1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (42) 

This Technology Company Will Allow Investors to Benefit From Storage Developments

August 27, 2014 | About:

Sandisk (NASDAQ:SNDK) has been disrupting the advanced storage industry for long. The flash memory maker, recently, stood out as truly newsworthy when it uncovered its Ulltradimm solid-state drives, or SSDs. Also this new item dispatch, similar to its previous successful ones, appears generally positioned to fast track the chipmaker's development going ahead.

Overwhelming technologies

Investors should note that the mass-well known SATA interface doesn't offer the fastest information transfer rates or access latencies. Actually, SATA controllers can make an inactivity overhead of 1µ second because of their design issues. Consequently, SATA drives aren't by and large prepared in elite registering machines.

At the same time SATA drives have a great spin-speed of 7200 rpm, SAS drives offer a much faster spin of around 15,000 rpm. Plus, their controllers can simultaneously access numerous drives. The Pcie interface, be that as it may, is the fastest amongst its specified peers. Using software drivers, a processing processor is straightforwardly equipped to speak with Pcie-based drives. This lowers the disk dormancy, however its software drivers consume around half of CPU resources. Thusly, none of the said technologies offer seamless information transfer without drawbacks.

Quick flash

Sandisk's entrance into the field of DIMM-perfect SSDs, with its Ulltradimm drives, was a standout amongst the most prominent developments in the NAND industry this year. These modules are designed to chip away out of gear DRAM slots, which connects the NAND module specifically with the CPU without requiring any driver support.

Consequently, Sandisk's Ulltradimm drives sport an extensive low compose inactivity of 5µ seconds. This is around 800 times faster than traditional hard drives, and around 10 times faster than established and enterprise-favored Pcie-based SSDs – something that proves especially useful in CPU and disk intensive tasks like high recurrence exchanging, or online transaction processing.

RBC estimates that the entrance rate of DIMM-devoted Ssds will achieve 10% in 2015. What's more Sandisk, as of now the main openly listed adult NAND producer to offer this progressive engineering, will be one of the few suppliers of this innovation.

Broad landscape

This cutting edge engineering as of now has a real purchaser. IBM (NYSE:IBM), one of the heading elite server manufacturers, has signed-up with Sandisk to prepare these speedy drives in its X6 servers. This highlights IBM's proceeded with efforts to hold its piece of the overall industry in the high-margin and superior server segment.

According to a research firm, Intel (NASDAQ:INTC) is the largest maker of enterprise-scale SSDs. The organization, then again, at present has no plans to wander into the DIMM-committed SSDs. On the off chance that the interest for these drives picks up quickly going ahead, Intel should seriously mull over entering the segment. By then, be that as it may, Sandisk would've established its market position and perhaps even altered known bugs with these cutting edge memory modules.


Needless to say, if gear manufacturers take after IBM's footsteps and prepare Ulltradimm drives in their top-level servers, Sandisk's business position will further strengthen. This would move Sandisk's development going ahead, as RBC's earnings projections estimates. Hence, investors should choose to invest in SanDisk for the long run to benefit from a growing technology.

Rating: 0.0/5 (0 votes)


Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by rsconsultant

User Generated Screeners

AxelSalonenGrowth & True Value
gelayor65All Stocks With Blackrock Sell
jgmarisafricaGurus growth low profitability
cspunarMinimum diagonal
cspunarFund List A
cspunarFund List
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat