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Hard drives out of stock

10-27-2011, 04:52 PM

As you know, there has been a lot of flooding in Thailand and several hard drive production plants in the West have stopped. Seagate and Hitachi are continuing production but they can not deliver to meet the Global demand. Being a large customer in September and October we have access priority to global stocks. However it gets quite difficult. For November, we got 20% of our orders and we have learned that the factories in Thailand will not go back to normal until January 2012! In December and January they will provide 10% of our needs, or nothing at all!

If we want to continue to provide you with the servers in 1 Hour or 36 Hours.

1. We need new drives for new servers. So the new discs are now in place on assembly lines only.
2. The servers that have been put into production and are used for a few months and are not renewed will usually see the hard drive changed to a new one. This allows us to guarantee that a freshly rented server has a new disk of less than 1000 hours. We stop the operations to avoid running out of our disk stock too fast. So if you are delivered a server in October, November, December and January, you will therefore have a probability of a server with a 4-10 month old disk. The data has been erased by formatting a low level, but the disk will have been already a few months operating.

It is not known yet whether this (small) change is sufficient to maintain the stock server availability at 1Hour. Honestly we doubt in January and since OVH uses about 20,000 hard drives a month, it is likely we will be out of stock for few days or even may be some weeks on certain types or completely for our servers. It is not known yet. You therefore advised to order enough new servers in advance and not to take them last minute. If you change the server to new, it is best to postpone this operation until January or February. It is quite likely that given time we have to be block certain order and priority will be given to new customers not yet at OVH. Or us to do the renewal for three months to avoid the turn-over until February. We do not yet know how we will manage these 4 months, it will be rather tricky.

This is a very special situation that we are not comfortable with. Globalisation for some means only the cost reduction with taking maximum risk for the entire the planet instead of the distribution of risk on different production areas and a better adaptation to the application. The plants are calculated on a financial turn 100% of the time at 100% capacity in order to maximize investment income. We see very quickly that the goal is not to sell and take advantage of growth opportunities that given market, but to manage costs and maximize income, even if it does not meet all the request. This world is not going in the right direction and forces us to make decisions that are not in keeping with the spirit in which we want change. But our responsibility also be taken to avoid a wall that and therefore to make available to negotiate a curve well upstream and then gently.