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Seagate rejigs for greater consumer focus

by Stuart Wilson, Monday 17 March 2008

Hard drive vendor Seagate Technology has formed a new department to focus on growing opportunities in the consumer electronics (CE) sector. Seagate has formed a consumer solutions division, which is comprised of the company’s CE business unit plus the former Seagate branded solutions business, which was dedicated to delivering branded storage solutions under the Seagate and Maxtor brands.

The vendor claims that its organisational restructuring will allow it to better serve both the traditional and emerging storage markets. Brian Dexheimer, currently EVP and chief sales and marketing officer, will become consumer solutions division president, assuming direct responsibility for this new organisation.

The company’s CE business unit currently serves customers who design and distribute consumer electronics products such as game consoles, personal media players, digital video recorders and other home media devices. Within the new combined organisation, the CE business will remain under the direct management of general manager Pat King, who will also lead branded sales and marketing activities.

Dave Wickersham, president and COO, will assume responsibility for Seagate’s enterprise compute business unit under general manager Sherman Black’s management; the personal compute business unit led by general manager Mike Wingert; and the new business initiatives advanced technology business unit led by general manager Phil Pollok.

“The home storage market is expected to grow tenfold in the next five years and represents an increasingly significant opportunity for Seagate,” said Bill Watkins, Seagate CEO. “By combining the branded and CE business units we leverage our strength in both areas to deliver a consolidated vision and innovative integrated storage solutions designed to accommodate the rapidly escalating requirements of digital content storage, protection, expansion and organization in the home.”

“In addition, we believe there are secondary benefits that will allow us to optimise cost and process efficiency while offering greater scale and consistency in product development, and increase coordination and leverage in sales and marketing,” he added.

“The enterprise and personal compute business units share common DNA in the technical innovation around capacity, performance, power consumption and other customer requirements,” continued Watkins. “I believe that a closer and more formal alignment between these business units and the core design, development, operations, and quality organisations reporting in to Dave will facilitate faster communication, faster prioritisation, and faster decision making, further benefiting how we execute in these critical markets.”

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