U.S.' StorageTek plans to boost growth in Asia
U.S.' StorageTek plans to boost growth in Asia
SINGAPORE (Reuter): U.S. data storage provider Storage
Technology Corp (StorageTek) said yesterday it planned to use
Singapore as a hub for rapidly expanding data storage in Asia.
Bruce Taafe, vice-president for Asia Pacific operations, said
Singapore was chosen as the first Asian office outside Japan
because of its infrastructure, advanced application of
information technology and proximity to key industry players.
"Our business model says we need direct operations in
Singapore...Singapore will become the hub of ASEAN (Association
of Southeast Asian Nations) in the next two to three years,"
Taafe told a news conference.
He said the company had already installed Singapore $40-50
million worth of products ahead of the official opening of its
Singapore office yesterday.
A sales force will be developed in the first year, along with
consulting services, he said.
"We'll be offering the government of Singapore and private
industry a central depository in future where people can put
their data in a storage farm," Taafe said.
The US$2 billion company provides storage solutions in tape,
disk and network products, as well as consultancy on storage
management to government agencies and financial institutions.
StorageTek has more than an 80 percent share of the high-end
tape storage market worldwide. Its systems are carried by
computer hardware giants such as IBM Corp
The company expects to spend about S$10-15 million in the
first three years to set up its Singapore distribution base. This
excludes funds needed to set up a storage farm, consulting
services, research and development and manufacturing facilities.
Taafe said StorageTek in Asia would focus on data storage
solutions for high-end mainframe users and personal computers.
The Asia-Pacific region accounts for about eight percent of
company revenue, but this is expected to increase to 20-25
percent of corporate revenue in five years, Taafe said.
StorageTek will also work with intranet providers, enabling
more PC users to retrieve information from their homes.
Company officials have met with Singapore's Economic
Development Board and National Computer Board to discuss its
expansion plans and the establishment of a storage farm.
A working model of a storage farm in Australia will be ready
in June, and that model could be transferred to Singapore nine to
12 months later, Taafe said.