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» VIEW ALL POSTS Nov 3 2011   4:26PM GMT

Fusion-io CEO: EMC’s Project Lightning will cost too much



Posted by: Dave Raffo
Tags:
fusion-io
PCIe flash
Project Lightning
solid state storage

Fusion-io showed there is a hunger for server-based PCIe solid-state drive (SSD) accelerator cards by beating Wall Street estimates for sales last quarter, and CEO David Flynn said he’s not worried about EMC cutting into his success when the storage vendor comes out with its server-based flash product.

EMC has been touting its Project Lightning product since May. The product is in beta and expected to become generally available next month. But Fusion-io’s Flynn maintains putting flash in the server alongside high performance storage arrays is too expensive for widespread adoption.

“EMC is trying to make it additive to its existing business,” Flynn said during the vendor’s earnings conference call Wednesday night. “It’s relegated only to customers willing to pay an additional premium for performance on top of the premiums they already pay [for storage arrays].”

Flynn said using Fusion-io cards in servers allow customers to boost performance without using high-end storage arrays, keeping costs down. EMC obviously wants to continue selling storage arrays alongside servers with PCIe flash. Flynn questioned how many EMC storage system customers will want to pay for another flash device.

“We believe this isn’t about higher performance storage at yet a higher cost,” Flynn said. “This is about bringing cost way down. We believe customers will not pay twice, especially if the performance is solved out front. Instead, they will gravitate to lower cost solutions.”

He said Fusion-io’s IO Turbine software will let organizations get many of the storage management benefits of Project Lightning without EMC arrays.

Fusion-io, which became a public company with an IPO in March, reported revenue of $74.4 million and net income of $7.2 million for last quarter. That compares to $27 million in revenue and a $5.8 million loss a year ago when it was a private company. Fusion-io’s forecast for last quarter was in the $60 million to $65 million range.

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