For its price you can also buy a conventional 1TB drive plus a fast caching SSD, or a 1TB drive with a 120GB SSD as start-up disk. Starting Windows, loading game levels, editing photos, and other standard tasks will go faster with those two options than with the Velociraptor.
But there are scenarios where the Velociraptor would be preferable. For example, when you work with very large files - the PCMark 7 video editing benchmark is a prime example - then the Velociraptor almost equals the performance of an SSD for a quarter of the price. This is its selling point, if you frequently edit videos or need to quickly process terabytes of files for other reasons, then one or more Velociraptors is a good choice. SSDs are still too expensive to fill such a role.
The conclusion is that the Velociraptor remains a niche product. Most consumers will be better off combining a traditional hard drive with a small but fast SSD.
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