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Seagate Expects Data to Support Demand for Storage Products

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

Focus on mass storage solutions

Seagate (STX) continues to see demand from the cloud-based enterprise market. A lot of infrastructure spending among large-scale cloud service providers and hyperscale companies has driven enterprise demand. The massive growth in data has led to the demand for reliable mass storage solutions. Seagate is one of the major storage players globally and has introduced several new products over the last two decades that cater to the dynamic storage environment.

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Data creation is expected to grow at a significant pace over the next few years and provide an opportunity for PureStorage (PSTG), Western Digital (WDC), NetApp (NTAP), and Dell Technologies (DVMT). The value of data is also rising, driven by the advancement of fast-growing technologies such as cloud computing, AI (artificial intelligence), IoT (Internet of Things), and mobility.

Workloads expected to move to mobile

During Seagate’s fiscal 2Q18 earnings call, chief financial officer David Morton stated, “In addition to positioning ourselves for growth in the silicon business, we continue to minimize our alignment with the 500 GB client consumer and mission-critical 15K hard drive markets as we believe these workloads will over time move to mobile, silicon cloud storage.” These products accounted for less than 8% of Seagate’s total revenue in fiscal 2Q18.

In the last five years, Seagate has led the storage market with aerial density solutions such as SMR (Shingled Magnetic Recording) and TDMR (Two-Dimensional Magnetic Recording). Seagate also introduced HAMR (Heat-Assisted Magnetic Recording) technology and expects the product to launch in 2019.

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