Motherboard manufacturer merger mayhem

Subject: General Tech | September 28, 2012 - 02:00 PM |
Tagged: purchase, merger, asus, asrock

The news from DigiTimes yesterday that Haswell will take even more features away from the motherboard and place them on the CPU signalled a problem for second and third tier manufacturers was worrying.  With less and less features being available for motherboard manufacturers to use to distinguish their products the market becomes less profitable for those boards which can't afford the additional costs incurred by including Thunderbolt or other high end features.  That could well spell the end of several current motherboard manufacturers.

If that wasn't enough to worry you about the possibility of having less choice in system parts in the future, how about the news coming out of SemiAccurate that ASUS is looking to purchase ASRock's motherboard business.  If that was to occur ASUS would own a huge portion of the first tier of motherboards and swamp Gigabyte with the volume they could produce.  At the same time they could leverage ASRock's lower cost motherboard business and compete with the second tier motherboard manufacturers.  With the competition being so fierce and the added features being so limited, at least for Intel boards, the third tier would not have a snowballs chance in the market and would collapse except for a few custom boards for niche markets.   Not the best news for enthusiasts or cost conscious consumers.

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"Currently word has it that an offer has been made for Asrock, and Pegatron is essentially fine with the terms. This would take the #1 and #3 mobo makers and combine them, leaving the industry with one massive behemoth, one solid player, and a lot of minnows struggling to make waves. As of now, there is a first tier of Asus and Gigabyte, then Asrock, MSI, and ECS at less than half of that volume, plus a few niche players in the motherboard market."

Here is some more Tech News from around the web:

Tech Talk

Source: SemiAccurate

SandForce jumps into bed with LSI, not OCZ

Subject: Storage | October 27, 2011 - 02:57 PM |
Tagged: LSI, sandforce, merger, purchase

LSI, known for their high quality RAID cards here at PC Perspective have just agreed to purchase our favourite designer of  SSD controllers, namely Sandforce.  The deal is for $322 million in cash, with another $48 million of unvested stock options and restricted shares also being picked up.  This deal makes an interesting pair of bedfellows, with Sandforce being well known by consumers but making few inroads into the server room or other corporate markets.  LSI is the opposite, with very few consumers running out and picking up a $700 SAS RAID controller while in the corporate environment they are a common purchase. 

The two markets are very different; consumers want both speed and affordability in a drive and are quite willing to sacrifice a little reliability to that end.  Corporate usage places reliability first, there is no point having incredibly fast storage medium if it is occasionally unreachable and so are willing to pay a high price for that reliability.  This purchase seems to be indicating that SandForce feels that there is a market for their controller in the corporate world, if they can overcome the reliability and MTBF of their SSD drives.  LSI can provide experience with that in spades, their testing methodology is capable of detecting and pinpointing flaws that a consumer would never notice but which a heavily loaded server might.  This might just see SandForce arrive as a controller in a server room near you.  Keep your eyes peeled for more information from Allyn.

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MILPITAS, Calif., October 26, 2011 – LSI Corporation (NYSE: LSI) today announced that it has signed a definitive agreement to acquire SandForce, Inc., the leading provider of flash storage processors for enterprise and client flash solutions and solid state drives (SSDs). Under the agreement, LSI will pay approximately $322 million in cash, net of cash assumed, and assume approximately $48 million of unvested stock options and restricted shares held by SandForce employees.
 
SandForce’s award-winning products include flash storage processors at the heart of PCIe flash adapters and SSDs. Flash storage processors provide the intelligence required to deliver the performance and low-latency benefits of flash storage in enterprise and client applications. With market-proven, differentiated DuraClass™ technology, SandForce flash storage processors improve the reliability, endurance and power efficiency of flash-based storage solutions.
 
The acquisition greatly enhances LSI's competitive position in the fast-growing server and storage PCIe flash adapter market, where the WarpDrive™ family of products from LSI already uses SandForce flash storage processors. The complementary combination of LSI’s custom capability and SandForce’s standard product offering propels LSI into an industry-leading position in the rapidly growing, high-volume flash storage processor market space for ultrabook, notebook and enterprise SSD and flash solutions.
 
“Flash-based solutions are critical for accelerating application performance in servers, storage and client devices,” said Abhi Talwalkar, LSI president and chief executive officer. “Adding SandForce’s technology to LSI’s broad storage portfolio is consistent with our mission to accelerate storage and networking. The acquisition represents a significant, rapidly growing market opportunity for LSI over the next several years.”
 
Michael Raam, SandForce president and CEO, said, “The combination of SandForce and LSI allows us to deliver differentiated solutions in the PCIe flash adapter segment by tightly integrating flash memory and management. In addition, leveraging our flash storage processors with LSI’s comprehensive IP portfolio and leading-edge silicon design platforms will lead to innovative solutions.”
 
The transaction is expected to close early in the first quarter of 2012 subject to customary closing conditions and regulatory approvals. Upon closing, the SandForce team will become part of LSI’s newly formed Flash Components Division, with Raam as general manager.

Source: LSI

OCZ Technology Acquires UK Design Team from PLX Technology

Subject: General Tech | October 5, 2011 - 05:35 PM |
Tagged: ssd, plx, ocz, merger, acquisition

SAN JOSE, CA—October 5, 2011—OCZ Technology Group, Inc. (Nasdaq:OCZ), a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems, today announced it has signed a definitive agreement to acquire the UK Design Team and certain assets from PLX Technology, further strengthening the company’s global research and development team.

PLX’s UK Design Team has built a reputation for designing innovative and reliable system-on-chip (SOC) solutions and the acquired engineering team’s expertise provides OCZ with additional resources for controller design. Through the acquisition of the engineering team and the license of intellectual property (IP), OCZ will be able to accelerate solid state drive development, reducing its time to market for next generation SSD products, while also reducing development costs.

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“We are pleased to augment our engineering organization with the UK Design Team as they have been providing best of breed system-on-chip designs, software, and firmware since 1992,” said Ryan Petersen, CEO of OCZ Technology. “We believe the additional engineers along with the access to increased IP resources will enable us to significantly reduce the costs associated with storage protocol licensing, while simultaneously speeding our time to market.”

Pursuant to the agreement, OCZ will among other items acquire from PLX access to substantial IP and the UK Design Team, which consists primarily of approximately 40 engineers located in Abingdon, United Kingdom. PLX will retain their existing line of products which they will continue to support and supply to their customer base, and any patents related to the technology, for which OCZ will receive a perpetual license. The acquisition is subject to the satisfaction or waiver of various closing conditions.