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The Impact of Thailand Flooding on Enterprise Storage

Most IT professionals are aware that recent flooding in Thailand has had an impact on the Hard Disk Drive manufacturing industry.  The impact has been most immediate on disk drives used in PC’s and Industry Standard Servers (ISS) because the drive types used by these products are manufactured by the companies in these locations.  For the most part, Thailand does not supply Enterprise Hard Drives for Data Center disk arrays. 

 The most direct impact to enterprise storage from the Thailand floods is regarding component supply.  The extent of this impact over time is uncertain.  The consensus opinion from Storage Array manufacturers is that the impact of the Thailand flooding can potentially be the biggest swing factor regarding their sales over the next six months, especially toward the end of that timeline.  However, most did large buys of hard drives as the current situation was unfolding.  Therefore, they have most of the capacity they need for the next quarter, but possibly not all of it.

Although enterprise class drives are considered to be the least impacted, Softchoice still anticipates some amount of supply and pricing complexity.  The predictions of the industry analysts and the drive vendors themselves contain information that is conflicting, and most of it is changing daily in regards to scope and ultimate impact.

 Other things to keep in mind that mitigate the impact of the Thailand floods are [Read more…]