Seagate's Acquisition of Mirra Reflects Promise of Network-Attached Storage Market

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The timing of Seagate's purchase is appropriate given projected growth in NAS market.

According to The Diffusion Group, Seagate's recent acquisition of privately-held Mirra will position the storage giant to exploit the emerging market for consumer and small office network-attached storage solutions. TDG forecasts rapid growth in this market, as total global home NAS sales will grow from $132 million in 2004 to more than $3.8 billion in 2010, a 30-fold growth in six years.

"We are now entering a critical phase in the market evolution of home networking products and services," said Tom Coughlin, consulting analyst with TDG and author of "DNA of the Digital Home: Trends in Digital Home Storage." "While many disagree about whether the 'digital home' is real or not, there is no doubt that we are seeing a dramatic increase in the amount of personal digital content stored on home PCs - content such as digital photographs, videos, and music, as well as personal information of great value to a household. The amount of this data can add up to hundreds of gigabytes and even more - given advances in the resolution of digital photographs and video, a personal petabyte over the course of a person's life is not out of the realm of possibility."

Coughlin noted that much of this data remains stored on a single computer hard disk drive and that these PCs are seldom backed up to secondary storage media. And while home network owners are the first logical target for network-attached storage solutions, Coughlin believes that it is possible that storage could actually help push home network adoption.

"Although not currently a significant driver for home network adoption, data back-up will rapidly become a crucial element for homes that use multiple PCs and digital consumer electronic devices," Coughlin continued. "As such, many consumers will be driven to purchase home networking solutions in order to set up a comprehensive digital storage system, not simply as a response to already owning a home network. That said, in order for home digital backup to become ubiquitous and often used it must be easy and automatic."

TDG's latest report, "The DNA of the Digital Home: Trends in Digital Home Storage," provides an overview of TDG's recent primary consumer research regarding home networks and connected devices. This report is part of TDG's digital home storage series that also includes "Home NAS: Understanding the Consumer Market," "Home NAS: Understanding the Home Office Worker," and "Home NAS: Banner Tabs." These reports detail the results of TDG's July 2005 survey of more than 1,500 US broadband home network owners and intenders.

About The Diffusion Group (TDG Research)

The Diffusion Group is a consumer technology research and strategic marketing firm focused on the connected consumer and new media. Our mission is simple: to provide timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at

Chart of Global Home Network-Attached Storage Revenue: 2004 - 2010 available at:


Andy Tarczon

The Diffusion Group


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