Fusion-io (FIO) Pioneers I/O Flash Technology for Increased Cloud Computing Performance

February 14, 2013

Fusion-io (FIO) pioneered the flash storage architecture for increased input/output, staying ahead of the pack and tying all the growth drivers of data storage by speeding up performance in a cloud computing environment where Big Data continues growing unabatedly, says Andrew Nowinski, Assistant Vice President and Research Analyst at Piper Jaffray & Co.

“The larger data sets also create the need for better performance. That is where nonvolatile memory technologies such as SSDs, PCIe, NAND flash cards, and all-flash storage arrays come into play. Fusion-io is the pioneer of the space, but nearly every storage vendor, both public and private, is developing products for this market,” Nowinski said.

Nowinski says that 63% of CIOs are planning on increasing their data storage spending in 2013. He also says, however, that data storage stocks are volatile, with FIO drastically moving from the $30s to the midteens, then up and now down again, and some of FIO‘s largest customers delaying spending until the second half of the year.

Fusion-io delivered relatively in-line December quarter results, but they drastically reduced their FY13 outlook. This was a function of an unexpected slowdown at Apple(AAPL) and Facebook (FB), in which these two strategic customers deferred or delayed spending for about six months. Management does not expect this spending to resume until the September quarter,” Nowinski said.