Cray Takes Over Seagate ClusterStor Business

Cray Inc. signed a definitive agreement with Seagate Technology plc to complete a strategic transaction and enter into a partnership centered around the ClusterStor high-performance storage business.

Seagate ClusterStor L300

As part of the partnership, the two companies will collaborate on future ClusterStor products. Cray will continue to support and enhance the ClusterStor product line and to support customers going forward. Cray expects to add more than 100 Seagate employees and contractors and to assume certain customer support obligations associated with the ClusterStor product line.

“This partnership will be an exciting next step for Cray as we broaden our portfolio and expand our ability to create a leadership position in high performance storage products,” said Peter Ungaro, president and CEO, Cray. “Building upon our long-term strategy and the amazing growth of data, storage is becoming more important in our market. With the push to exascale computing and the explosive growth in artificial intelligence, deep learning and analytics, the ability to integrate compute and storage into supercomputing systems is more critical than ever.“

“Adding Seagate’s ClusterStor product line to our DataWarp and Sonexion storage products will enable us to provide a more complete solution to customers,” continued Ungaro. “Current ClusterStor customers and partners can be assured that we will continue to advance and support the ClusterStor products. In addition, I look forward to welcoming our new Cray employees along with the ClusterStor partners and reseller channel – strengthening our strategic positioning for growth into the future.”

“In 2012 Cray became our first OEM and has continued over the years to be our largest and most strategic ClusterStor partner. Today’s announcement is really the perfect evolution of that continuing, special partnership in HPC,” said Ken Claffey, VP and GM, storage systems group, Seagate. “As the leader in the supercomputing market, Cray will be a great home for the ClusterStor, employees, customers and partners.“

Highlights of the transaction and partnership include:
· Seagate’s existing ClusterStor Lustre, Secure Data Appliance and Spectrum Scale customers will be able to receive service and support from Cray.
· Cray expects to add more than 100 employees, primarily in R&D, customer service and channel and reseller support.
· The two firms will collaborate to incorporate the latest Seagate technology into future ClusterStor and Cray Sonexion products.
· Cray will receive certain assistance from Seagate to provide support on existing service contracts.
· The transaction closing is expected to be completed late in the third quarter of 2017.
· Cray expects the net impact of the transaction for Cray to be in the range of breakeven for 2018.

Note: For its more recent second financial quarter ended June 30, 2017, Cray recorded revenue of $15.7 million in storage and data management, to be compared to $25.0 million for the same period one year ago. Fot 1H17 the number is $31.3 million vs. $38.4 million in 1H16.