Seagate Technology Holdings plc ( STX Quick Quote STX - Free Report) and Catalog Technologies Inc are teaming up to accelerate the development of automated and scalable DNA-based computation and storage platforms.
The partnership is aimed at utilizing Seagate's "lab on a chip" technology to minimize the amount of “chemistry” needed for DNA-based storage and computation. The Seagate platform will allow users to test small droplets of synthetic DNA by using smaller amounts of chemicals and require less energy, added Catalog
The droplets will be processed through various reservoirs on the Seagate platform. Chemical reactions are created when DNA from multiple sources is combined to perform a variety of computer tasks, including process optimization, machine learning and search and analytics.
The research will provide prospects for the future generations of DNA-based storage and computation platforms in various form factors like desktop and Internet of Things-sized versions.
Seagate is well-positioned to gain from the robust demand for computing applications like advanced analytics, artificial intelligence and machine learning. Apart from developing DNA-based storage, Catalog has already invented ways to incorporate DNA into these computing applications, hence reducing complexity and costs of storage systems.
Per a report from
The Insight Partners, the U.S. DNA digital data storage market is expected to grow from $21.40 million in 2021 to $711.92 million by 2028 at a CAGR of 65%. The industry is expected to benefit from the high storage density and durability of these DNA-based storage compared to silicon-based storage, added the report.
Seagate invests heavily in product development to tap the growing demand for mass capacity storage solutions. The increasing demand for thinner laptops and tablets over the past few years has created an ideal market for SSDs.
launched Exos X 2U12, 2U24 and 5U84 that use an erasure coding method called ADAPT (Advanced Distributed Autonomic Protection Technology), which reduces data redundancy overhead and speeds up recovery time with fast system rebuilds.
Exos X system combines ADAPT with Seagate’s Autonomous Drive Regeneration, which automatically monitors and rebuilds the drives in place, reducing the need for a manual swap. As a result, it helps the data centers to reduce computer e-waste and administrative burden.
However, the company’s performance is affected by inflationary pressures, non-HDD component shortages and uncertainty prevailing over global economic conditions, particularly at legacy end markets.
The company recently slashed the outlook for the current quarter owing to the deteriorating macroeconomic environment, especially in some Asian markets. Seagate noted that current cautious spending patterns by customers, including global enterprises, OEMs and certain domestic cloud clients, will likely affect demand for mass capacity solutions in the near term.
The company now expects revenues to be $2.1 billion (+/- $100 million) against previous guidance revenues of $2.5 billion (+/- $150 million).
At present, Seagate carries a Zacks Rank #5 (Strong Sell). Shares have lost 24.3% compared with the
industry’s decline of 61.3% in the past year. Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks from the broader technology space are
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