SanDisk Corporation (SNDK) Has Big Plans With $1.2 Billion Fusion-io Acquisition

It all began as rumors then SanDisk Corporation (NASDAQ:SNDK) announced a plan to buy Fusion-io at $1.2 billion about two months ago. This acquisition came at a time when Fusion-io wasn’t doing very well in the market, making the sale a breakthrough to the company owners.

According to an article by Gigaom, the deal has been approved by the boards of both firms and now what remains to be seen is how SanDisk Corporation (NASDAQ:SNDK) will transform the company into a cash cow.

SanDisk has been on an acquisition drive, having acquired four companies since 2011. The companies are SMART Storage Systems, Schooner Information Technology, FlashSoft and Pliant Technology.

SanDisk Corporation (SNDK)

With their new purchase, a question that lingers is how SanDisk Corporation (NASDAQ:SNDK) is going to change tact to capture a bigger market through a company that has been relying heavily on partnerships with premium buyers such as Apple and Facebook.

In an elaborate read, re/code has indicated that The executive VP and chief strategy officer of SanDisk Corporation (NASDAQ:SNDK), Sumit Sadana, clarified that the company wanted to take advantage of the growing cloud computing technology that requires serves where users can store and retrieve information faster.

“Four years ago, we realized the world was changing around us,” Sadana says. “We saw that cloud computing was going to be an important business driver for us in the data center. We decided to reposition ourselves not just as the top brand for flash storage in the consumer world, but for storage, period.”

SanDisk is therefore going to use its existing network and reputation in the flash industry to provide solutions and to reposition Fusion-io as a leader in the enterprise.

“So what’s the goal? Before the Fusion deal, the combined value of the existing enterprise flash business plus solid state drives sold to PC makers amounted to about 29 percent of revenue, Sadana says. “After the Fusion acquisition, we think we can get there by 2015.”

Another area that SanDisk will expand is Fusion-io’s software capabilities. Software currently provided by Fusion-io is super-fast when running on systems that have the company’s cards on their motherboards. In a bid to expand the market, SanDisk will make it possible that the software runs fast with flash from other companies as well.

This article has been written by Victor Ochieng.

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