Seagate 2014 Annual Report Download - page 47
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consumerelectronicdevices,andenterpriseuseofbigdataanalyticsaredrivingthegrowthofdigitalcontent.Factorscontributingtothisgrowthinclude:
•Creation,sharing,andconsumptionofmedia-richdigitalcontent,suchashigh-resolutionphotos,highdefinitionvideo,anddigitalmusicthrough
smartphones,tablets,digitalcameras,personalvideocameras,DVRs,gamingconsolesorotherdigitaldevices;
•Creation,aggregationanddistributionofdigitalcontentthroughservicesandotherofferingssuchasFacebook®,Instagram®,iTunes®,LinkedIn®,
Netflix®,Pandora®,Google®andYouTube®;
•Newsurveillancesystemswhichfeaturehigherresolutiondigitalcamerasandthusrequirelargerdatastoragecapacities;
•Creationandcollectionofdatathroughtheevolutionoftheinternetofthingsecosystem,bigdataanalyticsandnewtechnologytrendssuchasself-
drivingcarsanddrones;
•Buildoutoflargenumbersofclouddatacentersbycloudserviceprovidersandprivatecompaniestransitioningon-sitedatacentersintothecloud;
•Protectionofincreaseddigitalcontentthroughredundantstorageonbackupdevicesandexternallyprovidedstorageservices.
Asaresultofthesefactors,thenatureandvolumeofcontentbeingcreatedrequiresgreaterstorage,whichismoreefficientlyandeconomicallyfacilitatedby
highercapacitystoragedevicesinordertostore,manage,distribute,analyzeandbackupsuchcontent.Weexpectthistosupportthegrowthindemandfor
electronicdatastoragesolutionsindevelopedandemergingeconomieswellintothefuture.
Theamountofdatacreatedaswellaswhereandhowdataisstoredcontinuestoevolvewiththeproliferationofmobiledevices,thegrowthofcloud
computing,andtheevolvinginternetofthings.Inaddition,theeconomicsofstorageinfrastructurearealsoevolvingwiththeutilizationofpublicandprivate
hyper-scalestorageandopen-sourcesolutionsreducingthetotalcostofownershipofstoragewhileincreasingthespeedandefficiencywithwhichcustomerscan
leveragemassivecomputingandstoragedevices.Accordingly,weexpectthesetrendswillcontinuetocreatesignificantdemandforelectronicdatastorage
solutionsgoingforward.
DemandTrendsforDiskDrives
Webelievethatcontinuedgrowthindigitalcontentrequiresincreasinglyhigherstoragecapacityinordertostore,aggregate,host,distribute,analyze,manage,
backupandusesuchcontent.Wealsobelievethatasarchitecturesevolvetoservethegrowingcommercialandconsumeruserbasethroughouttheworld,the
mannerwhichharddrivesaredeliveredtomarketandutilizedbyourcustomerswillevolveaswell.
Webelievethatintheforeseeablefuturethetraditionalenterprise,clientcomputemarketsthatrequirehighcapacitystoragesolutions,andthedataintensive
clientnon-computemarketswillcontinuetobebestservedbyharddiskdrivesduetotheindustry'sabilitytodeliverthemostcosteffective,reliableandenergy
efficientmassstoragedevices.Furthermore,theincreaseduseofclientnon-computedevicesthatbothconsumemedia-richdigitalcontentstreamedfromthecloud
andcreaterichdigitalcontentthatisstoredinthecloud,increasesthedemandforhighcapacityharddiskdrivesinenterpriseNearlineapplications.
IndustrySupplyBalance
FromtimetotimetheHDDindustryhasexperiencedperiodsofimbalancebetweensupplyanddemand.Totheextentthatthediskdriveindustrybuildsor
maintainscapacitybasedonexpectationsof
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