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Why Western Digital and Seagate Benefit from a Broader Portfolio

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WDC- a market leader

In terms of revenue, Western Digital (WDC) leads its peer storage companies with $17.7 billion, followed by EMC’s $15.9 billion. Toshiba, Seagate (STX), and Korea’s (EWY) Samsung (SSNLF) have revenues of $11.1 billion, $11 billion, and $11.7 billion, respectively.

Western Digital has a broad portfolio of storage solutions, especially given its acquisitions of HGST and SanDisk. In fiscal 2012, WDC’s Client Devices business accounted for 77% of its total revenue, followed by its Client Solutions at 14% and its Data Center Devices and Solutions at 9%. In fiscal 2016, the Data Center Devices and Solutions segment accounted for 32% of WDC’s revenue, while its Client Solutions segment stood at 46%.

Seagate is optimistic about the cloud

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Seagate (STX) stated that it has a portfolio of solutions that will promote customers’ transition from client servers to mobile cloud applications. In the cloud segment, Seagate stated that it’s ramping up new platforms and acquiring new customers. In fiscal 2017, Seagate will be launching converged storage platforms, including hybrid and all-flash array offerings. The firm is optimistic that these solutions will drive revenue growth in fiscal 2Q17 and beyond.

Over the last few quarters, Seagate has also introduced several products such as the two-terabyte NVMe Enterprise SSD (solid-state drive). As this segment is fiercely competitive, Seagate is currently working with its key NAND (negative NAND) partners to develop workload-specific products.

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