Western Digital investing $51M in solid-state storage maker Skyera

Summary:Western Digital's investment arm has made a significant strategic investment in enterprise solid-state storage provider, Skyera.

Western Digital Capital, the investment arm of the hard drive giant, has revealed that it is pouring approximately $51 million into enterprise startup Skyera.

See also: Seagate declares itself first company to ship 2 billion drives worldwide

Having previously funded Skyera as the initial outside investor, Western Digital Capital co-invested in the series B round as the two storage solutions makers enter into a joint agreement.

While it wasn't revealed as to exactly what technology the two businesses are going to develop together, it will likely build upon Skyera's enterprise solid-state storage systems.

For example, Western Digital pointed towards Skyera’s skyHawk solid-state storage, which is priced at "an industry breakthrough price point" of less than $3 per gigabyte.

The launch of skyHawk reportedly marks the first time that the latest generation of 19/20nm solid-state technology can be used as a direct replacement for traditional enterprise hard disk-based systems, according to the announcement.

Western Digital president and chief executive officer Steve Milligan did specify in prepared remarks that one of the primary goals for this deal is to build "highly optimized storage solutions" to meet changing data management needs.

Milligan also suggested that solid-state options from companies such as Skyera offer "a dramatic improvement over traditional approaches to emerging storage challenges."

Topics: Hardware, Enterprise 2.0, Start-Ups, Storage, Tech Industry


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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