Seagate CEO Sees Software Acquisitions Bolstering Cloud Offering
September 10, 2013
Grazed from Bloomberg. Author: Sarah Frier.
Seagate Technology (STX) Plc, a maker of storage drives, is on the lookout for software acquisitions that can help it meet booming demand for cloud computing, said Chief Executive Officer Stephen Luczo. The company is determining where it has holes to fill and what to potentially buy, Luczo said in an interview yesterday at Bloomberg’s New York headquarters. The CEO said he sees a bubble in the valuation of cloud-storage providers, which could present buying opportunities when it deflates, he said.
“We do need some technology that we don’t have on the software side,” Luczo said. “When do you buy it and what you pay for it is a different question. Right now it seems a little frothy.” Western Digital Corp. (WDC), the world’s largest maker of hard-disk drives by market value, agreed yesterday to buy Virident Systems Inc., a company backed by Seagate, for $685 million to expand in flash storage…
Flash is a preferred technology for cloud computing because it’s faster and more efficient than traditional spinning disks. Earlier today, Cisco Systems Inc. (CSCO), the biggest maker of networking equipment, said it would buy Whiptail, which makes solid-state memory systems…
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