The Market Consolidation Continues

Market consolidation – it’s a common occurrence within the technology space and happens all the time, albeit less often in the past few years. It would appear this week is no exception and LSI Corp. was acquired by Avago this week.

To many, this won’t seem like much as neither are brands that are regular house hold names, however, in the storage space, both organizations are significant. LSI in particular is a company WinMagic has worked with for quite some time.

Some may recognize LSI from our TCO of Encryption with Self Encrypting Drives study we published earlier in the year in which LSI was a sponsor. While they’re not a maker of SEDs themselves, much of their technology is in the ‘nuts and bolts’ of some of the many SEDs available in market today.

It will be interesting to see where this deal goes as Avago makes semiconductors used by OEMs like Samsung and Apple and LSI has deep roots in the enterprise storage business. From a data encryption perspective, LSI’s work with TCG’s OPAL specification most certainly could lead to more standards adoption by those vendors in the future in some of their hardware.

Ulitimately where it leads, only Avago knows. However, there are some exciting possibilities for the future with this deal as it relates to enterprise storage and semiconductor integration.

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