Mellanox Technologies, Ltd. (NASDAQ:MLNX) is cashing in thanks to its rapidly growing customer base that has been facilitated by strategic partnerships.
The company has been selected for partnerships by major companies in the semiconductor and cloud computing industry. Some of these companies include Hewlett Packard Enterprise Co (NYSE:HPE), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Alibaba Group Holding Ltd (NYSE:BABA) among others. Such collaborations have contributed to great success for Mellanox due to an expanded customer base. It has managed to achieve these partnerships thanks to its impressive product portfolio.
Research company IDC speculates that the global data sphere will be roughly 1 trillion gigabytes which is ten times more than the amount of data generated last year. This means there will be more growth opportunities for firms such as Mellanox. The latter will thus experience more demand for its interconnect solutions due to the demand for higher processing of data as well as higher speeds.
HP recently selected Mellanox’s Spectrum Ethernet Switch to power the StoreFabric M-series storage networking switches, thus proving just how good the Mellanox solution is. Spectrum is the most efficient and fastest storage network that is available for enterprise and cloud and it is part of the Ethernet Storage Fabric (ESF) solution.
“Mellanox’s products are gaining rapid adoption, which is evident from Alibaba’s deployment of 25GbE and 100GbE ConnectX-4 EN family of Ethernet adapters in its data centers,” stated a recent report.
The collaborations with companies such as HP and VMware has also contributed significantly to the growing demand for the interconnect solutions. This is because it has helped the company to secure a bigger footprint in the data center and cloud market. The company has teamed up with VMware to combine vSphere with the iSER (iSCSI Extensions for Remote Direct Memory Access) networking solutions. iSER runs on a an Ethernet Storage Fabric solution for storage and computation to provide a unified solution. These partnerships are expected to continue increasing over the next few years as the demand for more computing power and storage increases.
Mellanox stock closed the latest trading session on Friday at $47.15.
