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"The user mood is changing from - can I afford to use SSDs?
to a realization that - I can't afford not to use SSDs."
......from the article:-what will set the tone of the SSD market in 2012?
...

Clarifying SSD Pricing - where does all the money go?

by Zsolt Kerekes, editor

Want to buy some terabytes (or petabytes) of SSD storage?

One confusing factor for buyers and specifiers is that market prices for SSDs can vary more than 100x to 1 for the same capacity! With hundreds of oems active in the SSD market and thousands of product news announcements - how can you decide which SSD prices relate to your own needs? And which don't? This article will bring a sense of clarity and order into what can seem like a crazy market.

the irritating thing about $$D pricing!

SSDs are among the most expensive items of computer hardware many of you will ever buy - with high end models costing more than high end servers. There's nothing more annoying than spending a large sum of money on something only to find that someone else you know has just bought the same thing at a fraction of the price you paid.

Buyers in the SSD market - who are already confused and irritated enough by the technology aspects in the SSD shortlisting process - are liable to be stunned by a new level of random numbers when they look into the issue of pricing.

Why is a terabyte SSD from one company 2x, 5x, 10x or even more than 100x more expensive than another? (And the companies selling those outrageously costly SSDs keep reporting great business results - so someone must be buying them - even though other products are much cheaper.) The simple explanation is - that all SSDs are not the same. And SSDs can do more than storage. That's why just looking at "capacity" like you would for a hard drive - does not give you a true picture of what the product can do - or what it might cost.

a transport analogy for SSD price vs capacity

Outside the SSD market we're already comfortable with holding seemingly contradictory cost information in our heads - without getting a headache. Because we know the invisible factors which lie behind apparently identical purchase decisions.

Let's suppose you need to travel 400 miles for a meeting. Your options are:-

  • walk
  • bike
  • car
  • train
  • canoe, yacht, raft, speedboat, or river ferry (start and end destinations have ports on the same river)
  • airline (1st class, business class, regular human)
  • helicopter
  • Airforce One

For the sake of this illustration - the critical distance you're going to travel is identical. It's 400 miles. But the cost will vary considerably depending which way you go. And although you may look at more than one alternative for how to get there - depending what the meeting is about and your personal resources and preferences - it's unlikely you will get confused. When it comes to the SSD market - "distance" is like "capacity".

In the travel world - our decision making is simplified by the fact we filter out a lot of irrelevant choices - which we know from our own experience are not valid choices.

None of you reading this - are the President of the USA - so you can instantly filter out the Airforce One option. It probably never crossed your mind before reading this article.

When you've learned more about the part of the SSD market -which relates to your needs - you'll easily be able to filter out confusing price messages. Higher? Or lower? Who cares? If they're irrelevant you can safely ignore them.

SSD ad - click for more info

Factors which influence SSD Prices

The main factors which influence SSD pricing are listed in the table below. I've placed them in order of importance - with the most significant at the top of the list.

Factors which most influence SSD Prices © 2010 StorageSearch.com
Speed "Speed" is a catch-all term which includes latency, random IOPS and throughput.

Nearly all these factors can be artificially boosted to look good in benchmarks - and the numbers don't always translate to application performance due to halo effects. Despite the smoke and mirrors, however, experienced users (and this editor) know the fastest SSDs when they see them.

In the right circumstances server users will buy the fastest SSDs to achieve application acceleration which is not technically possible without SSDs, or which costs far more - using additional servers and hard disks.

For the same SSD storage capacity - street prices for the fastest SSDs can be more than 200x more than for entry level SSD products.

Before 2007 - the "Year of SSD Revolutions" the predominant part of an SSD's cost was the memory type and memory capacity. After that the SSD controller too became a significant part of the product price mix. That was the year it became clear that even within the constraints of using the same interface, and memory type some designers in the highly competitive 2.5" and 3.5" SSD markets could use clever architecture and knowledge of device characteristics to leverage significantly more performance out of those memory chips. The result was to make their products more attractive to users - and gave them the ability to charge a higher price.

Those factors - related to SSD IP - had always been true in the rackmount SSD market too - but it was in 2007 that it became easier to make like for like comparisons.
Memory Here's a simple rule of thumb based on analyzing published price data - for identical storage capacity - across a wide range of commercially available SSDs.
  • RAM SSDs cost 9x more than SLC flash SSDs
  • SLC flash SSDs cost 2x to 6x more than classic MLC flash SSDs (2 bits per cell MLC)
Here are some additional price complicating factors...
  • within fast flash SSDs - the amount of over-provisioning could mean you've actually got twice as much memory inside the SSD (or half as much) as you thought.
  • new types of nv memory such as PRAM, MRAM and RRAM etc could appear in some SSDs in the 2010 to 2012 timeframe - fitting between some of the price boundaries listed above.
Historically the market ratios between these various SSD memory types has fluctuated a lot due to demand vs supply, timing of new geometry shrinks, etc. You can get an idea of the crazy degree of change and direction by seeing the graph in this classic RAM vs flash SSD pricing article.
Reliability Some SSDs have average operational lives which can be 2x, 5x, 10x or even 100x longer than entry level consumer grade SSDs - when they are used in demanding applications.

Reliability options within the SSD market - include internal hardened data integrity, enhanced fault tolerance or enhanced endurance.
Interface / Form factor Some interfaces and form factors are supported by more vendors than others.

That means prices may be lower for SSDs having otherwise similar speed and memory types.

For a complete list of SSD directories organized by interface type and form factor see the SSD Buyers Guide.
Security & ruggedness There are some other features which can be important in some SSD applications - but which are not present in all SSDs. Where they are needed - they can impact system cost (for any given capacity) by anything from 30% to over 300% compared to other devices with a similar speed.
Ease of installation For server apps - in particular - buying the SSD is just part of the process.

Getting it to work effectively is another hurdle to cross. I've examined these issues in a separate article - SSD ASAPs (Auto-tuning SSD Accelerated Pools of storage). This discusses the situations in which it's worth paying more for an SSD ASAP - and those others where it's not - and where human tuning is more likely to give better performance results at a lower price.
Conclusion

SSD pricing looks complicated - because it is complicated!

It would be misleading to claim otherwise. There is no such thing as a "single SSD market". Just as in the transportation analogy used in this article - there is no such thing as a single way of getting from point "A" to "B". But you can takes steps to simplify your own SSD price search. A helpful tactic is to decide which pricing messages to filter in or out - depending on which features within the SSD cost model are relevant to your own needs.
.
...Later:- SNIA has set up a resource page to help users assess the cost of ownership factors for flash SSDs.

It includes a spreadsheet which was developed by Intel and a supporting whitepaper - SSD TCO - An In-Depth Analysis of Many Important Factors (pdf) - written by Esther Spanjer and Dan Le at SMART Modular Technologies.
.
...Later:- for professional buyers and marketers there are lots of market analysts who provide guidance on the market price of SSDs.

In the consumer market a particular specialist in real-time price tracking appears to be PriceG2.
...
You'll find hundreds more articles about SSD using the site search box below.
...
Clarifying SSD Prices - article on StorageSearch.com . Clarifying SSD Prices

Calories count is an inconvenient issue
for storage searchers hungry to sample
the market's delicacies.
.
Virident FlashMAX.  - click for more info Predictable, industry-leading performance.
Scales across diverse workloads, data sets,
and sustains over time.
Learn more about - Virident FlashMAX
.
See how much flash SSD prices have changed!

2001 - a rugged 14GB 3.5" SLC SSD from Adtron cost $42,000.

2003 - a 21GB 2.5" PATA SLC SSD from M-Systems cost "less than $11,000".

2005 - a 10GB 3.5" SCSI SLC SSD from BiTMICRO - oem price was $2,999.

2006 (Jan) - a 24GB PATA SLC SSD from Adtron (commercial temp) cost $5,710.

2006 (Dec) - Advanced Media launched a 32GB 2.5" SATA MLC SSD for $1,000.

2008 - a fast 32GB 2.5" SATA SLC SSD from Mtron cost about $399.

2010 - OCZ said it was shipping a 32GB 2.5" MLC SSD for under $100.

2011 (March) - Intel said its SSD 320 40GB MLC cost $89 in 1,000 unit quantities.

September 2011 - the price per terabyte in tier 1 storage arrays is nearly the same for eMLC SSDs and hard drives - according to an article by Jamon Bowen at Texas Memory Systems.

October 2011 - Tier 1 FC SAN SSD list prices are about $20K / $30K per usable terabyte for MLC / SLC respectively (sources Huawei Symantec and Violin Memory).

November 2011 - Coraid said its EtherFlash solution (NAS SSD) costs under $10K / TB.
.
2.5" SATA 3 SSDs from RunCore fast 2.5" SATA 3 SSDs
& consumer installable notebook SSDs
from RunCore
.
See how much RAM SSD prices have changed!

2003 - a 1TB FC RAM SSD from TMS (2 million IOPS) cost $1.6 million.

2003 - a 4GB PCI SSD - from Cenatek - (35,000 IOPS) cost $3,599.

2008 - a 128GB SAS RAM SSD from Solid Access (70,000 IOPS) cost $75,000.

2009 - a 4GB PCIe RAM SSD from DDRdrive cost $1,495.

2011 - a 500GB FC RAM SSD from Kaminario (150,000 IOPS) cost $50,000.
.
..."Not every manufacturer takes product quality seriously.
When an SSD manufacturer tries to downgrade Nand Flash to
lower the price and impress consumers, they also pass on the risk
of data loss to consumers."
...Email from Renice Technology (September 2011) warning about
buying SSDs from oems which don't test and qualify the quality
and compatibility of their raw flash suppliers.
.
Looking for competitive alternative manufacturers?

The directories below list ALL oems who make SSDs in that category.
form factor 1.0" SSDs 1.8" SSDs 2.5" SSDs 3.5" SSDs rackmount
interface FC SSDs PATA SSDs PCIe SSDs SAS SSDs SATA SSDs
memory all SSDs flash SSDs hybrid drives notebook SSDs RAM SSDs
.
What's the best / cheapest - PC SSD?
Editor:- I often get emails from readers which ask the above question.

An article on StorageSearch.com - called What's the best / cheapest PC SSD? - is my attempt to create a simple FAQs page - which answers the question...
click to read this article ...of why I can't answer your question - and follows on to pose some probing questions which you can ask yourself. ...read the article
.
"Suddenly spinning rust doesn't look so cheap after all, does it?"

...Dave Wright, Founder & CEO SolidFire in his May 2011 blog - Just How Expensive is Flash?
.
articles which look at the macro costs of storage

The Real Cost of Storage - this wide ranging article by Joerg Hallbauer (published, April 2009, in GestaltIT ) looks at the lifetime cost of storage in the enterprise.

Settling the SSD 'High-Cost' Debate - by Amyl Ahola (published June 2009) compares SSD and HDD array solutions. The principles aren't new - but the article brings these comparisons up to date.

The Cost of Owning and Storing Data - by Gene Nagle (published April 1999 in StorageSearch.com) was one of the earliest articles which examined this important subject in a consistent way.

Looking into the far distant future - Reaching for the petabyte SSD - by Zsolt Kerekes (published March 2010 in StorageSearch.com) proposes that the way we think about storage will change - from being a cost overhead (today) to being a profit center. More (storage) will be better - if enterprises can leverage their data (and automatically grow new data) with upcoming SSD and search-engine enabled software technologies.
.
What's the best way to design a flash SSD?
and other questions which divide SSD opinion

More than 10 key areas of fundamental disagreement within the SSD industry are discussed in an article here on StorageSearch.com called the the SSD Heresies.
click to read the article - the SSD Heresies ... Why can't SSD's true believers agree upon a single coherent vision for the future of solid state storage? ...read the article
.
the fastest SSDs
Speed isn't everything, and it comes at a price.

But if you do need the speediest SSD then wading through the web sites of over 180 current SSD oems to shortlist products slows you down.

And the SSD search problem will get even worse as we head towards a market with over 1,000 SSD oems.
the fastest SSDs  sorted by interface and form factor - click to read article ... Relax - I've done the research. And this whizzy wish list is updated daily from storage news and direct contacts from oems. ...read the article,
.
Who buys enterprise accelerator SSDs? - and why?
Editor:- January 12, 2011 - In a new blog - Application Owners versus Data Center Operators - written by Woody Hutsell, Application Acceleration Practice Director at ViON - the author talks about what he learned in more than 10 years marketing very fast SSDs.
Storage People -   news, history, bios & blogs Woody Hutsell also suggests that some SSD vendors might benefit from changing their marketing tactics to segment the different interests in the user community. ...read the article
.
StorageSearch.com article image - punch and judy -
SSDs - the big market picture
How do you simply explain to
your friends, colleagues and VCs
what's so awesome about SSDs?
.
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