Seagate Seeks East-Data-West Computing Opportunities

The Seagate sales space is seen throughout a commerce present in Shanghai. The US-listed information storage firm is the one worldwide arduous drive producer with a manufacturing base in China. JIN RONG/FOR CHINA DAILY

US-listed information storage firm Seagate Know-how sees nice alternatives in China’s east-data-west computing mission, and is dedicated to offering reasonably priced inexperienced options to assist native telecom operators and Web corporations to raised retailer information.

The east-data-west computing mission refers to sending information collected from the extra affluent jap areas of China to the much less developed however resource-rich western areas for storage, calculation and suggestions, in addition to the institution of extra information in western China. which can assist the nation enhance its imbalance within the design of digital infrastructure and maximize the worth of information as a component of manufacturing, consultants stated.

Sandy Solar, senior vice chairman and basic supervisor for China at Seagate Know-how, stated the east-data-west computing mission, formally launched in March this yr, might be a driving drive for the event of the info economic system.

“We’ve already felt the vitality. Because the mission was introduced, we have now seen clear funding methods from our shoppers. Telecom operators, for instance, are rising very quick, they’re already within the high 5 of our shoppers, as they spend so much on information middle storage merchandise and options,” Solar stated.

China’s funding in massive information facilities is predicted to develop greater than 20 % yearly throughout the 14th 5-Yr Plan interval (2021-25), and the cumulative funding in associated fields will exceed 3 trillion yuan (444 billion {dollars}), in accordance with a forecast by the Nationwide Improvement and Reform Fee.

Solar Wei, deputy director of the Excessive-tech Innovation and Improvement Division of the NDRC, stated, “The event of huge information facilities will drive funding in upstream and downstream industries corresponding to data expertise analysis, improvement and manufacturing. (and merchandise), telecommunications networks and vitality”.

Seagate’s Solar stated, “Sooner or later, information facilities may have larger storage capability, larger information processing capabilities, and might be more and more inexperienced.”

He stated China attaches nice significance to sustainable improvement, and one in all Seagate Know-how’s arduous drive-related applied sciences can assist save 30 % of electrical energy for information facilities.

Seagate Know-how is the one worldwide arduous drive producer with a manufacturing base in China. Regardless of unfavourable impacts from the COVID-19 pandemic, its manufacturing unit in Wuxi, Jiangsu province, managed to publish a 3 % year-on-year enhance in output to eight.3 billion yuan within the first half.

The arduous drives produced by the Wuxi manufacturing unit, which has about 6,000 staff, not solely meet the demand of the Chinese language market, but additionally serve as much as 70 % of Seagate Know-how’s international prospects at their peak.

“The Wuxi manufacturing unit has clever manufacturing with automated manufacturing. It may assemble a tough drive in a mean of 4 seconds. With huge information because the core driving drive, the plant additionally carries out digital administration of manufacturing and manufacturing.” Solar stated.

To higher meet the particular calls for of Chinese language prospects, Seagate has tailored merchandise for various industries, corresponding to good metropolis and safety. It has additionally partnered with Chinese language shoppers to determine joint labs in areas corresponding to cloud computing and information restoration, to rapidly reply to their wants.

“We’ve shut relationships with Alibaba Cloud, Tencent Cloud and Chinese language server maker Inspur. They’re main the world in adopting the most recent technology of storage merchandise,” Solar stated.

Knowledge generated by China is predicted to account for 27.8 % of worldwide information by 2025, in accordance with a forecast by market analysis agency Worldwide Knowledge Corp.

To higher capitalize on alternatives, Solar stated Seagate Know-how spends greater than $1 billion on analysis and improvement every year.

“Seagate will additional develop its design with the event of China’s digital economic system. We are going to give attention to the event of latest infrastructure and the East-Knowledge-West computing mission to determine a robust information infrastructure,” Solar stated.

Microsoft calms market fears with strong revenue growth forecast

A Microsoft brand is seen in Los Angeles, California, U.S. November 7, 2017. REUTERS/Lucy Nicholson

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July 26 (Reuters) – Microsoft Corp (MSFT.O) on Tuesday it forecast this fiscal yr’s income to develop in double digits, boosted by demand for cloud computing companies and sending shares up 5%.

The robust outlook reveals that Microsoft continues to learn from the pandemic-led shift to hybrid working fashions and comes at a time when buyers brace for an financial downturn, with inflation hovering and customers chopping again on spending.

Bob O’Donnell, an analyst at TECHnalysis Analysis, stated Microsoft’s forecast reveals that regardless of destructive financial traits, corporations proceed to maneuver extra enterprise and work on-line.

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“I do not suppose it is distinctive to Microsoft,” he stated of the prospect. “Microsoft is very nicely positioned due to the number of companies it does and the vital function its software program and computing companies play for organizations.”

Regardless of the constructive outlook for the fiscal yr that begins July 1, Microsoft’s fourth-quarter outcomes fell barely, harm by a stronger greenback, slowing PC gross sales and decrease spending by advertisers.

Nonetheless, Microsoft had its finest quarter for its cloud enterprise with document bookings for its cloud service referred to as Azure, stated Brett Iversen, common supervisor of investor relations at Microsoft.

Azure development was 40%, lacking the 43% analytics goal compiled by Seen Alpha. It rose 46% if foreign money components are eliminated. In its broader clever cloud division, income rose 20% to $20.9 billion, above Wall Road’s common goal of $19.1 billion, in response to Refinitiv.

For the primary quarter ending September 30, the clever cloud division was forecast to generate between $20.3 billion and $20.6 billion, with the excessive finish barely above analyst forecasts.

“We’re taking a look at bigger, longer-term commitments and received a document variety of offers of greater than $100 million and $1 billion this quarter,” CEO Satya Nadella stated. “We have now extra information heart areas than every other supplier and we shall be launching 10 areas over the following yr.”

Microsoft faces strain from a stronger greenback because it earns about half of its income outdoors the USA. That prompted the corporate to decrease its earnings and income forecasts for the fourth quarter in June. Shares of the Redmond, Washington-based firm have fallen 25% this yr. learn extra

The US greenback index rose greater than 2% within the quarter ended June and virtually 12% this yr, in comparison with a 1% decline a yr earlier throughout the identical interval.

With out the stronger greenback, the corporate’s 12% year-over-year income development would have been 4 share factors greater, Iversen informed Reuters. Three principal components lowered fourth-quarter income by about $1 billion.

The alternate fee had a destructive affect on revenues of virtually $600 million. A downturn within the PC market hit greater than $300 million in income for Home windows OEMs. And the slowdown in advert spending harm LinkedIn and information and search advert income by greater than $100 million.

“As a result of Microsoft is the dimensions that they’re, it is arduous for them to not mirror the broader financial system,” stated John Freeman, vice chairman of fairness analysis at CFRA Analysis. “We have now inflation and that’s clearly going to lower client demand.”

Weaker client demand additionally weighed on gaming income, which fell 7% year-on-year as a result of a drop in Xbox {hardware}, content material and companies, the corporate stated. It’s anticipated to drop within the low to mid single digits this quarter, pushed by declines in personal content material.

Microsoft reported income of $51.87 billion within the fourth quarter, in comparison with $46.15 billion a yr earlier. Analysts on common had anticipated income of $52.44 billion, in response to Refinitiv IBES information.

Web earnings elevated to $16.74 billion, or $2.23 per share, for the quarter ended June 30, from $16.46 billion, or $2.17 per share, a yr earlier.

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Reporting from Akash Sriram in Bengaluru and Jane Lee in San Francisco; Edited by Peter Henderson and Lisa Shumaker

Our requirements: The Thomson Reuters Belief Rules.