Western Digital's Deal to Acquire Hitachi's HDD Business Approved

Western Digital has just secured conditional approval from the European Union's competition regulator to purchase Hitachi's hard disk drive business for a grand total of $4.3 billion. This was only made possible, however, after Western Digital agreed to sell several of its production operations.

Western Digital, which just so happens to be the world's second largest competitor in the hard disk drive (HDD) sector, and Hitachi, which just so happens to be the third largest, unveiled the deal back in March. The deal itself is aimed at giving the United States company a competitive edge in developing next-generation information storage technology.

This decision by the European Commission confirmed a story published last week by Reuters. According to European Union Commissioner Joaquin Almunia in a recent statement, "The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented."

Western Digital PDA did promise to sell essential production assets for the manufacturer of 3.5" disc drives, including a production plant, according to the Commission, which cited reduced competition in the sector after Seagate Technology bought Samsung Electronics' hard disk drive business recently. In addition to that the company agreed to transfer or license intellectual property rights to the business to be sold off. What's more is that Western Digital will also transfer staff and the supply of HDD components to the unit.

Western Digital is unable to complete the deal until it finds an appropriate buyer for the unit, which will then need to be approved by the regulator, according to the commission. If Western Digital is unable to find a suitable buyer, it stands to reason that this deal, although approved, will never actually come to fruition, which could be disappointing for both companies.

Source: Reuters - Western Digital cleared to buy Hitachi disk drive business

HDD Shortages to Spill Over into Q1 2012

Considering operations are disrupted at over a dozen hard disk drive (HDD) factories thanks to flooding in Thailand, PC manufacturers should begin preparing for significant supply shortages according to market research firm IDC. Worldwide HDD shipments could suffer almost a 20% decline starting in the middle of this month that could extend far into the first quarter of 2012 according to the firm.

Thailand accounts for somewhere between 40% and 45% of HDD production in the entire world. As of early November, almost half of Thailand's production was directly affected by flooding. Even though production at some factories was halted as a result of flooding, the industry also faces work stoppages due to poor access and power outages. The full extent of the damage to the industry will not be known until all the floodwaters recede, even though it is already clear that there will be supply shortages into the first quarter of 2012 according to IDC.

Research Vice President at IDC John Rydning stated earlier in the month that hard drive manufacturers will favor their high-margin products used in enterprise servers and storage systems. "But the HDD vendors can't neglect their smaller customers, whose business will continue to be important once capacity is fully restored." Prices for HDDs have already started to increase rapidly in some cases, some by more than 30%.

IDC noted that the industry should be able to restore drive production quickly once the waters recede, though today's shortages will continue to constrain supply for an extended period. Hard drive prices should stabilize by next June, according to IDC, and the industry should be back to normal by the second half of 2012. IDC also says that the decline in total shipments for the fourth quarter is expected to be "less than 10%" due to the fact that a large chunk of PC shipments have already taken place for this quarter.

Worst-case scenarios put the total loss for the first quarter of 2012 at around 20% though IDC said that there are opportunities for larger PC vendors to capture enterprise accounts from smaller competitors and accelerate industry consolidation, more specifically in faster growth markets.

According to Program Vice President for IDC's Worldwide Consumer Device Trackers Loren Loverade, "The HDD shortage will affect smaller PC vendors and lower-priced products most, including mini-notebooks, emerging markets and entry-level consumer PCs. However, even the largest vendors are expected to face HDD shortages, particularly for portable PCs where the market is more consolidated. Nevertheless, the shortage will relieve some pressure on pricing and margins and present some opportunities for strategic share gains among the larger players."

Source: Computer Network World - PC makers should 'brace' for drive shortages

Will March 2012 Give Us the iPad 3?

I wrote recently abut the iPad getting a possible discounted release and a new name (iPad Mini?) in the early part of 2012. While that was sure to spark the interests of iPad and tablet users a little bit, a new report should make that excitement grow exponentially.

According to a report from Macotakara, which cited "a reliable Asian source", the next generation iPad is being rushed into production thanks to Chinese New Year celebrations lasting from January 22nd through the 28th. Factories in China are all gearing up to produce the iPad 3 by the end of January 2012.

Assuming that the source is reliable (An unreliable source on the internet test speed? I don't believe it...), the new iPad is said to include a redesigned dock connector that features the same number of pins but in a smaller shape than the one the current iPad uses. If this is true, the new connector could pose a serious problem with existing products that plug into the dock.

In addition to the new connector, the tablet's screen will also remain the same size, even though the source didn't mention if Apple would increase it to Retina Display levels or continue on with the current resolution.

This report isn't the first, however, it joins a small number of previous iPad 3 rumors that have already surfaced. Different sites and sources have been in constant debate as to whether or not the new iPad would offer a 2,048 x 1,536 display. A move like that would give the tablet the same resolution as the current iPhone 4 and 4S as well as the iPod Touch 4G.

As far as a launch windows goes, you are probably looking at a March 2012 release date, especially considering the fact that Apple unveiled the original iPad in April of 2010 and the iPad 2 in March of 2011. Nevertheless, the Linley Group, a chip consulting firm, believes that Apple will outfit the iPad 3 with an A6 processor. This could also potentially push the launch back until June 2012 or later.

Source: CNET - iPad 3 could launch in March, with connector issues, report says

Samsung Introduces New Galaxy Tab 7.0 Plus

Samsung has just confirmed that another variation of its Samsung Galaxy Tab will be hitting stores soon. This new device, known as the Samsung Galaxy Tab 7.0 Plus, will begin selling on November 13, 2011 at many U.S. retailers for a surprisingly reasonable $399.99 according to a statement released by Samsung.

The 16GB tablet, complete with 7" screen, is focused more on home entertainment than business usage, coming complete with a Peel Smart Remote TV app that allows you to tap on the screen in order to quickly find and watch television shows on any manufacturer's TV or home entertainment system.

In addition to that, built-in infrared in the tablet allows you to control a home theater or television setup. The best part is that you don't need any extra cables or hardware, just what you already have in your living room and the tablet, in order to control the TV functions. The Peel remote app allows you to have full control over your TV or entertainment system regardless if it is Samsung brand or not.

Aside from controlling your DVD player, Blu-Ray player, set-top box or TV, the Galaxy Tab 7.0 Plus will also connect to Facebook and Twitter allowing you to share information about what is being watched. According to Chief Experience Officer for Peel Greg Lindley, "Peel's vision is eliminating the barriers between you and your favorite shows."

The Samsung Galaxy Tab 7.0 Plus runs on a 1.2GHz dual-core processor as well as Android 3.2 Honeycomb for an operating system. The device is also only .39" thick and only weighs 12.1 ounces.

Samsung has a plethora of tablets that come with either WiFi only or WiFi and 3G/4G connectivity. According to the website, the Galaxy Tab 7.0 Plus features both cellular and WiFi capabilities though Samsung has yet to announce which U.S. wireless carriers will support the tablet.

The original Galaxy Tab ran on Android 2.2 and upgraded to 2.3 back in May. It too had a 7" touch screen but was slightly larger and heavier and only came with a 1GHz processor. Sales of the Samsung Galaxy Tab Plus will begin on November 13 nationwide at Best Buy, Amazon, tiger Direct, Fry's and other outlets with pre-orders becoming available on October 23.

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Source: Computer World - Galaxy Tab 7.0 Plus to ship Nov. 13 for $400

Toshiba Introduces Tiny Enterprise Hard Drives

Toshiba's Storage Products Business Unit has just announced a high-capacity 2.5" high-performance enterprise-class drive. Known as the Toshiba MK01GRRB/R series, this drive supports the exacting requirements for compute-intensive environments witha 15,000 RPM spin speed, a 6Gb/s SAS interface and a maximum capacity of 300GB1. In addition to that, this drive also offers drive-based encryption in order to help companies manage data security.

According to Vice President of Marketing at Toshiba's Storage Products Business Unit Joel Hagberg, "Enterprise customers are increasingly satisfying their performance and capacity needs with power efficient small form factor drives. Enterprise drives with the latest self-encryption features are helping data centers to more cost-effectively achieve compliance with information security mandates. Toshiba small form factor enterprise drives deliver the performance, capacity and security features IT administrators require for today's mission critical server storage and cloud appliance markets."

The third-generation 2.5-inch 15,000 RPM enterprise drives leverage an enhanced power condition state that reduces the spin of your hard drive in idle states. In addition to that, it also significantly lowers power consumption which also means lower heat dissipation, increasing system stability and less energy usage. As a part of Toshiba's commitment to improved security, this drive also features self-encryption technology that is designed for the Trusted Computing Group "Enterprise SSC" specification.

According to John Rydning, IDC's Research Vice President for Hard Disk Drives, "Increasing the capacity of the 2.5-inch enterprise class HDDs is expanding the market opportunity for this form factor given its inherent power and data density advantages as compared to 3.5-inch models. Toshiba's new MK01GRRB/R series drives give server and storage system customers the capacity they want with the performance they need, as well as the ability to secure data on the drive with Toshiba's SED technology option." Shipments of the Toshiba MK01GRRB/R Series are scheduled to begin in volume in Q1 2012.

Source: Engadget - Toshiba introduces tine enterprise hard disk drive with big speed and big cloud storage

London 2012: Powered By Acer

We have known for some time that the London 2012 Olympics will be in part powered by Acer. What we are just now finding out is the details on how they are going to supply the athletes, in house functions and guard stations. It looks like Acer will be providing some 11,000 computers to be used next summer, as well as providing the scanners that the security gates are using. This should provide a big boost to the Acer name and the company as a whole.

A more recent report is showing that Acer will be providing around 10,000 desktop PC’s, another 1,000 laptops, and a little under a thousand servers. Acer will be sticking with their Veriton L670Gs, which is not exactly a powerhouse computer by any means. At the highest tier these PC’s only come with Windows Vista (which will be loaded for the games), Intel’s Core 2 Quad, 4 GB of DDR2, and a serial ATA. The laptops, on the other hand, are their TravelMate 6593Gs running Windows 7 but still stuck with the dual core chips. Sure Usain Bolt can run 100 meters in 9.58, but the technology he is using is from 2007.

It is also worth mentioning that Acer will be sporting anywhere from 300 to 400 employees on staff to help with all technical issues. Among those staff members only a small margin of them (3% or less) will be from outside of Britain, but most are extremely well trained, with a majority even working on the Vancouver 2010 games.

Good luck, fellow techies working the games, good luck.

Sources:

Itpro.co.uk - Going for Gold - IT at the London Olympics

Theregister.co.uk - London 2012 Olympics: 17000 athletes, 11000 computers

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Acer – Veriton L670 Series Quick Guide – PDF

Napster to be Acquired by Rhapsody

One of the oldest internet subscription music services on the web, Rhapsody, has finally, and officially, acquired Napster subscribers as well as a host of other assets from Best Buy. However, Best Buy will retain a minority stake in Rhapsody according to a joint statement from both companies.

The acquisition is expected to close on November 30 according to the companies. Best Buy is unloading a music service that really struggled before being acquired by Rhapsody and seemingly disappeared afterwards. Financial terms of the deal have not officially been released though it does not appear that Best Buy's investment in Napster has paid off.

The electronics retailer acquired a revamped version of Napster back in 2008 which allowed the company to officially enter into the online music sector. Napster started off as the pioneer file-sharing service back in the day. The service allowed users to share songs with each other via the internet. However, lawsuits filed by multiple recording companies nearly destroyed the company, eventually leading to the selling of the trademark and brand.

Three years ago Best Buy launched an all-cash tender offer for outstanding Napster shares priced at $2.65 per share; the full acquisition was valued at $121 million. That number represented a $54 million net of approximately $67 million in cash and short-term investments. Napster recognized that it had 700,000 members when Best Buy acquired the service though it is unclear as to how many the company has now.

Despite Napster's failure, Rhapsody appears to be years ahead of its time. Over the past ten years Rhapsody worked on getting consumers interested in subscription music services. Now the entire music industry is attempting to make that business model work.

Rhapsody was owned, in part, by RealNetworks and Viacom, though those companies spun off the service back in April 2010. Since then, managers for Rhapsody have been trying to prevent upstart "all-you-can-eat" services from taking all the credit. Spotify, MOG and some other digital music services are just some of the many services that charge a monthly fee for premium services, just like Rhapsody.

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Source: CNET - Rhapsody to acquire Napster (scoop)