Seagate’s three major advantages in customizing hard drives to seize AI business opportunities

Seagate (STX-US), a major hard disk manufacturer, emphasized today (17) that compared with enterprise-class SSDs, hard disks have three major advantages in price, supply and workload, and are indispensable in the AI-led future. It is a common myth in the market, and it is expected that the price per TB of enterprise-class SSDs will remain more than 6 times that of enterprise-class hard disks until at least 2027.

Seagate (STX-US), a major hard drive manufacturer, emphasized today (17th) that compared with enterprise-class SSDs, hard drives are indispensable in the AI-led future due to their three major advantages: price, supply and workload, dispelling common market myths It is also expected that the price per TB of enterprise-class SSDs will remain more than 6 times that of enterprise-class hard disks until at least 2027.
Seagate said that the scale of data growth is at a record high. The introduction of new AI applications highlights the value of large data sets. The amount of data generated by generative AI currently accounts for less than 1% of the total data amount, but according to Gartner, this proportion will grow to 20% by 2025. 10%.
Huang Youqing, general manager of Seagate Taiwan, emphasized that enterprises and large cloud data centers store the vast majority of the world\’s data sets and will become key storage locations for the data growth trend. The main medium for these data centers to store exabytes of data has always been the core role of hard disks. This will not change in the future.
Regarding the discussion on \”SSD\’s price competitiveness will soon catch up with hard disks\”, Seagate\’s research results from IDC, TRENDFOCUS and Forward Insights prove that hard disks will still be the most cost-effective choice for most enterprise storage needs.
It is expected that the price per TB of enterprise SSDs and enterprise hard drives will remain above 6x until at least 2027.
Regarding the myth that the NAND industry may quickly replace the storage capacity provided by hard drives, Seagate points out that the advantages of hard drives in effectively providing storage capacity for data centers are obvious and unquestionable.
According to the \”NAND Market Monitoring Report for the Fourth Quarter of 2023\” released by the industry analysis agency Yole Intelligence, using Seagate Technology as a representative sample of the hard disk industry, the production cost of NAND per ZB from 2015 to 2023 is approximately US$67 billion, while that of hard disks The production cost per ZB is approximately US$1 billion.
Hard drives cost-effectively meet nearly 90% of data center storage needs.
Seagate predicts that by 2024, the output of exabyte-level storage capacity of hard drives will be nearly three times that of SSDs.
Seagate further clarifies the statement that \”Flash alone can meet modern workloads\” ignores key aspects such as workload and performance requirements, as well as total cost of ownership (TCO).
In modern data centers, hybrid storage systems achieve excellent performance by seamlessly integrating multiple storage media into a single device, highlighting the important roles played by Flash and hard drives.
In the foreseeable future, hard disks will continue to be the main storage medium for exabyte-level storage environments.
Different media continue to work together in large-scale environments and are deployed based on storage needs to support various services.
Industry analysts predict that hard drives will be the biggest winner in the ongoing data growth trend of exabytes. It is expected that the storage capacity provided by hard drives will increase by 6,996EB from 2022 to 2027, while SSDs will grow by 1,363EB.
Huang Youqing added that hard drives and SDDs have been the backbone of the global digital infrastructure for decades and will continue to coexist in the market in the future.
However, in the foreseeable future, especially with the increase in magnetic recording density in products such as the Seagate Mozaic 3+ platform, hard drives will still dominate in providing exabyte-level storage capacity.

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