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Why Western Digital Is Optimistic about Data Center Revenue Growth

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Data Center revenues rose 14% in fiscal 4Q17

Western Digital’s (WDC) Data Center Devices & Solutions business segment reported revenues of $1.41 billion in fiscal 4Q17, which was a 14% YoY (year-over-year) rise from $1.24 billion in fiscal 4Q16. Data Center is WDC’s second-largest business segment and accounted for 29.3% of total revenues, down from 35.6% in fiscal 4Q16.

WDC’s Data Center Devices & Solutions business provides several data center software solutions as well as high capacity HDD (hard disk drive) and SSD (solid-state drive) products to enterprises.

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Exabytes shipped rose 36% in fiscal 4Q17

Western Digital’s Data Center Devices and Solutions segment shipped 33.5 exabytes (one exabyte equals 1 billion gigabytes) in fiscal 4Q17—a 36% YoY (year-over-year) rise over the 24.6 exabytes it shipped in fiscal 4Q16.

WDC’s shipment of 10 TB (terabyte) helium drives rose significantly quarter-over-quarter in fiscal 4Q17, as its products gained traction in hyperscale data centers. WDC COO (chief operating officer) Mike Cordano stated: “The storage and efficiency requirements of data center customers are driving a sustained shift to the 10 TB capacity point, and we believe we further increased our market presence in this category.”

WDC has shipped over 18 million helium drives since this platform was launched in 2013. In the quarter ended June 2017, WDC also began qualification activities with key OEM (original equipment manufacturers) and hyperscale customers for its 12 TB helium drives. WDC is optimistic about the success of its 12 TB platform and expects to maintain a lead position in this market over the long term.

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