NetApp Buys LSI Engenio External Storage Systems Business


After today’s markets’ close NetApp announced the purchase of LSI’s Engenio External Storage Systems Business for $480million in cash.The motivation behind this is that NetApp needed a high speed solution primarily for very high throughput (both bandwidth and IOPS) applications such as multi-stream video capture and playback as well as high-performance computing (HPC) applications. Also, NetApp ‘s V-series is already certified to run in front of the Engenio products but it remains to be seen if Data OnTap will be ported to the new LSI line after the deal closes (my sense is that this would not be a quick integration if it did happen.)

Headcount is estimated at around 1,100 people that will be transitioning to NetApp to support the ongoing business.

This merger should have no effect on LSI’s storage controller business.

Feel free to discuss the merger on the Forums!

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