Mellanox MLNX recently announced the launch of a storage virtualization solution, NVMe SNAP (Software-defined, Network Accelerated Processing).
Notably, SNAP technology enables customers to create remote server-connected NVMe flash storage. Users can avail high-efficiency attributes of the remote storage platform, which virtualizes local physical storage infrastructure.
Also, users can avail robust data protection, advanced manageability and efficiency capabilities of local SSD in remote storage platform.
The expansion of company’s BlueField SmartNIC adapters’ portfolio with NVMe SNAP is in sync with growing demand for enterprise data storage requirements of flash storage arrays, virtualized and cloud datacenters. The latest solution, is likely to enable data centers to maximize return on investment (ROI) from the flash storage investments.
Mellanox is demonstrating NVMe SNAP technology at the 2019 Open Compute Project (“OCP”) Global Summit in San Jose, CA.
Coming to price performance, shares of Mellanox have returned 61.2% in the past year, substantially outperforming the industry’s rally of 5.8%.
Features & Benefits
NVMe SNAP combines BlueField’s robust platform comprising RDMA offload engines, multicore Arm processors and virtual switch. This accelerates software defined networking (“SDN”) storage processes, distributed file systems, de-duplication, artificial intelligence (AI), and many other cloud and enterprise computing applications.
The solution is expected to aid data centers in realizing cloud scale composability and storage disaggregation as required.
Furthermore, NVMe SNAP enables accelerated deployment of NVMe over Fabrics (NVMe-oF) across data center infrastructure by providing integration into data servers with any operating system or hypervisor.
Strength in BlueField Portfolio: A Key Catalyst
Mellanox is witnessing massive demand for BlueField (system-on-a-chip device) from the world's leading hyperscale cloud providers and storage companies.
The need to access and process data at a faster speed (25, 50 and 100 Gb/s) due to data growth in data centers is increasing demand for high-performance and efficient storage solutions.
Increasing bandwidth and growing capacity of data centers in this connected data-intensive era are other notable factors advancing the adoption of BlueField solutions. Further, SmartNICs utilized to virtualize and share flash storage make data centers more efficient.
To quote chief analyst at Futuriom, a market research firm, R. Scott Raynovich, “A SmartNIC like BlueField that can both virtualize flash storage and accelerate SDN has tremendous potential with cloud and large enterprise customers.”
In fact, Melaanox’s latest NVMe SNAP solution is already witnessing adoption. For instance, NVMe SNAP is enabling JD.com to devise “a composable infrastructure” which addresses the company’s growing storage needs."
E8 Storage aims to virtualize all-flash arrays like local NVMe storage across many of its server platforms with NVMe SNAP solution.
Notably, Excelero is optimistic about integrating its NVMesh storage solution with NVMe SNAP. This is anticipated to aid Excelero broaden the access of its NVMesh solution to wide range of hypervisors and operating systems.
Robust innovations in Mellanox’s Ethernet adapters, switches and cables are anticipated to bolster adoption further.
IDC forecasts that by 2025, the global datasphere will grow to 175 zettabytes (that is a trillion gigabytes), from 33 zettabytes in 2018. This exponential growth is expected to favor adoption of Mellanox’s interconnect solutions driven by growing demand for higher network speeds for fast processing of data.
Moreover, per ResearchAndMarkets data, the global data center storage market is projected to increase at a CAGR of 11.8% from 2018 through 2022. Per MarketsandMarkets report, the non-volatile memory market is projected to witness a CAGR of 9.5% to reach approximately $82 billion by 2022.
The aforementioned reports reflect robust demand for NVMe based cloud storage systems in data centers, which in turn strengthen the prospects of the latest solution.
Mellanox is benefiting from solid demand of its Gigabit EDR solutions in machine learning, artificial intelligence, high-performance computing, database and storage.
Further, robust demand for Mellanox’sInfiniBand solutions is a key catalyst. The company has also won several contracts from the likes of NetApp, the University of Toronto and NASA Ames Research Center, which reflects sturdy demand for its solutions.
Recently, NVIDIA NVDA announced the acquisition of Mellanox reportedly outbidding Intel INTC and Xilinx XLNX.The transaction is expected to be completed by the end of calendar year 2019.
Mellanox currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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