[HN Gopher] Western Digital to spin off flash business
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       Western Digital to spin off flash business
        
       Author : dm_me_dogs
       Score  : 76 points
       Date   : 2023-10-30 14:29 UTC (8 hours ago)
        
 (HTM) web link (www.theverge.com)
 (TXT) w3m dump (www.theverge.com)
        
       | bragr wrote:
       | So saddle all the legacy liabilities in with the legacy business
       | and slowly suck out the equity, while the flash business grows? I
       | can see how that's a win for investors at least. Are the flash
       | products still going to be branded WD?
        
         | cogman10 wrote:
         | Yup. Seems like an increasingly common move by businesses. AMD
         | did this with global foundries, for example.
        
           | halJordan wrote:
           | Im not following the surprise or maybe incredulity of this
           | sentiment. It's normal and healthy for businesses to shed
           | poor performers and merge to create synergies. The food
           | majors went through this in the 2010s and nobody was crying
           | or implicating malfeasance. The market should be reacting,
           | that's what makes it useful.
        
             | cogman10 wrote:
             | There's a difference between what is good for the public,
             | what is good for the market, and even what's good for a
             | business's long term outlook.
             | 
             | The issue with spinning off losers and acquiring winners is
             | the prioritization of short-term gains over long term
             | gains. Further, I dispute that it's motivated by "the
             | market" and not the gambling habits of corporate leaders.
             | 
             | Take, for example, HP's purchase of Palm for 1 billion
             | dollars. But then a few months later, they let go of
             | basically the entire palm staff. Then they created their
             | webos tablet, then they killed it just a few months after
             | launch. Then they let webos linger until finally selling
             | rights to it to LG of all places.
             | 
             | You certainly can argue "this is just the market being
             | efficient" but was it? Or was it overpaid C level
             | individuals making big bets, failing, and punishing their
             | employees for their incompetence?
        
         | dehrmann wrote:
         | Some companies have done this recently (J&J, iirc), but the
         | article didn't mention any liabilities WD was trying to shed,
         | and both these businesses are viable, so I'm not sure if this
         | was just a knee-jerk corporate criticism or there's something
         | to this.
        
           | SSLy wrote:
           | Spinning rust side is only living because of price collusion
           | by the flash vendors. Price for 8TB of TLC generic is
           | currently 170 USD. QLC is cheaper than that.
        
             | dehrmann wrote:
             | That's actually a valid reason to spin off a business,
             | especially if you happen to know you'll cross the
             | inflection point in ~5 years. It isn't the same as the
             | "legacy liabilities" game, though. Some investors want the
             | growth business, some want the stable business, some want a
             | cheaply-priced declining business (seriously; look into
             | anything that pays royalties).
        
             | mbreese wrote:
             | Spinning rust is still useful for many purposes and will
             | probably live on for decades more. We generate a ton of
             | data and most of it ends up as read rarely or never. But it
             | can live with slower access times on longer duration
             | storage.
             | 
             | It's honestly just like tape. There will be an HDD market
             | for a long time that will be hidden in the whirl of data
             | centers. Consumer HDD will slowly melt away, but the
             | price/byte and durability of disk will keep it viable for
             | quite a while. It's still faster than tape (but not as
             | cheap).
        
               | SoftTalker wrote:
               | > Consumer HDD will slowly melt away
               | 
               | I'd say it already has. Does any consumer PC come with a
               | spinning disk anymore?
        
               | purpleflame1257 wrote:
               | Many consumer PCs will come with both a smaller capacity
               | SSD and a higher-capacity HD.
        
         | kstrauser wrote:
         | Nailed it. They've been spending goodwill like crazy with
         | debacles like pushing out SMR junk under the Red name.
         | 
         | In my experience, their overall quality control has plummeted
         | over the last few years. I've bought 3 Red drives for my home
         | Synology. After about a year with each, the drive utilization
         | graph will start creeping up toward a steady 100% while the
         | other drives in the RAID are mostly idle. All drives have the
         | same throughput. All drives have the same IOPS. And yet, the
         | Red starts taking longer and longer to complete its requests.
         | There aren't any SMART errors or warnings. If I pull the drive
         | and run WD's diagnostics, it's fine. It shows every sign of
         | being perfectly healthy, other than being dog slow up until the
         | day I replace it. I'm 3-for-3 with this happening. Maybe I'm
         | the only person and they work great for everyone else. I won't
         | buy another, though.
         | 
         | I think we're seeing WD turn into HP. People will still buy it
         | for the name on the label, but those in the know will steer
         | their friends to calmer waters.
        
           | lloydatkinson wrote:
           | I also had two Reds showing bad sectors after around a year,
           | with a Synology. What "colour" drive do you usually buy now?
           | Or even which manufacturer?
        
             | sersi wrote:
             | I've switched to only buying Toshiba, been very happy with
             | them. They're also more silent as a bonus.
        
             | kstrauser wrote:
             | I've had good luck with Seagate Iron Wolves. They're a
             | little noisier than others, but I've never had one fail.
             | The Toshiba I've had in there for 3 years has also been
             | fine.
             | 
             | After years of seeing many brands of drives go through good
             | and bad years, I'm hesitant to recommend any particular
             | manufacturer. Seagate had a rough stretch, but they seem to
             | be pretty good right now. WD used to be great, and now I
             | don't want anything to do with them. Anytime I look for a
             | new drive, I check out the latest Backblaze report and hope
             | for the best.
        
           | Scoundreller wrote:
           | HP or HPe?
           | 
           | Basically the same segmentation of "good business" and "bad
           | business" there too.
        
         | ginko wrote:
         | Feels like the HDD business is the more stable of the two. The
         | competition in the flash/SSD market if fierce.
        
           | kstrauser wrote:
           | True, but it's clearly the future, at least for mass market
           | devices.
           | 
           | There's still a place for buggy whip makers. The remaining
           | ones can charge an arm and a leg because the few remaining
           | ones generally compete on quality. I bet that's what we'll
           | see for HDDs soon.
        
             | rasz wrote:
             | NAND is unable to replace HDD for long term storage.
        
               | kstrauser wrote:
               | Yes, and that's an important market. I suspect that it's
               | tiny compared to the mass market devices I mentioned.
        
       | ulfw wrote:
       | I will never waste money on a Sandisk SSD again. My last one
       | stopped working out of nowhere. Much happier with my Crucial X10.
        
         | tentacleuno wrote:
         | On the contrary, my Sandisk SSD I got around (roughly) 6 years
         | ago is still happily working, despite being utilised for a
         | _lot_ of writing. It 's gone through 3 house moves, and it's
         | still going strong -- what a great purchase.
         | 
         | My 2 Crucial MX500 SSDs have been pretty solid too; nothing bad
         | to report on them.
         | 
         | Re: your SSD, did you RMA it?
        
         | splix wrote:
         | There is no brand that never produced a SSD with a fault. I had
         | tried all major HDD/SSD brands, and I think every single of
         | them failed at some point.
         | 
         | What is important is how they handle that. I had a faulty
         | Sandisk and it was replaced with a working one without any
         | problem or unnecessary question. Some other brands annoy you
         | with stupid questions, puzzles and other tricks trying to avoid
         | doing a replacement. And some just ignore any requests (ex.
         | Samsung, from my experience) to replace a faulty SSD.
        
           | dboreham wrote:
           | I've never had a problem with Intel, but they sold that
           | business recently.
        
             | vluft wrote:
             | they had a whole series that would irretrievably die after
             | 1700 idle hours due to a firmware bug.
        
             | duffyjp wrote:
             | This summer I bought two Intel 2TB nvme drives for $65
             | each. Not the newest tech but I've also never had a problem
             | with an Intel SSD. I still have my original 40GB from 2012
             | in an old laptop and it works just like new.
             | 
             | The company that bought their SSD division (Solidigm)
             | supports the Intel branded drives, and their utility had
             | firmware updates ready to go for the ones I bought.
             | 
             | I'd probably buy a Solidigm if I needed a new drive and
             | these firesale Intel drives are gone.
        
               | caycep wrote:
               | It's the Koreans - SK Hynix bought it and is using it as
               | their consumer drive division. The P44 Pro is supposed to
               | be a more reliable and cheaper competitor to the Samsung
               | 990 pro...but that unit is also not doing so hot w/ the
               | memory downturn/post-covid correction
        
               | toast0 wrote:
               | > Not the newest tech but I've also never had a problem
               | with an Intel SSD.
               | 
               | I used to run Intel (enterprise) SSDs in servers. I
               | didn't run enough other SSDs to have a sense for whether
               | the failure rate was abnormally high, but it was
               | definitely not zero (it was significantly less than the
               | enterprise hard drives we were running). And the failure
               | mechanism was sudden disappearance from the bus.
               | 
               | My message to you is not to avoid Intel SSDs, just to
               | make sure you have a backup in place, because when they
               | fail, my experience is there's no warning, they just
               | disappear. This seems to be the common failure mode for
               | all/most SSDs, even though they're supposed to fail read-
               | only. Hard drives usually give warnings as they fail, but
               | not always enough warning to rescue data.
        
             | rasz wrote:
             | Lets not forget killing the drive instead of going read
             | only, and later lying about this being intended outcome
             | despite opposite statements in official documentation.
             | 
             | https://techreport.com/review/26523/the-ssd-endurance-
             | experi...
             | 
             | "After a reboot, the SSD disappeared completely from the
             | Intel software. It was still detected by the storage
             | driver, but only as an inaccessible, 0GB SATA device.
             | 
             | According to Intel, this end-of-life behavior generally
             | matches what's supposed to happen. The write errors suggest
             | the 335 Series had entered read-only mode. When the power
             | is cycled in this state, a sort of self-destruct mechanism
             | is triggered, rendering the drive unresponsive."
        
           | starttoaster wrote:
           | > and I think every single of them failed at some point.
           | 
           | I understand that you probably are alluding to the fact that
           | you never scientifically measured this experiment and that
           | this is anecdotal. But this is pretty loose verbiage when
           | we're talking about a product that is guaranteed to fail at
           | some point or another. These are a wear item.
        
       | Obscurity4340 wrote:
       | It would be such a great headline if they worked disk and/or disc
       | into it somehow
       | 
       | Like
       | 
       | > Western Digital spins Disk+Disc Businesses off
        
         | HPsquared wrote:
         | Or how it's a bad sector to be in.
         | 
         | Edit: I'm sure the editorial staff at The Register are
         | brainstorming a headline at this very moment.
        
           | Obscurity4340 wrote:
           | Something, something, disc-injury spin from disc/disk
           | industry on worker injuries
        
           | nix0n wrote:
           | > I'm sure the editorial staff at The Register are
           | brainstorming a headline at this very moment.
           | 
           | They're "disc"-ussing it.
        
             | Obscurity4340 wrote:
             | Curses ;)
        
         | skaushik92 wrote:
         | They probably needed to prioritize getting the article out fast
         | over coming up with good headlines since it's a flash sale
        
       | greatgib wrote:
       | Usually stock investors don't like diversification within
       | companies. It is harder to value.
       | 
       | I think that they realized that there is not so much in common
       | between the HDD and flash business. No added value to own the 2
       | business compared to separated entities.
       | 
       | With that, the WD legacy HDD business can continue as a dividend
       | stock dying slowly. And the flash business can now pretend to
       | crazy valuations based on a shinny future.
        
         | adventured wrote:
         | It might also free up the flash business to make aggressive
         | acquisitions without worrying quite as much about anti-trust
         | from having a larger position in the overall storage market due
         | to the old HDD business (which is dominated by just three
         | firms).
         | 
         | The stand-alone HDD business will end up as an acquisition in
         | the not-distant future (Toshiba, Seagate, etc. somebody will
         | eat it).
        
       | sgerenser wrote:
       | They need to come up with a good name for the flash business.
       | Maybe something that indicates their products are like disks, but
       | made from silicon instead of spinning rust. SiliconDisk? Maybe
       | Sand-Disk? Or simplify that to Sandisk?
        
         | chemmail wrote:
         | The answer is obvious. Eastern Digital.
        
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       (page generated 2023-10-30 23:01 UTC)