Western Digital Corp. (WDC), or WD, has expanded its network attached storage (NAS) drives with the launch of WD Sentinel DX4200, targeting its small and medium business (SMB) customer base. The all new WD Sentinel DX4200 is a Window-enabled storage device that can store up to 16 TB of data. The device is priced at approximately $1,699.99 for 8 TB and $2,199.99 for 16 TB of storage space.
This NAS device offers greater internal disk space, faster processing speed, improved memory, and integrated solid state drives (SSDs), which are aimed at reducing backup time and accelerating the data recovery process. The WD Sentinel DX4200 is based on Intel’s (INTC) Atom dual core processor that can meet the growing needs of small businesses with improved flexibility and security.
Additionally, WD Sentinel DX4200 includes RAID (redundant array of inexpensive disks) solutions that enable data storage using multiple drives and various data replication strategies to minimize the impact of the failure of any one drive.
The growing demand requires a new storage standard and easy accessibility. We believe that Western Digital’s latest network attached storage hard drive will rake benefits of pent-up demand within the storage market.
Western Digital’s entry into the wireless devices market comes at a time when storage services related to smartphones and tablets are witnessing large-scale adoption. However, this segment is highly competitive given that strong players like Seagate Technology plc (STX) and Kingston already offer a number of products in the category.
Nevertheless, Western Digital is gaining significantly from its cloud-based business. Cloud-based storage has become the order of the day as it allows users to access content through different gadgets such as smartphones, tablets and personal computers.
We believe the secular growth of digital data and increasing exposure to the small and medium business space are long-term positives. The company is launching storage devices to attract more customers within this space.
However, a sluggish macroeconomic environment coupled with a declining PC market and higher investments in innovative products remain headwinds.
Currently, Western Digital has a Zacks Rank #3 (Hold).
Meanwhile, investors could consider a better-ranked stock in the same industry like Rambus Inc. (RMBS), sporting a Zacks Rank #1 (Strong Buy).
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