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Why Are Data Center Solutions Important for Western Digital?

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Dec. 4 2020, Updated 10:53 a.m. ET

Stored data expected to rise YoY

Western Digital (WDC) expects its stored data to rise from 1.4 zettabytes (or ZB) in 2016 to over 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 stated that the total available market (or TAM) for data center solutions was expected to rise from $4 billion in 2016 to $23 billion in 2020.

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YoY growth in data center devices and solutions for WDC

In fiscal 1Q17, Western Digital’s Data Center Devices and Solutions segment delivered YoY (year-over-year) growth in terms of total exabytes shipped, primarily driven by increased cloud demand for WDC’s near-line capacity HDDs (hard disk drive). WDC’s HDD product category drove over 50% of its YoY growth in total exabytes shipped.

WDC’s chief operating officer, Mike Cordano, said, “I am very pleased to report that our industry leading 10 terabyte helium drives gained further adoption at several of our major OEM and cloud customers reflecting the compelling value proposition of this offering.”

Cumulative shipments for WDC’s storage platform, HelioSeal, which launched in 2013, also exceeded 10 million units (or 76 exabytes) of storage capacity. Another major win for WDC was Softbank Group’s adoption of InfiniFlash, WDC’s all-flash storage platform, which was primarily designed for software-defined storage solutions.

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