On June 16, 2014, the Wall Street Journal reported that SanDisk has agreed to buy Fusion-io in an all cash deal.
Since Fusion-io’s announcement of its intention to go public, Neuralytix has predicted that Fusion-io operating as an independent company would be short-lived. That said, Neuralytix believed at the time that the likely acquirer would be IBM.
Fast forward to today. SanDisk has been slowing buying up solid-state/flash related technologies and companies. Notable acquisitions include SMART Storage Systems, and Pliant Technology, both flash related companies focused on the enterprise rather than a consumer audience.
The addition of Fusion-io to SanDisk’s portfolio now gives SanDisk a complete portfolio of form factors – from DIMM, to PCIe to disk drive. Neuralytix believes that SanDisk should expand its top-end with an all-flash array in the near future.
Flash has become a game-changing technology of late. With the plethora of software solutions available at very reasonable rates to “rent” (Software-as-a-Service) or to buy, the race to gain competitive advantage now comes down to time. Those who have the highest performing platforms are likely to take an early-mover advantage. Flash enables this to happen.
Neuralytix believes this decision by SanDisk is part of an extremely well thought out strategy. Its purchase of Fusion-io represents a nearly 20% discount to the $1.48 Bn valuation Fusion-io had when it first went public.