Flash Storage is hot! Cisco and Western Digital to Acquire SSD Companies

Hosting Journalist already noticed that hosting providers are tending to buy more and more of Solid State Drive (SSD) modules for integration into their hosting infrastructures. Current flash storage acquisitions by Cisco and Western Digital do confirm our thoughts on the fact that, right now, the market for flash storage is a booming market.

It was only a few years ago that  flash storage was still quite expensive. At the moment, the advantages seem to transcend the cost hurdles of the technology. Flash storage offers increased application performance and optimization solutions for virtualization, database, and cloud computing. The announced acquisitions by Cisco and Western Digital will extend both company’s presence in the SSD market, which IDC predicts will grow from $2.5 billion in revenue in 2012 to $7 billion in revenue by 2017.

WHIPTAIL and Virident

Actually it is HGST, a wholly owned subsidiary of Western Digital that will do the acquisition. HGST will acquire Virident, a fast growing flash storage company in the segment of enterprise and cloud computing. Virident solutions enable enterprises to tackle performance-intensive datacenter applications with PCIe-based enterprise flash storage solutions for virtualization, database, cloud computing, and webscale applications. Virident will be acquired for approximately $685 million in cash.

Cisco-Unified-Computing-System-UCS
Cisco’s Unified Computing System (UCS)

Cisco has announced its intent to acquire privately held WHIPTAIL, a supplier of high performance, scalable solid state memory systems that enable organizations to simplify data center and virtualized environments and process more data in less time. WHIPTAIL will strengthen Cisco’s Unified Computing System (UCS) strategy and enhance application performance by integrating scalable solid state memory into the UCS’s fabric computing architecture. Cisco will pay approximately $415 million in cash and retention-based incentives in exchange for all shares of WHIPTAIL.

Closing of the Virident acquisition, which is subject to customary conditions is expected to occur in the fourth calendar quarter of 2013. The acquisition of WHIPTAIL, also subject to customary closing conditions is expected to be complete in the first quarter of fiscal year 2014.