Chip-making company LSI Corp. ( LSI ) recently signed
an original equipment manufacturer (OEM) agreement with the
chip-giant Intel Corp. ( INTC ). Per the
agreement, Intel will use LSI's Nytro MegaRAID for its redundant
array of independent disks (RAID)-based server solutions.INTEL CORP (INTC): Free Stock Analysis ReportLSI CORP (LSI): Free Stock Analysis ReportNETAPP INC (NTAP): Free Stock Analysis ReportSEAGATE TECH (STX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
LSI Nytro MegaRAID is a type of PCIe (Peripheral Component
Interconnect Express) Flash Adapter that allows servers and storage
systems to store frequently-used data in flash memory, thereby
enabling faster access and better performance.
LSI's flash technology reduces latency (input/output processing
time) and boosts application performance by converting server-based
flash into a high-performance cache for processing critical
business applications faster.
Intel will integrate the Nytro MegaRAID technology within its RAID
SSD Cache Controllers, RCS25ZB040 and RCS25ZB040LX. The technology
will help Intel to provide its server customers with very high
levels of random IOPS (Input/Output Operations Per Second)
performance for managing databases and Big Data applications,
implementing Hadoop (a free, Java-based programming framework that
supports the processing of large data sets in a distributed
computing environment) and virtual desktop infrastructure
Last month, LSI's Nytro WarpDrive PCIe flash cards were selected
by storage solutions provider NetApp Inc. ( NTAP ). The flash card
will be used with NetApp's Flash Accel software.
The non-volatile, shock resistant, high-speed and relatively power
efficient nature of flash technology has made it popular as an
economic storage solution. Enterprises are opting for flash
technology even for their data centers to drive efficiency and
lower information technology (IT) maintenance costs. Within flash
technology, demand for PCIe-based flash card is gaining traction,
mainly because of low latency and better productivity. The growing
demand for PCIe-based flash solutions has prompted players such as
STEC Inc., Fusion-io Inc., Marvell Technology plc and
Seagate Technology plc ( STX ) to increase their
exposure in this space.
LSI's position in providing PCIe flash solution seems to be strong
given its close associations with NetApp and Intel. The company
solidified its position in the PCIe space with the acquisition of
SandForce Inc. in Jan 2012. SandForce broadened its product range
and provided access to Ultrabook, notebook, enterprise SSD and
LSI Corp. delivered decent fourth quarter results with the top and
bottom lines exceeding the Zacks Consensus Estimates. The
continuing macro uncertainty and dwindling PC market prompted the
company to provide a sequentially weak guidance.
Currently, LSI has a Zacks Rank #3 (Hold).