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August 29, 2017

Western Digital buys flash firm Tegile Systems

Acquisition comes just a day after Western Digital moved into cloud with its Upthere buy.

By Ellie Burns

Flash storage firm Tegile Systems is set to be acquired by Western Digital for an undisclosed amount.

Announced today, the acquisition will see Western Digital gain 1,700 new customers and an expansive product portfolio destined for its Data Centre Systems (DCS) business.

Combining Tegile’s IntelliFlash products, which are focused on fast data, with Western Digital’s ActiveScale products, which are focused on big data, will enable Western Digital to help businesses harness the value of their data.

“The Tegile acquisition will fit perfectly in Western Digital’s long-term strategy to deliver high value solutions that address customers’ rapidly evolving storage needs,” said Mike Cordano, president and chief operating officer of Western Digital.

“The addition of Tegile’s technology and talented team will advance our goal of solving customers’ most significant challenges in capturing, preserving, transforming and accessing data. We welcome the Tegile team to Western Digital and look forward to working together to enhance our leadership position in enterprise and cloud-based storage.”

Western Digital is no stranger to Tegile Systems, having been a major investor in the flash storage firm’s funding rounds. Tegile has raised $178 million in venture funding, with $33 million recently raised in a round led by Western Digital.

“We are excited to add this team of deeply experienced storage professionals to Western Digital,” said Phil Bullinger, Western Digital’s senior vice president and general manager of the DCS business unit.

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“Not only will we gain an exceptional group of team members, but also expand our product offerings in the fast-growing solid-state and hybrid array segments. By combining Tegile’s innovative storage system software with Western Digital’s global scale and combination of components and systems, we expect DCS to capture a sizable share of flash array demand. Western Digital is focused on the systems business and this is a significant step forward in advancing our long-term strategy.”

The Tegile acquisition comes just a day after Western Digital made a move into cloud, with the firm announcing that it had acquired cloud services company Upthere. Western Digital is also in the running to buy Toshiba’s $17.4 million chip business, leading a consortium of companies looking to purchase the business.

Rohit Kshetrapal, chief executive officer of Tegile said, “Western Digital has been a key partner and long-term investor in Tegile and has already enhanced various aspects of Tegile’s business, including engineering integration, HDD/SSD supply chain efficiencies, go-to-market efforts and customer support.

“Both Tegile and Western Digital have introduced industry-changing storage products. The Tegile team looks forward to continuing this tradition of innovation as part of the Western Digital family.”

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