Yahoo Finance Seagate (STX) Expands Lyve Cloud Across UK to Reduce Data Costs
Seagate Technology Holdings plc STX has announced that it is expanding Lyve Cloud across the U.K. to tap the growing demand for data usage and help organizations minimize their data costs.
Per a survey by Seagate, British businesses spend an average of £213,000 annually solely on storing and maintaining their data. This also highlights how businesses prioritize data investment over energy expenses, employee well-being and training.
The rising data expenses also reduce the funds allocated to innovative projects. The survey concluded that UK-based organizations are allocating about one-third of their IT budgets to data storage and management.
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This represents an opportunity for the company to deploy its Lyve Cloud storage-as-a-service, which offers its users a cost-efficient way to manage and store their data.
In October, the company unveiled the Lyve Cloud Analytics platform to help business organizations manage exponential unstructured data growth across multi-cloud environments and eliminates costs such as egress and API fees and vendor lock-ins.
Lyve Cloud decreases the complexity and cost of storage infrastructure, hindering businesses from utilizing their data fully. Organizations may break down data silos, gain insights from their data, and significantly lower their total cost of ownership by utilizing Lyve Cloud in scenarios like data analytics, data repository for content collaboration and backup/disaster recovery.
Lyve Cloud enables organizations to handle and move large amounts of data quickly and securely. This results in considerable cost savings and speeds up digital transformation and innovation.
The current expansion may provide a steady revenue stream for the company in the long term, owing to ongoing digitalization and rising data costs. Per a report from Future Market Insights, the multi-cloud storage market is estimated to grow $23.7 billion in 2022 and is forecasted to reach $111.3 billion by 2032, registering a CAGR of 16.7% from 2022 to 2032. However, complex data access problems and high costs limit effective data use.
In May, the company announced its expansion strategy for its Lyve Cloud, including three new Lyve Cloud regions in the United States (Dallas, Oklahoma City and Washington DC) as well as the new regions in Germany, India, Japan and the UK.
These new regions will be complementary to the company’s Singapore Lyve region and the existing regions in the United States, taking the total to 10 regions with 16 availability zones.
However, the company continues to suffer from global macroeconomic weakness, significant inventory adjustments by customers and weakness in consumer spending. Also, leveraged balance sheets and stiff competition are further concerns.
Seagate currently carries a Zacks Rank #5 (Strong Sell). Shares have lost 49.3% compared with the sub-industry’s decline of 58.2% in the past year.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks ANET, Plexus PLXS and Super Micro Computer SMCI, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have jumped 13.3% in the past year.
The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.
Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 23.3% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 111.3% in the past year.
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