Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Western Digital Corp. (WDC): Well-Equipped to Face the Rising Competition

The success of information technology companies is driven by their ability to innovate. The benefits of moving first also stand to be the greatest in this industry. Some companies try to add to their service portfolio by acquiring other IT companies that possess differentiating products. The recent move by Western Digital Corp. (NASDAQ:WDC) to acquire VeloBit makes the company fall under this category.

How does the acquisition of VeloBit benefit Western Digital?

Western Digital Corp (NASDAQ:WDC)VeloBit is a private provider of breakthrough I/O acceleration technology and server density optimization. Western Digital Corp. (NASDAQ:WDC)intends to fully combine VeloBit with HGST, a wholly owned subsidiary of the company. The intended integration will assist in HGST’s journey to deliver value for datacenter storage via software utilization, to attain higher performance.

VeloBit is expected to increase storage system performance through more efficient usage of processor and storage resources. This is achieved through an added transparent acceleration layer that utilizes solid-state drives (SSDs) to boost performance.

Together with VeloBit’s SSD caching software, HGST will now be better equipped to supply corporations with low latency and high IOPS solutions for larger density. This purchase augments with Western Digital Corp. (NASDAQ:WDC)’s proposed sTec acquisition for HGST. It also highlights Western Digital’s eagerness to enter the enterprise SSD space. The current acquisition of VeloBit, along with the proposed purchase of sTec, should add to HGST’s technology standing and IP portfolio, with supplementary engineering and design resources.

Source: Western Digital Acquires VeloBit for Integration into HGST

Western Digital Corp. (NASDAQ:WDC) is currently implementing a strategy to enhance value of datacenter storage products on the whole. The acquisition of VeloBit is a partial way to achieve the company’s targeted goal.

VeloBit adds immense efficiency with five times higher number of desktops being run at three times lower the cost, while the average boot time would reduce by 11 times. This purchase has also increased the range of Western Digital Corp. (NASDAQ:WDC)’s service offerings in the high growth enterprise solid-state storage market.

Solid-state runs store data on microchips that command hard drives, rather than magnetic platters. They are usually thought of as faster and more dependable, though at an increased cost.

The acquisition is aimed at catering to the customers’ needs. This is planned to be achieved through tightly integrating storage optimization software with the hardware.

Where do competitors stand?

EMC Corporation (NYSE:EMC) also has its operations centered around developing and delivering information infrastructure and virtual infrastructure technologies, solutions, and services. EMC recently introduced a range of new products. The new data domain systems will provide four times more efficient performance.

It is expected to provide 27 times more scalability compared to rival companies. Customers will be able to remove storage silos by merging backup and archive data on one storage platform. Cloud backups will now be easier to scale and manage, utilizing the new features included in Mozy.

EMC Corporation (NYSE:EMC) also acquired privately held Aveksa. This will extend EMC’s RSA’s vision of Adaptive IAM. Its purpose is to convert traditional static systems into efficient and scalable “situational perimeters” to assist corporations in managing user lifecycles and access across corporate and cloud environments.

NetApp Inc. (NASDAQ:NTAP) is also a key player in the industry. The company looks forward to investing $15 million in ecosystem sales collaboration and technology integration with Microsoft Corporation (NASDAQ:MSFT) to speed up the implementation of corporate cloud deployments. The NetApp Partner Program supplements the company’s current offerings in the Microsoft Cloud OS Acceleration program.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.