Fusion-io to buy IO Turbine to reach virtualized servers

The $95 million deal will bring Fusion-io software to make flash-based cache work on virtualized servers

Flash storage vendor Fusion-io has agreed to buy IO Turbine for up to $US95 million to extend its on-server cache products to virtualized environments.

IO Turbine provides software that allows cache storage on servers to be shared across multiple virtual machines. The software will complement Fusion-io's flash products, which use solid-state storage media as a cache for heavily used data in order to minimize the amount of data that has to travel over storage networks. Fusion-io's components have so far been limited to use with data-intensive applications in non-virtualized environments, Fusion-io Chairman and CEO David Flynn said Thursday.

"It doubles the addressable market for server-attached flash," Flynn said. "Now, there's not an application out there that can't benefit from Fusion-io."

Fusion-io will pay as much as $95 million in cash and stock for IO Turbine, subject to purchase price adjustments, with the cash portion not to exceed $35 million. The deal is expected to close by the end of this month. Fusion-io, based in Salt Lake City, will add about 20 employees from IO Turbine to its engineering team and about five other employees across the rest of the company. IO Turbine is based in San Jose, California.

It's a hefty purchase for Fusion-io, which went public in June, raising $218.9 million. But it should help the company tap into one of the biggest trends in enterprise computing and could help to expand use of the data acceleration technique that Fusion-io pioneered. At the same time, competition is starting to heat up in this category. Also on Thursday, SSD (solid-state disk) vendor STEC announced server-attached flash products and a related software platform that it said can be used with any vendor's SSD. On Tuesday, OCZ introduced its latest line of server-attached flash components.

Fusion-io's Flynn downplayed the significance of STEC's introduction, saying that Fusion-io's products benefit from vertical integration of software, hardware and other elements. The effect is similar to that achieved by Apple, he said. Apple co-founder Steve Wozniak is chief scientist and a board member at Fusion-io.

In its first quarterly financial report since going public, Fusion-io reported revenue of $71.7 million in its fiscal fourth quarter ended June 30, up 556 percent from $10.9 million a year earlier. Net income was $5.8 million or $0.06 per share, compared with a net loss of $11.9 million or $1.00 per share a year earlier. For the current quarter, the company forecast revenue of $60 million to $65 million, down from the previous quarter because of the timing of a few large deals, Flynn said. The latest forecast was adjusted up from the company's earlier estimate for the quarter, he said.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags SSDDrivesstorageFusion-ioIO BridgeStorage Management

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?