Seagate Technology Holdings plc ( STX Quick Quote STX - Free Report) and Zoom Video ( ZM Quick Quote ZM - Free Report) recently signed a multi-year cloud storage deal. Per the agreement, Zoom Video will utilize Seagate’s Lyve Cloud to help its clients store meeting recordings.
Users can save their Zoom meeting recordings media files on Seagate’s S3 storage-as-a-service (STaaS) platform. The deal currently involves a single Silicon Valley cloud location. The service could be extended to other locations in the coming days, noted Seagate.
By leveraging Lyve Cloud, Zoom Video users will get the benefit of secure storage and will be able to seamlessly share recordings’ files.
Exponential Data Growth Bodes Well for Lyve
In February 2021, Seagate
debuted Lyve Cloud platform. Lyve Cloud is the company’s storage-as-a-service platform (only S3-compatible) intended primarily to help business organizations manage exponential unstructured data growth. According to Seagate’s Rethink Data report, enterprise data is forecast to increase at an annual growth rate of 42.2%. Datasets are increasingly used by enterprises to unlock the full potential value of their business. However, only 32% of available data is used by business enterprises while the remaining 68% goes waste.
For users, Lyve Cloud is cost effective as the service does involve lock-in and egress fees. This provides its clientele with reduced total cost of ownership or “TCO” for storing huge datasets.
Seagate teamed up with
Equinix ( EQIX Quick Quote EQIX - Free Report) to expand the accessibility of the Lyve service. Lyve Cloud at Equinix offers storage at edge metro location, where the data is generated. This helps enterprises to “consume the scale and efficiency of object storage as a service” at the edge, noted Seagate.
Clients can use Equinix Fabric to connect data sources to a various edge- and cloud-based applications.
In March 2021, Seagate rolled out Lyve Data Transfer Services. Lyve Data Transfer Services are designed to aid businesses to quickly transfer huge datasets in a secure manner from edge to private, public or hybrid cloud environments.
Improving Opportunities for Seagate
Robust cloud data center demand and a recovering enterprise as well as video and image application markets are driving demand for the company’s mass capacity storage solutions.
In the last reported quarter, the company reported non-GAAP revenues of $3.031 billion, which increased 19.7% on a year-over-year basis and 10.3% sequentially.
The company shipped 123.3 exabytes for the mass capacity storage market (includes nearline and video and image applications as well as network-attached storage or NAS) in the last reported quarter. This marked sequential growth of 11% and year-over-year improvement of 36% in exabytes shipments.
Supply chain disruptions and higher costs due to COVID-19 amid stiff competition in the disk drive market from the likes of
Western Digital ( WDC Quick Quote WDC - Free Report) are concerns.
At present, Seagate carries a Zacks Rank #3 (Hold). You can see t
he complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.