Data Storage Systems Manufacturing

Data Storage Systems Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture devices that allow the storage and retrieval of data from computers. Major companies include Dell EMC, NetApp, and Western Digital (all based in the US); Fujitsu, Hitachi, and Toshiba (Japan); and Seagate (Ireland), as well as the data storage divisions of large computer OEMs such as HPE and IBM.

COMPETITIVE LANDSCAPE

Demand is driven by spending levels in the consumer and enterprise computing markets. The profitability of individual companies depends on operational efficiency and rapid product development. Large companies have advantages in development and marketing budgets, component purchasing power, and sales reach, as well as their ability to offer more comprehensive product lines. Because they typically serve a broader customer base, large companies may also be less vulnerable to declines in individual customer segments. Small companies can compete effectively by identifying underserved markets or providing superior technology. The US industry is highly concentrated: the 50 largest companies generate about 99% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major data storage system products include computer storage devices which account for more than 50% of the industry revenue. Other computer storage devices account for about 40%, followed by disk drives (about 10%). Other products include storage area networks (SANS), tape drivers, and disk subsystems and disk arrays.