Intel not yet confident that SSD's time has come

The word on the street is that thanks to the Thai floods killing off hard-drive supply,  SSD sales are going to rocket.

Certainly prices have dropped and demand is high, but according to ZDNet, one of the biggest nay-sayers to the rise of SSDs is Intel.

Intel CFO Stacy Smith said that SSDs aren’t taking off yet. Intel cut its sales outlook for the technology. Smith said that there had not been a big uptake in demand for SSDs at the moment.

Chipzilla, which would be one of the most likely hardware makers to gain if SSD’s time really had come, does not think it will happen yet.

This may be due to the fact that computer manufacturers still have a high number of conventional drives stocked in their warehouses. With all this gear stored, they won’t need to compensate with SSDs for a while.

Chipzilla also doesn’t think punters will understand why they still have to pay more money for significantly less space.

Hardware makers might not have any choice eventually. There are rumours that the hard drive shortage is more serious than it was previously thought. New HDDs might not arrive for a long time and companies will be forced to replace magnetic storage with MLC. Prices of HDDs are steadily climbing, so a partial transition might not be as difficult as it seems at first glance.

Intel fully expects SSD sales to spike in the first half of 2012. This will not be because of a shortage of HDDs but more because it believes the Ultrabook will drive demand. We guess it will also convince users of the advantages.

Smith thinks that it will be one of the ways that the industry helps offset some of the HDD shortage. But by the end of 2012, Intel reckons SSDs in Ultrabooks will be most important in the technology industry.