Best of the Week
Most Popular
1.Oil Wars 2016 - US vs Russia vs Saudi Arabia vs Iran - Nadeem_Walayat
2.Crude Oil Price Crash Triggering Global Instability, Trend Forecast 2016 - Nadeem_Walayat
3.Stock Market Crash - Last Week was The 2nd and Final Warning... - Clive_Maund
4.Stock Market Crash Apocalypse or Bull Market Severe Correction? - Nadeem_Walayat
5.TShipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt? - Jeff_Berwick
6.Crude Oil Price Crash Catastrophe, Independant Scotland Literally Begging to Rejoin the UK - Nadeem_Walayat
7.Summers: Global Economy Can't Withstand Four 2016 Fed Hikes - Bloomberg
8.Gold And Silver: New World Order: Public Be Damned, Preferably Dead - Michael_Noonan
9.Rigged U.S. Ttreasury Bond Market Double Barreled Hidden Q.E. To Infinity - Jim_Willie_CB
10.Major Stocks Bear Market Awakening - Zeal_LLC
Last 5 days
Gold Stocks Something has Changed - 6th Feb 16
UK Interest Rates, Economy GDP Forecasts 2016 and 2017 - 6th Feb 16
Gold Price, Mining Stocks Rocket Higher - 5th Feb 16
Crude Oil Price Bottoms and Blues - 5th Feb 16
Gold and Silver: Ripe for a Recovery! China May well Change the Game - 5th Feb 16
How Pension Plans are Responding to Financial Repression - 5th Feb 16
Senior Gold Producer Goldcorp Takes Large Stake in Nevada's Gold Standard Ventures - 5th Feb 16
Tips for Smart Oil and Natural Gas Investing 2016 - 5th Feb 16
Another Corporate Giant Is Leaving the U.S. – What This Means for You - 4th Feb 16
TPP is Economic Warfare, Trade Can Make Everyone Worse Off / Governments are Stupid - 4th Feb 16
Gold and Stock Markets Inflection Points Galore - 4th Feb 16
Putin Cries Dyadya (Uncle), Is Saudi Arabia Listening? - 4th Feb 16
Gold Price Golden Bottom? Video - 4th Feb 16
Look North for Value-Priced Growth in Healthcare Biotech Stocks - 4th Feb 16 - TLSReport
BrExit EU Referendum - Britain's FINAL Chance for Freedom From Emerging European Superstate - 4th Feb 16
HUI Now Confirming Gold Price Move Higher - 4th Feb 16
Crude Oil Price Forecast 2016 As Good As It Gets - 4th Feb 16
Gold and Silver More 'Flight To Safety' Active February - 3rd Feb 16
Raytheon Company: A Defensive Stock for a Defensive Market - 3rd Feb 16
Is Silver Really a Weak Link - 3rd Feb 16
Gold to Beat Stocks 2016? - 3rd Feb 16
David Chamberlain Cameron, Britain's Last Chance for Freedom From Emerging European Super State - 3rd Feb 16
EU UK Draft or Daft Agreement By Donald Tusk to Members of the European Council in Full - 2nd Feb 16
Europe: Why It's Going to Get a Lot Worse Before It Gets Better - 2nd Feb 16
The Next Generational Bust Is Coming, Stock Market 70% Collapse - 2nd Feb 16
The Coming Stock Market Decline May be a Monster - 2nd Feb 16
S&P 500 Has Likely Entered a New Bear Phase - 2nd Feb 16
How and Why To Move Your Assets Offshore Before the Financial Collapse - 2nd Feb 16
Central Bank Created Silver Price Rally - 1st Feb 16
The Fed Is Not Hiking Rates: Risk Assets To Perform - 1st Feb 16
US Dollar and US Treasury Bonds Big Picture - 1st Feb 16
BOJ Negative Interest Rates Central Banking Crime Syndicate's War on Cash for Triggering Panic Consumption - 1st Feb 16
Elites Set to Wipe Out Stock Market Shorts Before Next Downwave... - 1st Feb 16
Stock Market A-B-C Correction Unfolding - 1st Feb 16
Nice week for Gold : It’s All about Sentiment - 31st Jan 16
Silver Price Breaks Higher on Rising Anxiety - 31st Jan 16
Stocks Bear Market Rally Underway - 30th Jan 16
Gold And Silver Current Prices Do Not Matter - 30th Jan 16
Gold Price Potential Upside 2016 - 30th Jan 16
Stock Market Bears Pulverised by BOJ Knock Out Punch, Non Technical Take Video - 30th Jan 16
Lacy Hunt: Inflation and 10-Year US Treasury Yields Headed Lower - 30th Jan 16
The Curious Case of Copper... - 30th Jan 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Global Financial Crisis 2016

Helium Filled Hard Drives Could Turn Western Digital Into a Big Winner

Companies / Tech Stocks Jan 16, 2013 - 11:12 AM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: With the commodities boom still in full swing you are probably aware the advantages of owning stocks related to gold, silver or other hard assets.

But when was the last time you heard someone extolling the investment virtues of helium?

And I'm not talking about helium as most folks think of it - in those giant (and comically overpriced) party balloons.


You see, a unit of disk-drive maker Western Digital Corp. (NasdaqGS: WDC) says it's discovered a way to help pump up the corporate computer networks around the world.

It'll debut later this year. And helium will be the active ingredient.

Helios ... the Greek God of High-Tech Profits
Named for the Greek god Helios, helium is created by the sun's nuclear power plant (by fusing hydrogen), and is vital for life on earth.

If you're finding it tough to make the mental jump from Greek gods and life-giving forces to life on the Nasdaq, that's understandable.

So just focus on another "life force". It is the force behind the one key challenge that businesses all around the world confront each and every day.

I'm referring to "Big Data."

A full 90% of the digital data that exists in the world today has been created in the last two years alone.
And with all the new videos, song files, photos, blog posts, business records and Websites that continue to be created, we're producing an additional 2.5 quintillion bytes of data each and every day.

Think about biotech research into gene therapies, social networks with billions of photos, and Web search indexing. Ditto for the millions of electronic transactions that major global retailers conduct per hour.

All those bytes have to sit somewhere.

And Western Digital says it's developed a new device that can really help - with a big assist from helium.

Helium-Filled Drives Are a Blockbuster Breakthrough
The Irvine, Calif.-based company's product is a new disk-drive architecture that's aimed at computer networks and data centers.

Filled with helium gas, the drives can deliver the faster speeds that become more critical each day - and can boost storage capacity by as much as 25% to 50%, Western Digital says.

The firm extolled those features as key to lowering overall ownership costs but declined to estimate how much clients will save by adopting this platform. Western Digital says it will debut the drives by the end of this year.

The helium hard-disk drives - which have already been christened as "Helium HDDs" in tech-sector shorthand - are a major milestone in the rapidly growing field of materials science. It's the first time computer engineers have put helium to this use (conventional hard drives are now filled with air).

And some experts are already predicting a blockbuster breakthrough.

Taking the whole market into account, the tech-oriented research firm IHS predicts sales of 100 million helium-filled hard drives by the end of 2016 - that's just three full years of sales.

Direct comparison of sales rates for new products in the business class computer market are hard to come by. But if the IHS forecast turns out to be correct, then the new helium-drive technology would be a blockbuster - on par with the iPhone.

Apple Inc. (Nasdaq: AAPL) released the trend-setting smart phone in June 2007. Since that time, it has remained in the vanguard of the mobile wave and continues to earn rave reviews.

According to a recent story in Popular Science, Apple has sold more than 228 million units of the pioneering smartphone worldwide in the five years since its launch.

Now then, Western Digital almost certainly won't have the whole helium-drive market to itself.

In fact, I would be surprised if archrival Seagate Technology PLC (NasdaqGS: STX) doesn't at least announce a competing design by the end of this year, or in early 2014 at the latest.

After all, the two firms remain in a disk-drive dogfight. With 48% of the hard-drive market, Seagate holds the top spot. But Western Digital is close on its heels, coming in at 45%.

IHS didn't estimate the value of the overall market; but the two firms have total combined sales of roughly $28 billion.

Technological challenges, patent protections and manufacturing costs (the drives are more-complex - and thus more costly - to produce) could augment Western Digital's head start and allow it to extend its lead, at least for a time.
Indeed, IHS believes the new technology could give Western Digital the lift it needs to take over as the industry leader: A Computerworld story that appeared just as we readied this report for you was topped by the headline: "Helium-Filled Hard Drives May Lift WD to the Top."

Right now, that's just conjecture. But here's what we can say: Western Digital's growth strategy is paying off.

That's because the helium array is the brainchild of Hitachi Global Storage Technologies, or HGST. Lured by Hitachi's high-tech portfolio, Western Digital bought the firm in March 2011 for $4.3 billion in cash and stock.

Fast-forward two years and we can see that helium-filled hard drives offer several advantages. Because helium is one-seventh the density of air, the gas lessens the drag on the spinning disk stack. That's also true of the arms that position the heads over data tracks.

The format also allows disks to be placed closer together. In this array, seven discs will now fit in the space that formerly held only five. And because helium conducts heat better than air, the new drives will run cooler and emit less noise.

Add it all up, and Western Digital seems to have a real winner on its hands...

As science fiction is transformed into science fact, the world advances at warp speed. And by uncovering the innovations that are fueling that transformation, we can discover and offer to you the cutting-edge opportunities to profit - here in the Era of Radical Change.

Source :http://moneymorning.com/2013/01/16/the-fiscal-cliff-deal-just-made-bonds-even-more-risky-in-2013/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History