NOTE: GrowthBeat tickets go up $200 this Friday at 5pm Pacific. VentureBeat is gathering the best and brightest in modern digital marketing to help declutter the landscape, simplify the functions, clarify the goals, and point the way to success. Get the full scoop here, and register by Friday to save!
Datacenter-accelerator Fusion-io acquired storage appliance vendor NexGen Storage for $114 million in cash and $5 million in stock today, the company announced on its website.
The deal will bring 50 NexGen employees into Fusion-io to help the company expand its products and market in the small and medium-sized business space with data storage solutions that provide the speed and reliability of all-flash solutions, while still participating in some of the cost efficiencies of tradition disk memory.
The two companies had already partnered on storage solutions.
“Many SME businesses have lean IT teams and budgets, making it critical to offer an integrated and affordable entry point for flash powered application acceleration that delivers consistent performance, even under demanding workloads,” David Flynn, Fusion-io chief executive said in a statement. “The hybrid NexGen solution combines memory attached flash and disk on leading server platforms to provide a system tuned to deliver performance, price, and capacity.”
Fusion-io had just reported earnings earlier today, announcing $87.7 million in quarterly revenue with a net loss of $20 million, and a drop from last quarter of 27 percent and from the previous year’s quarter of seven percent.
But the company has plenty of coin on hand for the acquisition: $355 million in cash and equivalents.
With Fusion-io’s software and NexGen’s hardware, Fusion-io says that it will now provide:
- independently provisionable performance and capacity with a software-defined architecture
- dynamic real-time flash write caching, read caching, and tiering
- enterprise reliability with more than 250 times more data written over the system’s lifetime than SATA and SAS SSDs
- application performance three times faster than SSDs integrated behind legacy storage controllers
- transparent movement of data between high performance and low cost storage media as needed
As part of the deal, Fusion-io is covering all existing stock agreements and vested equity of NexGen employees.
photo credit: Leonardo Rizzi via photopin
We're studying digital marketing compensation: how much companies pay CMOs, CDOs, VPs of marketing, and more
, with ChiefDigitalOfficer. Help us out by filling out the survey
, and we'll share the results with you.