive product
will benefit from pent up demand in the storage market going
Of late, Western Digital has been expanding its presence in the
SSD storage market due to a sluggish demand in the PC market
(which primarily relies on HDD). SSDs are now being used in
servers due to the reduction in latency, which in turn helps in
faster response to real-time applications. Therefore, focusing on
SSDs for the enterprise segment looks like a smart move in the
However, increasing competition from companies like
) and Fusion-io, Inc. in the storage space coupled with
continuing macroeconomic weakness are significant headwinds in
the near term.
Currently, Western Digital has a Zacks Rank #3 (Hold).