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  • EquityRich EquityRich Jun 9, 2011 10:00 AM Flag

    Fusion IPO

    There will be huge competition in this area. Fusion IO's pricing is incredibly high for its cards. I see Intel/Micron, OCZ and others chewing away and commodotizing this area very quickly.

    When this happens prices will erode for the products faster then unit growth and thus top line revenue will decelerate.

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    • OCZ is the real play

    • Agreed others are on heels of Fusion-IO in using PCIE-SSD and will commoditize creating competition and squeezing margins in that space. However, I think Fusion-IO is still one step ahead and on the leading edge of leveraging PCIE SSD performance in high-speed networks via Infiniband which is now supporting 56Gbps throughput with the framework to go to 300Gbps soon. The real revenue opportunities are going to be via partners selling the technology as well as large engagements, including defense, counter-terrorism, and real-time financial analysis systems. The max capability of a SATA III bus is 6Gbps and local PCIE has practical limitations plus doesn't provide for failover. Moving to the SAN model and leverage of ISCSI will accelerate adoption of this for enterprise data-centers. For an example, see
      The days of huge EMC Storage Towers with hundreds of mechanical disks are coming to an end. The new model will be flash-based. The enterprise storage vendors like EMC will start embracing flash for several reasons.
      Faster throughput is not the only thing driving flash-storage, the energy economics as well as the capability to store more in smaller physical space are additional drivers. The costs are going down faster than costs for spindle storage and will overtake in a few years just as LCDs eventually overtook CRTSs.

      • 2 Replies to bobdark4925
      • I have been closely reviewing Fusion-io for months once I heard about the IPO. Based on their lead, leading edge customers (Facebook, Apple, Dell, HP, etc.) and the software that goes with their PCIe SSD hardware I believe this company is going to thrive. Facebook choosing Fusion-io for their data center sets the reference implementation for other cloud data centers, etc.. Given this is the fist storage area IPO since 2007 and the bidding war for 3Par I would say Fusion-io is a very strong candidate to be acquired for their Intellectual Property,and leading in this very hot area.. It probably will not be long before they are scooped up for a nice return on today's IPO price.

      • I like the comparison to LCDs over CRTs

        However, I don't agree that Fusion-IO is a step ahead

        Buy OCZ for the higher upside