Feeds

SanDisk buys dose of the SMARTs for $307m

SSD consolidation speeds up

Internet Security Threat Report 2014

SSD supply consolidation is starting to speed up, with SanDisk buying SMART Storage Systems for $307m, representing a nice exit for investment fund Silver Lake, and following on from last week's acquisition of sTec by WD for $340m.

Fresh from investing in flash-based cloud gateway startup Panzura, SanDisk is ramping up its enterprise flash device supply push by buying SMART with its Optimus and CloudSpeed product lines and Guardian technology for lengthening the endurance of MLC-based SSDs.

SMART Storage Systems was spun off from Smart Modular Technologies in February 2012, and the two are part of the SMART Worldwide Holdings group of companies owned by investment fund Silver Lake. It had about $25m revenues in its latest quarter to the end of May, so SanDisk is buying it for about three times its $100m revenue steam.

Silver Lake and its affiliates bought Smart Modular in 2011 for $645m, so it has got slightly less than half back with this deal.

SanDisk supplies CE flash product as well as, latterly, a line of enterprise SAS and SATA SSDs. It is a partner in flash fabs with Toshiba and yesterday announced it is proceeding with the construction of the shell of the joint venture's Fab 5 wafer fabrication plant in Yokkaichi, Japan.

The company said: "The new cleanroom will provide the space needed for additional equipment required for transitioning the wafer capacity in Fab 3, Fab 4 and phase one of Fab 5, to next generation 2D NAND technologies and to early generations of 3D NAND technology."

Both company boards have agreed the deal and 250 SMART employees will join SanDisk. This is SanDisk's fourth acquisition in the storage market:

  • Schooner Information Technology in June 2012, a supplier of virtual machine-based MySQL and Memcached web cache program acceleration software using cores, threads and solid state drives.
  • Pliant flash controller business in May 2011
  • FlashSoft flash cache software business in February 2012.

SanDisk has also invested in all-flash array supplier Whiptail through its SanDisk Ventures unit, the one involved in the Panzura financing.

SanDisk EVP and chief strategy officer Sumit Sadana provided a canned quote: "This acquisition enables SanDisk to address a $1.6bn market opportunity in enterprise SATA products, and complements our strong enterprise SAS product portfolio. With this combination, SanDisk will have products qualified with six of the top seven storage OEMs worldwide."

We have suggested in the past that SanDisk might want to move up the stack and start offering flash storage arrays of some sort instead of confining itself to the flash storage hardware and software component market.

Supplier consolidation in the SSD market is accelerating and it now looks likely to the storage desk at Vulture Central that Seagate might feel impelled to strengthen its SSD credentials by buying an existing SSD supplier too. (Shh... no one mention OCZ). Stifel Nicolaus analyst Aaron Rakers wonders whether Fusion-io is now a likely target for enterprise flash device consolidation efforts.

It is expected that the acquisition will close in August. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?