Feeds

Seagate in surprise $450m LSI Flash gobble

Will they, won't th - oh wait, yes they will

Protecting against web application threats using SSL

Wow! Didn’t see that one coming; Seagate has scooped up the LSI flash business from Avago, rewriting the flash product supply business at a stroke, and speeding the concentration of flash product supply into fewer hands.

Avago bought LSI in December 2013 for a cool $6.6 billion. Now Seagate will buy LSI’s flash biz, the Accelerated Solutions Division (ASD), and its Flash Components Division (FCD) for $450 million in cash.

This kind of acquisition by Seagate has been widely expected, and indeed recommended, not least by us here.

But Seagate had been so quiet on the issue that people were beginning to think it was happy to stick with spinning rust and punt it to cloud suppliers for their storage needs.

Seagate had apparently stood by while competitor WD bought a string of flash companies, such as Virident, sTec and Velobit, and added them in to subsidiary HGST’s Intel-based Ultrastar SSD business.

Until now Seagate’s only flash interest was its Pulsar SSD line. Now it has a line of Nytro PCIe flash and Sandforce controllers. LSI had no significant tie up with a flash foundry and neither did Avago. Seagate, however, has a relationship with NAND flash fab leader Samsung, so that hole is filled.

LSI claimed it was the second largest PCIe flash card supplier after Fusion-io, and Seagate’s acquisition statement repeats that claim. It also says that the FCD business “is driving a multi-product roadmap to address volume markets.”

Seagate chairman and CEO Steve Luczo was cock-a-hoop:

“LSI’s ASD business has the broadest PCIe flash product offering and intellectual property in the market today and the FCD business has best-in-class SSD controllers with proven support for a wide range of applications. This acquisition immediately boosts Seagate’s range and depth of flash storage capabilities today, and these teams bring to Seagate the expertise to accelerate our roadmap in this important and growing market.”

The company can punt the Nytro and Sandforce product families out through its channels and so pump up their volume.

What Seagate doesn’t have is PCIe flash caching and storage memory software. We wouldn’t be surprised to see it pick up a supplier in this area to complete its PCIe flash card hardware and software offering.

Seagate expects at least $150 million in revenues in its fiscal 2015 from the two LSI flash operations. The acquisition is expected to closer in the third quarter of this year. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.