Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
UCS Invicta: Integrated Flash
Deploy flash memory technology to
deliver peak workload performance.

Find out more>>
Data Storage
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
SanDisk Shift Speeds Up with Fusion-IO Purchase

SanDisk Shift Speeds Up with Fusion-IO Purchase
By Jeremy C. Owens

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Milpitas flash-memory company SanDisk is purchasing enterprise-flash company Fusion-IO to accelerate its efforts to enable the "flash-transformed data center." Fusion-IO should enhance SanDisk's ability to offer businesses complete storage packages; the company was one of the first to succeed at providing flash solutions.
 



SanDisk, which has found huge sales gains by focusing on business needs for its ubiquitous flash memory products, juiced that area of its business by agreeing to purchase enterprise-flash company Fusion-IO for more than $1 billion.

SanDisk announced Monday morning that it has agreed to pay $11.25 per share for the Salt Lake City company, which values Fusion-IO at $1.21 billion; SanDisk will commit $1.1 billion in cash for the deal, after assuming Fusion-IO's cash reserves.

"Fusion-io will accelerate our efforts to enable the flash-transformed data center, helping companies better manage increasingly heavy data workloads at a lower total cost of ownership," SanDisk CEO Sanjay Mehrotra said in Monday's announcement.

The Milpitas flash-memory company, known for memory cards popular for consumer products such as digital cameras, has used acquisitions to muscle its way into the booming market for flash storage on a grander level. SanDisk purchased two software companies, Schooner Information Technology and FlashSoft, in 2012 and followed that up with the $307 million acquisition of Newark-based solid-state drive manufacturer SMART Storage Systems in 2013.

With flash storage becoming fashionable in data centers and other large corporate storage, SanDisk capitalized on its purchases and increased its annual sales more than $1 billion in 2013, topping $6 billion in revenues for the first time and experiencing a gigantic 150 percent gain in profits.

Fusion-IO should enhance SanDisk's ability to offer businesses complete storage packages -- the company was one of the first to succeed at providing flash solutions for data centers. Founded in 2005, Fusion-IO arrived just as cloud computing and big data created a big need for bigger and faster storage solutions and found big-name clients such as Apple and Facebook, with the Menlo Park company accounting for just less than half of Fusion-IO's business when the enterprise-flash company went public in 2011.

Fusion-IO went public at $19 a share and zoomed up to $25 in its debut on Wall Street, pushing its valuation up to nearly $2 billion as optimism abounded with Apple cofounder Steve Wozniak as the company's chief scientist. However, the company has suffered from instability at the top, firing then-CEO Don Basile before its IPO and losing cofounders David Flynn and Rick White, the CEO and chief marketing officer respectively, in 2013 as Fusion-IO's huge sales growth began to disappear.

Since producing a profit of $4.6 million and increasing sales more than 500 percent in its 2011 fiscal year, Fusion-IO has yet to show off those abilities again. Sales growth in the 2013 fiscal year slowed to 20 percent, and Fusion-IO tallied a loss of more than $38 million; With three quarters gone in its 2014 fiscal year, Fusion-IO is actually on track to post a decline in sales this year, with revenues down 13.8 percent year-over-year through nine months. (continued...)

1  |  2  |  Next Page >

 


© 2014 San Jose Mercury News (CA) under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Data Storage
1.   Splunk Cuts Prices, Vows 100% Uptime
2.   Cloud Firms Offer Azure Starter Kit
3.   Amazon Intros Zocalo Storage Service
4.   EMC Moves Toward Hybrid Cloud
5.   Oracle Boosts ZS3 Storage Server Line


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.