Western Digital to exit storage systems business

Western Digital agreed to sell its IntelliFlash business to DDN, a global leader in artificial intelligence (AI) and multi-cloud data management. Under the deal, DDN also will increase its purchase of Western Digital’s HDD and SSD storage devices.Financial terms were not disclosed.

Western Digital said the sale reflects its strategic intention to exit Storage Systems, which consists of its IntelliFlash and ActiveScale businesses. The company is exploring strategic options for ActiveScale. These actions will allow Western Digital to optimize its Data Center Systems portfolio around its core Storage Platforms business, which includes the OpenFlex™ platform and fabric-attached storage technologies.

“As we look to the future, scaling and accelerating growth opportunities for IntelliFlash and ActiveScale will require additional management focus and investment to ensure long-term success,” said Mike Cordano, president and chief operating officer. “By refocusing our Data Center Systems resources on our Storage Platforms business, we are confident that the Western Digital portfolio will be better positioned to capture significant opportunities ahead and drive long-term value creation.”

“DDN has deep technical expertise and capabilities in high performance and at scale data environments, and is well positioned to build on and accelerate the success of the business,” said Phil Bullinger, senior vice president & general manager of the Data Center Systems business. “Importantly, both Western Digital and DDN are aligned in our commitment to executing a smooth transition for all stakeholders. Western Digital will remain one of the largest consumers of IntelliFlash products, and customers will continue to receive best-in-class service and support.”