Western Digital Gets Flash for Cash

Western Digital Gets Flash for Cash

Today, Western Digital entered the Solid State Disk (SSD) market through the acquisition of SiliconSystems.  Now that the $65 million cash deal is complete, integration into Western Digital begins immediately. SiliconSystems will now be known as the WD Solid-State Storage business unit.

SiliconSystems sells its SiliconDrive products to the embedded systems market for use in servers and storage devices. The drives are also used in areas such as network-communications, industrial, medical, military, and aerospace markets. Western Digital is hoping to exploit this product base as well as SiliconSystems’ cross-licensing agreement with SanDisk.

SiliconSystems accounted for a third of worldwide SSD revenues in 2008. SiliconSystems' product portfolio includes solid-state drives with SATA, EIDE, PC Card, USB, and CF interfaces in 2.5-inch, 1.8-inch, CF, and other form factors. SiliconSystems’ patented and patent-pending technologies including PowerArmor, SiSMART, SolidStor, and SiSecure help to ensure data integrity, eliminate unscheduled downtime, protect application data and software, and provide for data security and protection.


Western Digital has been focused on the SSD market prior to this acquisition with its own internal team, but as Avi Cohen, an analyst at Avian Securities, points out, this deal accelerates Western Digital’s time to market by enabling the company to enter the SSD market immediately.

This is a good time for Western Digital to get its hands on SSDs, considering more and more storage firms are throwing their weight behind the technology. SSD offer faster data access speeds than traditional hard disk drives. The technology has been gaining momentum, thanks in part to companies such as EMC, Sun Microsystems, and IBM who have pushed the technology.

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Way to go WD, heck of a move, and im sure their next two gen of SSD drives will come with more and more WD flavor and that WD speed. *drools at thought of the SSD raptor drive*

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I'm kind of amazed. I had just assumed they were already ready to ship their own products. Seems like they weren't, or that SiliconSystems owns some patents and it made more financial sense to buy the company outright.

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In my opinion, WD has been the best HDD company for awhile. It will be nice to still have them as a force in the market when we go to SSD.

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I'd go with Seagate rather than WD

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