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Cisco Finds a Storage Partner in Israel, Invests in Elastifile

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Cisco Systems, Inc. (CSCO - Free Report) has a made a strategic investment of $15 million in Israeli all flash storage software developer, Elastifile.

The Herzliya-based startup has developed an all-flash, software-defined storage (SDS) solution that offers cloud scale capacity to large and mid-size enterprises.

Per Elastifile, this technology can expand through thousands of physical nodes and provide millions of input/output Operations per Second (IOPS) with latency of under 2 milliseconds. It supports VMware vSphere, OpenStack/KVM and Linux containers.

It appears that Elastifile’s success so far is good enough to lure a computer communications giant like Cisco.

According to Amir Aharoni, CEO and co-founder of Elastifile, Cisco’s investment underscores how well Elastifile has done in redefining software-defined storage, making it capable of providing enterprise-grade performance at cloud scale.

How is Cisco Poised to Gain?

The deal is undoubtedly a step up for Cisco to gain a stronghold in cloud. It appears that the company has well understood that SDS and SDN are going to shape the future of cloud computing.

It seems that with this investment, Cisco is eyeing the development of object storage and flash storage solutions that will give it an early advantage in the storage industry.

Benefits for Elastifile

The deal appears to be more than just an opportunity to work with the world's largest IT networking provider. The company plans to use the additional funds to aggressively market its new technology, the adoption of which will enable customers to deploy more applications on flash.

Currently, Cisco is a Zacks Rank #3 (Hold) stock. 

Some better-ranked stocks in the wider technology sector include CommVault Systems, Inc. (CVLT - Free Report) , Netgear Inc. (NTGR - Free Report) and Radcom Ltd. (RDCM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

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