Adoption of cloud-based storage
Enterprises are now increasingly adopting cloud-based storage, and tech firms (QQQ) such as Seagate Technology (STX), Western Digital (WDC), and NetApp (NTAP) are looking to provide the required infrastructure and solutions to ensure successful transitions to the cloud.
In calendar 2017, Seagate expects to see revenue growth in 80% of its storage product revenues, including in its Cloud Systems and Silicon Group.
Seagate has also pointed out that it has a portfolio of solutions that should promote customers’ transition from client servers to mobile cloud applications. In its 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.
A recent research report from MarketsandMarkets, in fact, estimates that the cloud storage market could grow at a CAGR (compound annual growth rate) of 25.8%, from $23.76 billion in 2016 to $74.94 billion in 2021.
According to Seagate Technology, demand for nearline storage has grown at a CAGR of 43%—from 10.2 exabytes to 25.7 exabytes—between fiscal 2011 and 2016.
In fiscal 2Q17, Seagate’s nearline product revenue rose 15% on a year-over-year basis, while its ATB nearline products continued to see revenue growth and represented the firm’s leading revenue SKU (stock keeping unit).
For ongoing updates on this industry, check out Market Realist’s Tech, Media, and Telecom page.