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Western Digital acquires STEC for Enterprise SSD

Western Digital recently announced that they have purchased STEC via HGST (Hitachi Global Storage Technologies) for $340 Million in Cache. STEC’s expertise is in the enterprise SSD market. The purchase was made via HGST most likely because they have ULTRASTAR, their Enterprise SSD lineup.

By doing so, Western Digital gets their hands on engineers, over 100 patents and 900 employees which will greatly boost Western Digital’s venture in the enterprise SSD market. Until now, HGST was working with Intel to make SSD controllers, but this acquisition most likely will enable them to do the same task independently.

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It is not clear if Western Digital would ever plan on going ahead with consumer class SSD. Not too long ago, Seagate released their SSD lineups as well so it will be interesting to see how the SSD wars shape up in the coming months and maybe possible after a year. The acquisition will be completed by Q3 or Q4 2013.

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