Hewlett-Packard Company (HPQ) Joins SanDisk Corporation (SNDK) To Take On Micron Technology, Inc. (MU) In SCM

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Hewlett-Packard Company (NYSE:HPQ) has aligned with SanDisk Corporation (NASDAQ:SNDK) to take on the combination of Micron Technology, Inc. (NASDAQ:MU)-Intel Corporation (NASDAQ:INTC). They will fight the combination in the development of Storage-Class Memory (SCM) technology. Intel-Micron is planning to launch 3D XPoint memory later this year or early next year. The SCM technology is said to be 1,000 times quicker than the flash storage and provides a similar amount of endurance compared to the flash storage. SCM is a constant memory, which runs at DRAM or close to DRAM speed. However, it is cost effective allowing in-memory computing.

Significant Cost And Power Synergies

Hewlett-Packard Company (NYSE:HPQ) – SanDisk Corporation (NASDAQ:SNDK) alliance would provide significant cost, as well as, power synergies to companies that adopt its SCM. However, both the companies either confirmed or denied that their SCM will also offer 1,000 times faster than the flash storage and a maximum of 1,000 times more endurance compared to the flash storage. The new tech should offer enhancements over DRAM techs allowing servers to have significant terabytes of SCM for the in-memory databases, transactional, real-time data analytics, and high-performance computing. The alliance objective is to establish enterprise-class products that will be Memory-fueled Computing. They also want to establish better data center SSDs.

The current alliance between Hewlett-Packard Company (NYSE:HPQ) and SanDisk Corporation (NASDAQ:SNDK) is more of a long-term nature. Both the companies believe that their collaboration on new SCM tech solution would revolutionize computing in the upcoming years. According to their agreement, while HP would contribute its Memristor tech, as well as, expertise, SanDisk would offer its non-volatile reRAM memory tech. That apart, it would also offer design, as well as, manufacturing expertise. However, there are doubts expressed by a section whether HP’s Memristor tech is ready to take on Micron Technology, Inc. (NASDAQ:MU) – Intel Corporation (NASDAQ:INTC) XPoint memory.

First Substantial Storage Sector’s Response

For quite some time, there has not been much of a response to Micron Technology, Inc. (NASDAQ:MU) – Intel’s 3D XPoint chips. Therefore, the announcement of Hewlett-Packard Company (NYSE:HPQ) and SanDisk Corporation (NASDAQ:SNDK) on SCM is probably the first industry response to their rivals initiative. It will not be a surprise if SAMSUNG ELECT LTD (F) (ADR) (OTCMKTS:SSNLF) too opts to have a similar kind of a deal. Similarly, SanDisk might also talk to Toshiba for a similar type of deal.

Significantly, the current agreement between HP and the chip maker has not provided any hindsight about software. Reports suggest that both the server OS, as well as, app software would be required to be changed before they take SCM memory advantage. It was similar to that of HANA type of SAP for in-memory computing. The company believes that there is a requirement for HANA-type incarnations of app software.

Management Comments

SanDisk Corporation (NASDAQ:SNDK)’s EVP for memory tech, Siva Sivaram, said that the company was happy with the widening relationship with Hewlett-Packard Company (NYSE:HPQ). He said that his firm would complete enterprise portfolio of SATA, PCIe, and SAS products apart from cutting-edge enterprise system solutions. It might look like an OEM or a resale of type deal. Both the companies failed to reveal when the chip will be launched and the likely timing of its reach in the market.

Hewlett-Packard Company (NYSE:HPQ) CTO and EVP, Martin Fink, said that both companies will aim to bring a fresh memory solution to market. They will also focus on accelerating adoption rate in the enterprise. At the same time, the company will advance it’s the Machine development to allow a fresh computing model in the long-term. He said that its Memristor was a future eye of HP though cynics said that it would always remain a future without seeing the delivery. The latest development also proves one thing. That is the news about HP abandoning its Memristor tech was not correct.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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