Seagate Technology Holdings PLC (STX, Financial) has released findings from a global survey conducted by Recon Analytics, revealing that business leaders across 15 industries and 10 countries foresee a significant increase in data storage demand due to the adoption of artificial intelligence (AI) applications. The survey, conducted in November 2024, indicates that cloud-based storage is expected to grow by over 100% in the next three years, with hard drives playing a crucial role in this expansion. The press release was published on Business Wire.
Positive Aspects
- 72% of surveyed businesses are currently using AI, indicating widespread adoption.
- 61% of respondents expect their cloud-based storage to more than double in the next three years.
- 90% of AI-adopting businesses believe longer data retention enhances AI outcomes.
- Seagate is focused on increasing storage capacity through areal density innovation.
Negative Aspects
- Security is ranked as the most important component of AI infrastructure, potentially overshadowing storage needs.
- Increased data storage demands may lead to higher operational costs for businesses.
Financial Analyst Perspective
From a financial standpoint, Seagate Technology is well-positioned to capitalize on the growing demand for data storage driven by AI adoption. The company's focus on enhancing storage capacity through technological innovations like HAMR-based hard drives could lead to increased market share and revenue growth. However, the emphasis on security as a top priority in AI infrastructure suggests that Seagate may need to invest in security solutions to complement its storage offerings.
Market Research Analyst Perspective
The survey results underscore a significant trend towards increased data retention and storage needs, driven by AI applications. This presents a substantial market opportunity for Seagate and other storage providers. The anticipated growth in cloud-based storage aligns with broader industry trends towards digital transformation and data-driven decision-making. Seagate's strategic focus on innovation and capacity expansion positions it well to meet these evolving market demands.
Frequently Asked Questions
What percentage of businesses are currently using AI?
72% of surveyed businesses are currently using AI.
How much is cloud-based storage expected to grow in the next three years?
61% of respondents expect their cloud-based storage to increase by over 100% in the next three years.
What is the most important component of AI infrastructure according to the survey?
Security is ranked as the most important component of AI infrastructure.
What is Seagate's focus to meet the growing storage demand?
Seagate is focused on areal density innovation to increase storage capacity for each platter in its HAMR-based hard drives.
Read the original press release here.
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