according to Latest report TrendForce, a Taiwanese analyst firm, said that the price of enterprise-grade solid-state drives (SSD) may increase in Q321. As the report suggests, the price of these SSDs may increase by 15%.
With the arrival of next-generation server platforms from the two major processor suppliers Intel and AMD, server shipments are expected to begin to grow substantially. Given that these new platforms are often equipped with fast storage, enterprise SSDs represent the storage solution of choice into these systems.
As the pandemic slows, TrendForce predicts that returning to the office will drive IT spending more than ever before, and storage will become one of the major areas of IT department spending. Intel will launch its Ice Lake Xeon processor, and AMD will launch its EPYC Milan series of server models, both of which will drive substantial growth in server shipments.
Global SSD production capacity increased by 7% month-on-month, and demand was strong. Due to short supply, prices will increase by 15%. According to reports, China’s super-large enterprises Alibaba and ByteDance will increase their spending on IT equipment, which will further promote enterprise-level SSD demand.
All of these add up to cause the price of enterprise SSDs to soar in the third quarter. However, it is expected that there will be a balance in the fourth and last quarters of 2021. As demand for server shipments slows in the fourth quarter, price increases for enterprise SSDs will adjust back to the normal fluctuations we saw at the time of writing. What this means for the future, we don’t know. So far, we can only look forward to a limited period of time in the future.
In terms of the adoption of new technologies in the enterprise sector, TrendForce predicts that once these processors are launched, the adoption of PCIe 5.0 and CXL (computing express link) for Intel Eagle Stream and AMD Genoa CPUs will further drive the demand for enterprise SSDs. Large memory manufacturers like Micron are already in the development phase of storage products that support CXL, which means that everyone expects that the demand for these new technologies will be quite high.
The report pointed out that the next few quarters will represent the price roller coaster of enterprise SSDs, and suppliers must “use their unique competitive advantages to compete for market share.”