Western Digital Corporation (WDC - Free Report) recently introduced new Purple drive tailor made for futuristic surveillance cameras. The drives are available in 10 GB and 12 GB variants for $399 and $479, respectively.
Robust adoption of dynamic and complex data-centric applications, including surveillance cameras, require a 24/7 video capture resulting in a demand of data storage architecture that supports the immense workload. The next generation cameras leverage Artificial Intelligence (“AI”) which assists surveillance by reducing false alerts, identifying true threats and enabling better detection.
Notably, modern analytics is increasingly leveraging video recordings to help businesses unlock effective and meaningful insights. These insights in turn will aid the businesses in realizing their goals. One such instance of utilization is retailers analyzing shopping behavior via video facial recognition.
Western Digital’s new drive meets this demand effectively by supporting an“AllFrame” AI technology.
Notably, shares of Western Digital have declined 9.7% of its value in the past year, against the industry’s rally of 29.2%.
The high capacity drives support digital video recorder (“DVR”) and network video recorder (“NVR”) systems with AI-driven capabilities, ensuring a smooth and modern surveillance-class recording.
The AllFrame AI technology enables the new drives to support 16 AI channels per 32 AI streams. Western Digital claims that it is the only product in the market to support these many channels.
The new drive enables smooth capture of videos for the next-generation AI enabled cameras. The aforementioned features ensure real-time data capture and storage in next generation formats of video surveillance.
With the innovative features of the new Purple drive launch, we expect the company to reinforce its market position against the likes of Seagate Technology (STX - Free Report) .
Analyzing the Prospects of the New Drives
The drive is an effective addition to company’s surveillance portfolio. The company’s Purple micro-SD card, Purple Surveillance HDD, and the Ultrastar HDD series are already aiding surveillance.
Per IDC data, exabytes produced by surveillance solutions are projected to grow by 25% through 2021. Additionally, per a MarketsandMarkets report, “Video Surveillance Storage Market” is projected to grow at a CAGR of 22.41% from 2015 to 2020 to reach $18.28 billion.
Furthermore, per an Orbis Research report, as revealed by Reuters, the global video surveillance market is expected to grow at a CAGR of 18.3% from 2017 to 2022 to reach $63.2 billion. The market valuation in 2015 was $19.51 billion.
Per an IHS Markit report, all newly installed video surveillance cameras in 2015 generated 566 petabytes data globally, in one day. The corresponding data is projected to grow over 2,500 petabytes by 2019, on a daily basis.
The aforementioned reports strengthen the prospects of investment opportunities in the new drive designed for advance video surveillance.
Western Digital is making continuous efforts to ensure its products deliver high quality storage solutions across all emerging data-driven technologies. We believe this ongoing expansion of the company’s product portfolio bodes well for the top line.
Zacks Rank & Other Stocks to Consider
Western Digital sports a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked stocks in the broader technology sector are Mellanox Technologies, Ltd. (MLNX - Free Report) and Micron Technology Inc. (MU - Free Report) , both currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The projected long-term earnings growth rate for Mellanox and Micron are 15% and 10%, respectively.
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