The Bear Market Uncovers Bargains in Data Storage
Understanding data storage technology helps investors identify winners and losers.
Even in a struggling economy, the world continues to generate vast amounts of data every day. Bits of data are flying everywhere as retailers track individual items instead of SKUs, doctors share enhanced medical images, and consumers generate massive libraries of digital media. Various estimates put annual data growth between 30% and 50% with no end in sight. In contrast to other areas of IT, where reduced headcounts limit the need for new PCs and server virtualization damps demand for new equipment, companies continue to find room in their scarce budgets to invest in storage technologies.
By examining major trends in the storage industry we have spotted some opportunities among emerging firms and reaffirmed our conviction that certain industry giants are positioned for success. Additionally, we have identified a few companies with impressive technology offerings that lack a compelling strategic position. Here are the big trends we are seeing in the storage industry.
Michael Holt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.