Why Toshiba is buying Fujitsu's HDD business

18.02.2009

Maccabe said the Fujitsu acquisition would open an instant door into the enterprise-class SSD market because of the depth of Fujitsu's existing enterprise-class business customers. Wong agreed.

"I think for Toshiba, they need to make sure their solid-state disk unit and hard-disk drive unit work together. Currently, Toshiba's SSDs are basically being manufactured and sold by their NAND flash business unit. So, internally, I wouldn't be surprised if there isn't some friction there," Wong said. "Samsung has the same problem."

Maccabe, however, said Toshiba's HDD unit will focus on enterprise SSD sales because they have more experience in that sales space. Toshiba aims to build on the consolidation between the two companies to raise its share in the overall HDD market to over 20% by 2015, it said.

Even with the many synergies between the two companies, Maccabe said he didn't expect layoffs to result from the buyout. Fujitsu and Toshiba both sell into the mobile market place, but Maccabe said overlap was minimal.

Toshiba has a 1.8-inch hard drive line and Fujitsu does not. Fujitsu has an enterprise-class HDD product line; Toshiba doesn't. And, while both companies have 2.5-inch HDD lines, Maccabe said Fujitsu would "leverage any overlap into efficiency and scale and then have a broader set of products," Maccabe said. "We're committed to bringing everybody over," he said.