Seagate sails in high-end seas

Seagate sails in high-end seas

Seagate Technology, a data technology company specialising in storage, continues to consolidate its presence in the Asia-Pacific area with its newly completed manufacturing plant in Singapore. The plant produces 50,000 disk drives per day and employs 19,000 people, making it the largest employer after the government. The high employment rate is a fact that the company is very proud of, as is the fact that Seagate Technology is named in Fortune magazine's Most Admired Corporations - a first for any disc drive manufacturer.

In 1996 Seagate spent over $US1 billion on equipment, buildings, extensions and the like, and in 1997 expects to invest the same amount again. The hard drive manufacturing facility stretches across 1 million square feet, and has been specifically designed for building hard drives. It has been built complete with conductive flooring and Class 100 cleanrooms, which are cleaner than hospital operating rooms.

Development of facilities is not just spent on the manufacture of drives, but on Seagate employees as well. A "wellness centre" is a feature of the plant, where free medical attention is provided for employees. The eating area provides cheap food, and caters to people of all religions and preferences - even McDonalds has moved in and opened a branch.

With a major percentage of Seagate employees commuting from Malaysia every day, the company has restructured its working hours to cater for the two and a half hour each-way journey many make to work. Seagate employees work three days on, four days off, then four days on and three days off to ensure that five-hour journeys are not being made five days a week. The working day is twelve hours.

Seagate software

Seagate continued its commitment to its "cover all markets", vertical integration policy with the establishment of Seagate Software three years ago. Built up through the acquisition of ten companies, Seagate Software has two focuses: the Network and Storage Management group - which aims to increase efficiency in networks - and the Information Management Group - which aims to increase the effectiveness of the user.

Included in the Information Manage-ment group are the Crystal Reports product line of data reporting tools and the Holistic Systems strategic business intelligence software, Holos.

The Network and Storage Management group was developed through the acquisition of several companies, namely: Arcada, Palindrome, NetLabs, Network Computing, Frye Computer Systems, Creative Interaction Technologies, OnDemand Software, and Calypso Software Systems. As with the Information Management Group, the Network and Storage Management group is aimed at all levels of organisations, from desktops to networks of any size.

Seagate's success, and perhaps its main focus, is the high-end corporate market. Joel Stead, vice- president and managing director, Asia-Pacific sales and marketing, said: "we are cashing in on the high-end market, and the corporates are driving a lot of demand for PCs and servers." With the success of Seagate in this arena, it is perhaps not suprising that the software side of the com-pany has not found much of the limelight. But Seagate Software hopes to have a greater market awareness by the end of this year, and Australia can expect to see more of the company through planned roadshows of its wares.

The strategic partners of Seagate software are Microsoft, Novell, IBM, Compaq, Cabletron, HP and Oracle.

Seagate Technology Australia

Tel (02) 9725 3366 Fax (02) 9725 4052

Seagate recently released its revenue and earnings figures for Q3, and its plans for the upcoming year. It has recorded a record revenue of $US2.50 billion, and a net income of $US257 million. Revenue and net income for the same quarter last year, before the merger with Conner Peripherals, were $US2.40 billion and $US213 million respectively.

More than 90 per cent of Seagate's revenue comes from its hard drive sector, approximately $US95 million per quarter comes from its tape storage products, $60 million from its software sector (yes, Seagate isn't just a storage company), and about $50 million from components. In this last quarter (Q3 for fiscal year '97), distributors accounted for 24 per cent of the company's revenue, and OEMs the other 76 per cent.

Seagate Technology Australia

Tel (02) 9725 3366 Fax (02) 9725 4052

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