By: Mark Gomes, CEO
Very bullish earnings call. — Poised To Triple
For the first nine months of fiscal year, Seagate has shipped over 130 exabytes of storage, reflecting 33% year-over-year growth, which is well above the current areal density growth rate.
For calendar 2013, the growth trajectory of data-driven in part by cloud of mobile applications has our industry on pace to close to 500 exabytes of storage and is advancing at a rate which is more than two times greater than expected areal density growth rate.
In the June 2011 quarter…Seagate produced 150 million heads with an average capacity of 180 gigabytes per head against the total industry TAM of 180 million HDD units. In the March 2013 quarter against the total industry TAM of 135 million HDD units, Seagate also produced 150 heads. However, these heads had an average capacity of 280 gigabytes per head.
(With) TAM expansion in the back half of the year, from a capacity perspective, the industry is kind of bumping up against its limit…the industry is relatively constrained, say roughly 500 exabytes of capacity
There’s been kind of a bit of an uptick in the cloud build outs and build out have been consistently growing for a while, but it is certainly our sense from engaging with either our OEM customers or directly to the companies that are doing the cloud build outs directly that we maybe within 12 months of some your step function changes that build out has guys for the company starts go global and their footprint, starts recognizing some of the issues around bandwidth as well as some of the issues around in-country storage requirement. So, the kind of the scalable of that infrastructure I think is potentially going to be bigger than what maybe people thought just six months ago.
The cloud service providers are pursuing are architectures that allow them to buy drives directly and put their own software on top of that as opposed to buying that software stack from someone else. So we believe that’s the beginning of a trend that’s probably going to sustain for many, many years.
Aaron Rakers – Any idea of contribution or share position that you have in that environment today?
Dave Mosley – We feel that we are, overall, at least equal to what the standard enterprise share is against our competition and in some cases in a preferred position.
Disclosure: I am long STX.