Even Google Can't Save the Flash Market

"These customers have been converting from hard disk drives to solid-state drives relatively quickly. So search engines are the next step," he says.

But Handy notes that solid-state drives are not being used to store the bulk of the server data, but rather, for caching frequently accessed information that requires near-instant response times.

That means flash drives designed for servers don't necessarily need huge capacities. And that means that the opening of a new server market won't be enough to soak up all the excess flash memory currently plaguing the industry.

The spread of flash drives in servers will be quick, says Handy, "but it's not going to be big enough that the guys who make the chips will feel any easing of the current crisis."

Of course, any extra demand is a welcome development for flash makers, particularly for Intel, whose overall financial results have been dragged down by the money-losing flash memory group for the last two consecutive quarters.

And doing business with Google could give Intel a more profitable outlet for its flash chips, since components for servers typically boast higher profit margins than for consumer devices.

Google may not save the flash industry, but it could provide a nice safety net for Intel.