Flash storage specialist Fusion-io is expanding its reach with the acquisition of NexGen for $114m, a maker of hybrid storage appliances that combine high capacity hard drives with Fusion-io's solid state technology.
The firm said it will enable it to target the SMB market with storage arrays that provide the performance of an all-flash array at a fraction of the cost. Fusion-io specialises in high-performance solid state storage hardware and software, but has recently seen delays in orders for some of its products from key vendor customers such as Apple.
The NexGen acquisition, for which Fusion-io paid approximately $114m in cash and approximately $5m in stock, broadens the firm's product line to target a broader range of customers, principally in the small-to-medium enterprise market.
"Many SMBs 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 like VDI and analytics," said Fusion-io chief executive David Flynn.
In addition, NexGen's current network of resellers will be added to the global Fusion-io reseller channels, the firm said. Gavin McLaughlin, solutions development director for hybrid storage vendor X-IO, commented that the acquisition validates the hybrid storage approach.
"Fusion-io's acquisition of hybrid flash/disk array vendor Nexgen Storage is further evidence that all-flash vendors are recognising the need to broaden their solutions portfolio and include a hybrid solution that delivers performance, price and capacity, to enable them to respond to customer demand," he said.
Daniel Robinson is technology editor at V3, and has been working as a technology journalist for over two decades. Dan has served on a number of publications including PC Direct and enterprise news publication IT Week. Areas of coverage include desktops, laptops, smartphones, enterprise mobility, storage, networks, servers, microprocessors, virtualisation and cloud computing.