Home > News > Drive Prices and Flooding in Thailand…The ramifications and solutions for media

Drive Prices and Flooding in Thailand…The ramifications and solutions for media

The flooding in Thailand is real and will impact the media and post production business.  After the Japan tsunami issues with Sony SR stock, now as tape-less acquisition becomes the standard, hard drives are becoming harder to find and more expensive.

Key Code Media is receiving weekly price increases from our drive suppliers.  Many of our other suppliers who have extended inventories are creating a sense of urgency to us to buy now, rather than being in a situation where they run out of inventory.

Straight from Bloomberg BusinessWeek (http://www.businessweek.com/ap/financialnews/D9R9SF5G0.htm)

Oct. 12: Seagate Technology PLC, which makes hard drives, says its factories in Thailand have been operational, but it may have difficulty making hard drives because of constraints in getting parts.

Oct. 17: Computer hard drive maker Western Digital Corp. says flooding damage to its Thailand locations will have a significant impact on its operations and its ability to meet customer demand the rest of the year.

Oct. 18: Apple Inc. CEO Tim Cook says he is “virtually certain there will be an overall industry shortage of disk drives.” Cook warns that Apple’s Mac lines will be most affected.

Nov. 21: Hewlett-Packard Co. says supply constraints should start to ease by the end of the fiscal second quarter, which ends in April. But the company says the situation remains dynamic. “I’ve been on the phone with the heads of all four of our disk drive partners and I’m not even sure they have a complete picture about when they’re going to be back up and running,” CEO Meg Whitman said. She says the company expects to get more than its fair share of drives because of long-term relationships with suppliers, but “this is going to be pretty tough for the industry.”

Hard drive limitations and price increases are real and will be an issue through June 2012.  So what should the post production industry do?

The easy answer, buy hard drives now before they get more expensive.  The harder answer is with tight margin and projects not confirmed, buying drives in anticipation of a shortage is tough and risky approach.  Key Code Media’s recommendation is to evaluate LTO-5.  We represent a couple key archive and asset management technologies allowing for quick archive and retrieval.  LTO-5 stores 1.5TB of data and is priced, per cartridge under $60.  With the stability of a 30 year shelf life, LTO-5 provides reliable archive and now with LTFS, can be used in place of fire wire drives and traditional video tape.  We carry two companies products which start below $8,000 that can get our clients over the drive shortage hump: Cache-A and StorageDNA.

Give us a call to further discuss: 818-303-3900, 415-221-0300, 206-728-4000, 310-401-6700 and 949-757-0303

http://www.keycodemedia.com

http://cache-a.com/products.php

http://www.StorageDNA.com

 

 

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