)-owned EVault Inc. has collaborated with
) to provide cloud services to NetApp FlexPod Datacenter and
FlexPod Express customers. EVault has also been enlisted as
NetApp's partner program.
EVault provides cloud-based data protection, backup and
recovery services to enterprises. Leveraging EVault's
technologies, NetApp would provide enhanced storage solutions to
its clients. Moreover, customers deploying EVault Storage Cloud
for NetApp will be able to save costs.
Incidentally, EVault was acquired by Seagate in 2006 for $185
million to gain traction in the managed services segment. The
company currently caters to 43K enterprises with its cloud-based
We believe that cost benefits of cloud computing are pushing
different companies toward massive information technology
restructuring and upgrades. This is one of the reasons that
enterprises have been investing in the area despite the economic
weakness that has led to a slump in overall IT spending.
According to the latest report from Gartner (3Q13 update),
worldwide IT spending is expected to increase by a modest 0.8% to
reach $3.7 trillion in 2013. Moreover, the study forecasts that
global IT spending will increase by 3.6% and reach $4.3 trillion
by 2017. Thus, considering the constricted spending environment,
the EVault-NetApp collaboration providing cost effective
cloud-based solutions is expected to gain enterprise
Moreover, Seagate's constant endeavor to develop new products
to cater to its customers and penetrate newer 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 traction.
Moreover, the company's expansion in the solid state drive
market is expected to boost its client base, going forward.
However, competition from
) and Fusion-io remains a headwind.
Additionally, weaker PC shipments are also expected to
pressurize hard disk drive demand which in turn will affect
Currently, Seagate carries a Zacks Rank #3 (Hold).
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