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Seagate aims to be one-stop storage provider

Nurdianah Md Nur | Feb. 2, 2015
Its acquisitions of LSI, Xyratex, EVault and LaCie will strengthen its offerings.

The emergence of Internet of Things, plus deeper mobile device penetration, will mean data is set to grow exponentially in years to come.

According to Seagate, 44zetabytes (ZB) of data is expected to be created by 2020, an amount which storage providers will have trouble meeting storage demands. Around half (56 percent) of that data will be stored on the cloud by then, as compared to 25 percent of the data stored in cloud in 2014.

To meet the upcoming demands, Seagate recently underwent a brand refresh to reposition itself as a support to the growth of data. "We are no longer just a hard drive manufacturer; we want to be the complete storage company offering solutions, software and services to help businesses and consumers realise the full potential of living data," said TehBanSeng, Seagate's senior vice president of global sales in a media briefing.

Seagate's acquisitions of LSI, Xyratex, EVault and LaCie will support the company's new focus, added Teh. He explained that by acquiring flash storage provider LSI, Seagate would be able to access the flash industry and work with all NAND suppliers for innovation and cost benefits. Xyratex's procurement, on the other hand, would allowtesting to be integrated into Seagate's process.

Teh added that Seagate's offerings for cloud storage and operations expertise for backup and recovery have been strengthened by its acquisition of EVault. Meanwhile, Seagate's "premium designs for its hard drives" could be attributed to its purchase of computer hardware company LaCie.

As part of its efforts to be a one-stop storage solutions and services provider, Seagate will be offering professional services too. The service will advise customers on which Seagate solutions will best suit their needs and how to fully utilise them. "We want to go into an advisory type of play and provide customers the ability to combine silicon, component, system and software innovation in new ways," commented Teh.

Q2 2015 financial results
Seagate recently announced that its revenue for the second quarter of fiscal year 2015 (Q2 2015), which ended on 2 January 2015, stood at approximately US$3.78 billion.

Its net income was reported to be US$933 million, or US$2.78 per share. Non-GAAP earnings for the quarter were USS$1.35 a share.

Steve Luczo, Seagate's chairman and CEO, attributed the positive financial results to the company's "consistent execution and solid competitive positioning in the storage technology marketplace."

Tech investment roadmap
Despite its positive Q2 2015 financial results, Seagate intends to further grow its business by ensuring that its future products will focus onthe following:-

  • Lowest cost/GB storage;
  • Increasing total performance;
  • Flash controllers;
  • Low system power and cooling cost;
  • Low system volume and density;
  • Lowest total system lifecycle cost in terms of deployment, operation and disposal; and
  • Self-healing components and systems, where hardware can still remain partially functional even if some parts of it are unusable.


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