Hard disk drive (HDD) manufacturer
Western Digital Corp.
) or WD introduced a new range of network backup appliances,
targeting its small and medium business (SMB) customer base. The
all new WD Arkeia backup appliances are available in four models
namely RA4300, RA4300T, RA5300, and RA6300. WD acquired Arkeia
Software Inc. in Jan 2013 for an undisclosed sum in order to
boost its SMB product portfolio.
The appliances offer greater internal disk space, faster
processing speed, improved memory, and integrated solid state
drives (SSDs), which are aimed at reducing backup time and
accelerating the data recovery process. Apart from this,
customers will have access to WD Arkeia v10.1 software as a
bundled offer, which will allow users to support hybrid cloud
The WD Arkeia appliances will be available immediately at a
starting price of $9,900. The appliances will come with hardware
warranty, technical support accessibility and free software
update for one year.
Western Digital's growing exposure into the SMB space is
encouraging. The company has expanded its SMB product suite over
time to meet the growing demand. Increasing IT spending by the
SMBs is a good sign and the company is well-positioned to
capitalize on the opportunity.
Apart from SMBs, WD is well poised to take a giant's share of the
high margin enterprise drives market. It intends to shift focus
toward high margin enterprise drives to offset slower PC demand.
Last month, the company announced the shipment of WD Blue, a 2.5
inch 7 mm HDD with 1 TB (Tera byte) capacity. WD Blue is for
slimmer and lighter notebooks and can also be used in standard
notebooks with 9.5 mm drive slots. Prior to this, WD also
introduced WD Se (an enterprise class drive for data centers) and
Travelstar 5K1500 (for notebooks, external drives, gaming
consoles and all-in-one PCs).
Western Digital has limited exposure to high-end corporate
desktop and enterprise server markets compared to its rival
Seagate Technology plc
). But we believe that with the introduction of WD Black (SSHD)
in association with SanDisk Corp. and the newly-introduced
drives, Western Digital will be able to grow its market share in
the enterprise space.
Currently, Western Digital has a Zacks Rank #3 (Hold). Investors
should also consider technology stocks such as
), which carry a Zacks Rank #2 (Buy) and are worth buying.
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