12:33 PM EDT, 09/04/2024 (MT Newswires) -- Seagate Technology ( STX ) is collaborating with its cloud partners to secure qualifications for its products in the cloud segment, Chief Financial Officer Gianluca Romano said at a technology conference Wednesday.

The process is taking longer than expected due to the rigorous demands placed on the products, especially in core environments. But, the company has the ball rolling and is making good progress every week, Romano said, according to a Capital IQ transcript.

The qualification process for the cloud segment may extend into the next quarter, but the company has made significant advancements in the on-premise data center, a crucial market segment where artificial intelligence-driven demand is expected to increase the consumption in the coming quarters.

The company is confident in its heat-assisted magnetic recording, or HAMR, product despite delays and has begun working with multiple cloud customers in the US and China, expecting the full qualification process in around three quarters, with a ramp-up in volume expected by mid-2025, the executive said.

HAMR's impact on profitability will remain limited until mid-2025, though Seagate ( STX ) is optimistic about achieving significant volume growth in the long-term, Romano said.

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