Seagate Technology Holdings plc ( STX Quick Quote STX - Free Report) recently rolled out its edge-to-cloud mass storage platform, Lyve Cloud, for businesses of all sizes in Singapore. Lyve Cloud platform, unveiled in February 2021, is Seagate’s storage-as-a-service platform (only S3-compatible) intended primarily to help business organizations manage exponential unstructured data growth. The storage-only cloud is famous for its simplicity, flexibility and cost-efficiency. Promising Prospects for Lyve Cloud
Rethink Data report, enterprise data is forecast to increase at an annual growth rate of 42.2% over the next two years.However, enterprises battle to leverage their data efficiently and only 32% of available data is used by business enterprises while the remaining 68% goes waste. In its quest to facilitate always-on mass capacity data storage and activation for enterprises to harness the flow of massive unstructured datasets, Seagate launched Lyve Cloud and tied upwith industry-leading cloud ecosystem partners to deliver hassle-free, efficient and well-integrated cloud storage services. With more than 50 companies in its network, including Zadara, Equinix and PacketFabric, Lyve Cloud aids businesses to utilize their cloud infrastructure fully. For users, Lyve Cloud is cost-effective as the service involves lock-in, API charges and egress fees. This provides its clientele with a reduced total cost of ownership or “TCO” for storing massive datasets. Further, Lyve Cloud’s ISO27001 and SOC2 certifications fulfill the data security requirements of enterprises and provide always-on encryption for data. The latest expansion to Singapore underscores Lyve Cloud’s commitment to helping enterprises in more countries efficiently capture the unstructured data explosion. Further, Seagate's Singapore Lyve Cloud launch augments its storage offerings in the Asia-Pacific region. PacketFabric will collaborate with Lyve Cloud to provide local cloud storage in Singapore. Coupled with that, the companies will provide customers with services needed to manage their expanding data and unlock its full potential, accelerating their digital transformation journey. Improving Opportunities for Seagate
The demand for Seagate’s mass storage capacity solutions is being driven by robust cloud data center demand, recovery in the enterprise market and increasing investments in digital transformation by business enterprises. The data center business is booming owing to the rising adoption of cloud-based solutions and 5G network deployment.
In the last reported quarter, the company reported non-GAAP revenues of $3.116 billion, improving 19% on a year-over-year basis but unchanged sequentially. Robust demand for its mass capacity storage solutions, especially nearline products from cloud data center customers, boosted the top line.
The company shipped 137.1 exabytes for the mass capacity storage market (including nearline and video and image applications as well as network-attached storage or NAS) in the last reported quarter. This marked sequential growth of 4% and year-over-year improvement of 41% in exabytes shipments. However, supply-chain constraints, component shortages and logistics bottlenecks are concerns. Further, higher freight costs and stiff competition in the disk drive market remain near-term headwinds. At present, Seagate carries a Zacks Rank #3 (Hold). Shares of STX have gained 42.1% against the industry’s fall of 61.5% in the past year. Image Source: Zacks Investment Research 3 Solid Picks
Some better-ranked stocks from the broader technology space include
Progress Software ( PRGS Quick Quote PRGS - Free Report) , Badger Meter ( BMI Quick Quote BMI - Free Report) and Cadence Design Systems ( CDNS Quick Quote CDNS - Free Report) . While Progress Software and Badger Meter sport a Zacks Rank #1 (Strong Buy), Cadence carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of the company is pegged at 2%. Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have gained 1.4% in the past year. Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days. Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have dropped 5.2% in the past year. Cadence has a projected earnings growth rate of 10.03% for 2022. The Zacks Consensus Estimate for Cadence’s 2022 earnings has been revised upward by 7 cents in the past 90 days. The long-term earnings growth rate of the company is pegged at 15.4%. Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 9.66%. Shares of CDNS have rallied 3.8% in the past year.