Feeds

Seagate's LSI flash biz buyout: Good potential, but only if followed up

Is this a good buy or is it goodbye?

Security for virtualized datacentres

Comment Will Seagate's buyout of LSI's old flash card business, which it snapped up from Avago and Xyratex, flourish or wither away inside the Californian conglomerate?

Upfront, these are smart buys by Seagate, extending its target markets. Xyratex ClusterStor arrays can use its 6TB drives and their follow-on products, and the HDD manufacturing treat equipment side is a nice extra.

The LSI flash card business acquisition from Avago gives it a solid introduction into the server flash card market and at half the price of Fusion-io. Seagate absolutely has to forge a NAND chip supply deal with Samsung. That would make it stronger than WD, in that regard, which lacks a flash foundry chip supply deal as far as we know.

WD’s management must surely know about the strategic imperative to strike flash fab output supply deals – and if they know about it, they need to be doing something about it.

Seagate is seeing ClusterStor possibilities with its EVault subsidiary. Which is good, but consider this...

PCIe flash cards are storage components while ClusterStor arrays are systems, complete and ready to run and bought by end-users. Seagate knows about selling components to OEMs and also to consumer/SMB via a retail channel. It’s bumping up the SMB/prosumer/consumer small drive array business – but it isn't in the general business disk array business and knows squat about selling array systems to enterprises.

Xyratex takes it into the supercomputer/HPC disk array business which is quite high margin and specialised. However there are existing suppliers who now face competition from a disk component vendor they may have been using.

Will NetApp with its E-Series HPC arrays want to populate then with Seagate drives now Seagate ClustertStor is competing with the E-Series? Ditto DataDirect Networks and its disk arrays and Panasas with its PAS arrays. There is scope for channel conflict here, with WD and Toshiba picking up extra disk drive business.

Seagate also has to learn how to sell high-end arrays, but Xyratex has its existing sales force and channels. Seagate also has to decide whether to extend its offering outside the supercomputing/HPC market, meaning downwards into general business arrays. My reading of the situation is that it won't go there, because that market is threateners by commoditisation and the cloud.

Overall Seagate has, with these two deals bought itself two platforms for significant market expansion. Both Xyratex and the LSI flash card business should flourish. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
VMware's tool to harden virtual networks: a spreadsheet
NSX security guide lands in intriguing format
prev story

Whitepapers

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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.