Seagate taps Israel-based DensBits for cost-cutting SSD tech

Seagate taps Israel-based DensBits for cost-cutting SSD tech

Summary: While the prices of solid state drives are dropping rapidly, the average price per gigabyte is still a bit rich for the tastes of some. Fortunately, Seagate is working to change that by working alongside Israel-based DensBits Technologies, which Seagate has nabbed a stake in.

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TOPICS: CXO
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While the prices of solid state drives are dropping rapidly, the average price per gigabyte is still a bit rich for the tastes of some. Fortunately, Seagate is working to change that by working alongside Israel-based DensBits Technologies, which Seagate has nabbed a stake in.

Seagate's interest in DensBits lies in Memory Modem, a controller technology that allows for reliable transfers and error-correction in NAND flash-based drives.

The move is a big deal for Seagate, which, like its competitors, is quickly ramping up its investment in solid state drive tech. The ideal result is pretty obvious: Cheaper solid state drives, which are becoming an increasingly key part of a variety of mobile devices (which, in turn, are becoming a key part of, well, everything).

Alongside the partnership, Segate is also making an equity investment in DensBits, though neither company is saying just how much money is being put in.

Segate has been making a lot of big moves in the solid state drive space, starting with its buy of Samsung's hard drive business last year. The purchase, which was sung to the tune of $1.4 billion, showed just how serious Segate was about the future of storage technology, despite the continuing demand for spinning drives.

One of the big fear with the move was that it would create a veritable duopoly between Seagate and Western Digital, the two of which control 90 percent of the HDD market.  While the true ramifications of the move have yet to really surface, consumers might be assuaged by Seagate's purported commitment to lowering, not increasing prices.

Topic: CXO

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