The HDD is not dead: Seagate purchases Xyratex for $294 million

The HDD is not dead: Seagate purchases Xyratex for $294 million
Seagate announced earlier this week that they had acquired Xyratex, the premier maker of hard drive disk (HDD) testing gear, for $374 million which includes the $80 million the company had on its balance sheet.

Xyratex will be integrated directly into Seagate's supply chain. The deal will strengthen Seagate's "vertically integrated supply and manufacturing chain for disk drives and provide uninterrupted access to important capital equipment."



HDD have reached capacities as high as 5TB for consumer drives (which require extensive testing), and the vertical integration of Xyratex should help the company bring in up to $600 million in new revenue by fiscal year 2015, says Seagate.

"This is a strategically important acquisition for Seagate as we continue to focus on delivering best-in-class storage solutions for our customers,"
said Dave Mosley, President of Operations and Technology at Seagate. "As the average capacity per drive increases to multi-terabytes, the time to test these drives increases dramatically. Therefore, access to world-class test equipment becomes an increasingly strategic capability. As a premier provider of HDD testing equipment, Xyratex is an important partner and we are excited to integrate these important capabilities which will considerably streamline our supply and manufacturing chain for our core HDD business. We are also pleased to acquire Xyratex's storage systems and high-performance computing business, which provides us additional opportunities to serve our customers with a broader array of storage solutions."

Written by: Andre Yoskowitz @ 25 Dec 2013 14:01
Tags
hard drives Seagate Xyratex
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  • 6 comments
  • Jemborg

    I like Seagate HDDs

    Its a lot easier being righteous than right.


    26.12.2013 08:15 #1

  • hearme0

    Originally posted by Jemborg: I like Seagate HDDs You would!

    Seagate drives are hated amongst the IT community. HDDs fail within 5 years constantly and this reason is precisely why they nixed their 5 yr. warranty and lowered to 3.

    While I buy Seagates if they're cheap enough.......I truly recognize that they generally fail in short times. Back yo shizzy up!!!

    Perhaps this company's HDD testing utilities will allow Seagate to make a longer lasting product.

    Probably not though.

    26.12.2013 12:52 #2

  • A5J4DX

    Lets see how this is going to go...I hope it does benefit them as Seagates do tend to fail at times

    26.12.2013 15:19 #3

  • Gplanet

    I had several Seagate drives die within a year of purchase. Hope this helps to make better drives.

    AMD FX 6350 (6)CORE UNLOCKED 4.2 GHZ overclocked. 17 GIG RAM. INTERNAL LG BLURAY BURNER. 3TB INTERNAL HDD. (3)1 TB EXTERNAL 8 64 BIT LOGITECH 7.1 SURROUND

    26.12.2013 15:36 #4

  • Jemborg

    Originally posted by hearme0: Originally posted by Jemborg: I like Seagate HDDs You would! WTF??? hahahahahahahahah

    The only brand I've never had a problem with... shame about the rest of you.

    My issues have been mostly with WD and Toshy drives... so shoot me! lol


    But yes, of course, back your important stuff up... blah blah.




    Its a lot easier being righteous than right.


    26.12.2013 20:19 #5

  • xnonsuchx

    It's all subjective. I've had far more WD drives die on me than Seagates. Based on my experience for HDD failures, Hitachi, Samsung and Toshiba would be the most reliable. But I don't consider my personal experience with them to make a sweeping generalization about them. Most modern HDDs are pretty good quality and ANY can die at ANY time. Just keep reliable backups and hope if a failure occurs, it's still under warranty.

    28.12.2013 19:33 #6

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