Western Digital’s (WDC) Datacenter Devices and Solutions segment consists of high-capacity enterprise HDDs (hard disk drives) and SSDs (solid state drives) as well as datacenter software solutions. Enterprise HDDs support high-volume online transactions and are used in enterprise servers, data analysis, and other applications.
In fiscal 2Q17, the Datacenter Devices and Solutions segment generated revenue of $1.39 billion compared to $1.36 billion in fiscal 2Q16 and $1.27 billion in fiscal 2Q15. Revenue rose 2.0% quarter-over-quarter driven by demand for cloud storage.
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Western Digital expects stored data to rise from 1.4 ZB (zettabytes) in 2016 to more than 6.2 ZB in 2020. While the amount of data stored in flash products will likely rise four times in the next four years, cloud data center capacity is expected to rise five times during the same period.
During its investor day presentation, Western Digital said that the total available market for its Datacenter Devices and Solutions segment was expected to rise from $4.0 billion in 2016 to $23.0 billion in 2020.
WDC is one of the first players to launch cost-effective helium drives in the datacenter space. During the company’s earnings call, CEO (chief executive officer) Steve Milligan said, “In the data center category, demand for high capacity storage devices remain very strong. Year-over-year Petabyte growth for capacity optimized hard drive met our upwardly revised expectation which we had estimated at 40% growth. We are pleased with the mainstream adoption of our 10 Terabyte third generation Helium drive.”