Solve : Feds Should OK HDD Mergers?

1.	Solve : Feds Should OK HDD Mergers?
Answer» Just published on Forbes Quote Tom Coughlin Storage Bytes Why Government Regulators Should Approve Hard Disk Drive Company Consolidation May. 31 2011 - 3:33 pm \| 857 views By TOM COUGHLIN The author makes a case why upcoming HDD company mergers are important to maintain the health of the HDD companies that remain as well as to continue to deliver the enormous value that HDDs have given their customers. Furthermore, HDDs face intense competition from solid state storage devices and new investments in R&D and capital equipment will be needed to maintain the cost per byte advantage of HDDs and thus ensure their continued unit shipment and storage capacity growth. More stable and even somewhat higher HDD prices, resulting from the Western Digital/Hitachi GST and Seagate/Samsung mergers will assist in this technology transition and enable even greater storage values for customers in years to come..... Full Story...In my opinion this following statement is at best presumptuous and lacks evidence ."Fewer companies in this industry will RESULT in better CONTROL over their inventory and lessened market uncertainty and competition will allow the remaining three HDD companies to be able to make the technology and capital investments that this industry requires." In most cases (and i see no reason to suspect this is any different) competition is a product motivator in all its parts.Price/quality/innovation/etc. Less competition can result in the opposite of the improvements that competition brings. When the state of monopoly arrives then the worst of the absence of competition arises. I think the declining sales of traditional HDD are ATTRIBUTABLE to many factors. Such as the availability of alternatives IE: portable usb flash drives/increased storage capacity of bigger and bigger HDDs/ new technologies/etc. Had i any influence with the parties who will ultimately ponder on this i would advise the opposite of the quoted author. truenorthThe only businesses that are ever threatened by improved technologies are those that need to be left BEHIND. Quote from: BC_Programmer on June 04, 2011, 11:45:22 AM The only businesses that are ever threatened by improved technologies are those that need to be left behind. +1

Answer»

Just published on Forbes
Quote

Tom Coughlin
Storage Bytes
Why Government Regulators Should Approve Hard Disk Drive Company Consolidation
May. 31 2011 - 3:33 pm | 857 views
By TOM COUGHLIN

The author makes a case why upcoming HDD company mergers are important to maintain the health of the HDD companies that remain as well as to continue to deliver the enormous value that HDDs have given their customers. Furthermore, HDDs face intense competition from solid state storage devices and new investments in R&D and capital equipment will be needed to maintain the cost per byte advantage of HDDs and thus ensure their continued unit shipment and storage capacity growth. More stable and even somewhat higher HDD prices, resulting from the Western Digital/Hitachi GST and Seagate/Samsung mergers will assist in this technology transition and enable even greater storage values for customers in years to come.....

Full Story...In my opinion this following statement is at best presumptuous and lacks evidence ."Fewer companies in this industry will RESULT in better CONTROL over their inventory and lessened market uncertainty and competition will allow the remaining three HDD companies to be able to make the technology and capital investments that this industry requires." In most cases (and i see no reason to suspect this is any different) competition is a product motivator in all its parts.Price/quality/innovation/etc. Less competition can result in the opposite of the improvements that competition brings. When the state of monopoly arrives then the worst of the absence of competition arises. I think the declining sales of traditional HDD are ATTRIBUTABLE to many factors. Such as the availability of alternatives IE: portable usb flash drives/increased storage capacity of bigger and bigger HDDs/ new technologies/etc. Had i any influence with the parties who will ultimately ponder on this i would advise the opposite of the quoted author. truenorthThe only businesses that are ever threatened by improved technologies are those that need to be left BEHIND. Quote from: BC_Programmer on June 04, 2011, 11:45:22 AM

The only businesses that are ever threatened by improved technologies are those that need to be left behind.

Solve : Feds Should OK HDD Mergers?

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