The Worldwide Solid State Drive Market is for Real – IDC Predicts Revenue Will Grow at a 70% CAGR Through 2012

FRAMINGHAM, MA – June 24, 2008 – The worldwide solid state drive (SSD) market is for real and generated nearly $400 million in revenues in 2007. SSD revenue will increase at a 70% compound annual growth rate (CAGR) from 2007–2012 and unit shipments at a slightly faster rate of 76%, IDC predicts. Traditional markets, including high-performance enterprise computing and military, industrial, or rugged applications, will continue to provide a solid base of revenue for the SSD market. These applications leverage the advantages inherent with SSDs as compared to other storage technology solutions. However, the real growth engine for SSDs will be derived from new markets that SSDs are just now beginning to penetrate.

Future market trends related to price per gigabyte, performance, power, and reliability requirements align well with the benefits that SSDs provide in certain market segments, such as in the PC, ultra low-cost PC (ULCPC), and enterprise computing segments, and this is where IDC expects adoption to occur. For instance, as NAND flash pricing continues to decline, SSD price points will follow. This increasing affordability will continue to feed device OEM interest in using SSDs in their designs, especially those segments where storage and environmental requirements play to the strengths of SSDs.

"The future for SSDs continues to look bright," said Jeff Janukowicz, research manager for Hard Disk Drive Components and Solid State Disk Drives. "Adoption will be measured and deliberate, focusing first on market segments that can tolerate the premium associated with SSDs (e.g., enterprise storage, high-end PCs, and power users). Nevertheless, IDC sees nothing but increasing opportunities for SSDs as technology advances and requirements converge."

IDC's study, Worldwide Solid State Drive 2007-2012 Forecast and Analysis: Entering the No-Spin Zone (Doc #212736), examines the market and opportunities for SSDs in terms of units, exit factory revenue, and terabytes shipped through 2012. Various metrics, significant trends, and industry dynamics are also analyzed in an attempt to give the reader a solid understanding of the current situation and future outlook for the worldwide SSD market.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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