Fusion-io has acquired SMB-focused hybrid storage appliance maker NexGen Storage for approximately $114 million in cash.
NexGen already uses the flash-based storage vendor's ioMemory technology to create hybrid storage appliances containing standard disk drives that are aimed at SMBs.
This setup, the company claims, allows NexGen to transform x86 server platforms into systems that boast the same kind of performance as an all-flash storage array.
In a statement, Fusion-io said the acquisition will help the firm make further inroads into the SMB market, and enable it to expand its product portfolio.
The deal will also see Fusion-io take on 50 of NexGen's staff.
David Flynn, chief executive and chairman of Fusion-io, said adding NexGen's technology to its product portfolio means it can offer SMBs an affordable way to run flash-powered applications.
"With this acquisition, we will maintain the current NexGen product model as we transition to supporting customers' preferred server platforms with our OEM partners," added Flynn.
Gavin McLaughlin, solutions development director at rival flash storage vendor X-IO, said the acquisition comes as little surprise to him.
"It is further evidence that all-flash vendors are recognising the need to broaden their solutions portfolio and include a hybrid solution that delivers performance, price and capacity, to enable them to respond to customer demand," he said.
The reason for this, he claimed, is because users are starting to realise that all-flash arrays are good for sorting out IO bottlenecks, but are not necessarily faster or cheaper than hybrid versions.
"Whilst NAND flash is an extremely useful tool in a storage vendors' portfolio, a true balance of cost, risk and growth can only be achieved through blending enterprise grade solid state and enterprise grade hard disk drives," he added.
"This acquisition further supports the mind shift in the market towards a more balanced approach."
News of the acquisitions comes just over a month since Fusion-io acquired UK-based open source software vendor ID7.
