Data-storage manufacturer Seagate
All of these moves make sense, because online backup and recovery, as well as archiving for small and medium-sized businesses, promises to be big business in the near future. These acquisitions also give Seagate a toehold in this burgeoning industry, which might allow it to compete successfully with the likes of Amazon.com
The move also makes sense from a broader strategic perspective. The extraordinary advances that the data-storage industry has made in the past three decades in terms of price, performance, and size have been just as extraordinary as what Intel
However, all of this progress has come at a considerable cost. The data-storage industry has essentially commoditized its product. Luckily, other technological advances have allowed an ever-increasing amount of information to be stored digitally, and these developments have allowed Seagate, SanDisk
This reality will undoubtedly persist for the foreseeable future, and Seagate has demonstrated that it is well equipped to handle this pressure. However, as data storage continues to progress from gigabytes to terabytes, and then to petabytes and eventually exabytes, the broader business opportunity is less about supplying massive amounts of data storage to businesses, and more about helping them manage the information that is contained inside.
The acquisition of EVault is a move toward that end, and it is a sign that Seagate is evolving in the right direction.
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Fool contributor Jack Uldrich is currently ranked 8,892 out of 18,088 participants in CAPS. He does not own stock in any of the companies mentioned in this article. The Fool has a strict disclosure policy.