At CEATEC 2013 in Tokyo, storage solutions provider,
), will unveil its latest heat assisted magnetic recording (HAMR)
technology used on hard disk drives (HDDs).
The HAMR technology uses heat to increase the storage density
of disk drives. The surface of the HDD is heated by a laser
before writing the data which enables the storage of more data
bits into a smaller area and subsequent cooling stabilizes the
written data. The technology is targeted at enterprise class
storage, especially blade servers.
Leveraging the HAMR technology, Seagate expects to increase
the storage density of a hard drive to 20 Terabyte (TB) by 2020.
The technology also bodes well for Seagate as businesses generate
a large amount of data that needs to be stored cost-effectively
for future reference. The company expects to cater to these needs
with hard drives at lower cost per gigabyte.
Moreover, the simple equation of more data being stored on a
fewer number of drives will automatically bring down storage
costs as well as the resultant heat and power consumption. The
company expects to start selling HAMR drives in 2016.
Seagate's development of new products to cater to its
customers and penetrate new markets with customized products
should yield positive results in the long term. Seagate also has
significant exposure to high-end corporate desktop and enterprise
server markets, where its new products are likely to gain
Moreover, the company's expansion in the solid state drive
market is expected to boost its client base, going forward.
However, competition from
) remains the headwind.
Moreover, weaker PC shipments are also expected to pressurize
HDD demand which in turn will affect Seagate's results.
Currently, Seagate carries a Zacks Rank #4 (Sell).
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