LSI offensive strategy creates new growth
The trend we are seeing is that data and traffic are increasing rapidly, and the storage and transfer of data has become an urgent demand in the market. LSI is the only company that uses storage and network technology as its core product and can provide all related chips and products ... .... There are some very good companies in the storage field, but their products only compete with us in a certain field.
Abhi Talwalkar, CEO of LSI
"This is the best time"-if, at the end of last year, Mr. Abhi Talwalkar, CEO of LSI, was interviewed with "EDN China", this optimistic attitude was indeed a bit uncertain in the industrial environment at that time, Almost a year later, LSI's global performance, especially in the Chinese market, has no suspense to turn this optimism into reality. Not long ago, Mr. Talwalkar, who visited China for the second time this year, said in an exclusive interview with "EDN China" that the diversified product advantages in the storage and networking fields have enabled LSI to maintain a leading competitive advantage in these two major markets.
Overall performance meets expectations
According to the information provided by LSI, currently, the company ranks first in the global OEM RAID storage system, RAID adapter outsourcing market, SAS chips, SAN custom chips, and multi-service processor markets. The processor market is second. "Indeed, the global market, especially the communications market, has contracted this year, but the Chinese market has grown against the trend. LSI adopted an aggressive offensive strategy in the crisis and accelerated our business growth through more acquisitions." Talwalkar said, "Although some customers in the communications market have experienced a 15% to 20% decline in business this year, the business of top companies including Huawei and ZTE is growing, and these companies are our main customers."
In fact, it is precisely because of the start of 3G in the Chinese market that this year has brought no small stimulus to LSI's network processors and DSPs. Although LSI's overall revenue this year will be slightly under the global market downward environment Decrease, but as of now, the performance of LSI has reached the expected target. In addition, Talwalkar is particularly satisfied that DesignWin has achieved growth, which indicates that next year's business will have a better foundation.
Talwalkar said that companies in the global IT field have seen more mergers and acquisitions this year, which has led to a more vertical concentration of the market. The four major areas of storage, servers, PCs and networks are being mastered by fewer top companies. . LSI is one of the few big players in the storage and networking field. Huawei, ZTE and other companies have adopted almost all of their product lines. Globally, companies that can provide both highly related and extensive product lines of network and storage are also available. Only LSI. "The trend we are seeing is that data and traffic are increasing rapidly, and the storage and transfer of data has become an urgent need in the market," Talwalkar said. "LSI is the only company that uses storage and network technology as its core product and can provide slave controllers. To the control of server storage arrays, from boards to systems and virtual software, from media and content processing to multi-service and network processing, and all the relevant chips and products of the switching mechanism. "
Obviously, LSI notices that platformized product operations can more effectively meet customer needs, so their product line strategy is to achieve full coverage in the field of networking and storage. Talwalkar emphasized that different application systems require different products, so product platformization also needs to be considered from the application terminal. "There are some very good companies in the storage field, such as IBM, PMC-Sierra, Marvell, etc., but their products are only competing with us in a certain field. In these competitive fields, LSI ’s TIme-to-market capability and high cost performance And more choices, the OEM business model and the only ability to provide storage virtualization management software have won us more markets. "
Storage and networking trends
The trend of networked terminal devices has put forward higher requirements for data storage and transmission, which has a huge impact on the storage and network market. Talwalkar believes that these impacts on chips, boards and centralized and distributed network processing solutions Put forward higher requirements. In addition, the evolution of enterprise storage has brought more challenges. LSI acquired ONStor, a NAS vendor, for $ 25 million in July this year to further enhance their products in the enterprise storage iSCSI and unified storage market. Talwalkar said that SAS, Ethernet (iSCSI) and FC, the three main technologies of current enterprise-level storage interfaces, will coexist for a period of time. From high to low in performance ranking, they are FC-Ethernet (iSCSI) -SAS, FC It is more used for interconnection between cabinets, and SAS is the interconnection of equipment in the cabinet. Of course, LSI also has related supported products.
Talwalkar also said that the increase in data and traffic has increased the requirements for processing performance, and multi-core processing has become a necessary technology. Taking multi-core DSPs as an example, multimedia gateways and wireless base station applications account for 80%. LSI has already planned for multi-core processors. Unlike competitors, LSI ’s multi-core products emphasize the performance of SoCs. Not only does it integrate multiple DSPs, but also Including hardware accelerators, memory and CPU, to improve the utilization of internal resources, not only strengthened processing power, but also has advantages in reducing BOM costs and reducing system power consumption. "Different from the earlier voice-dominated period, when video data became the mainstream of data, multi-core SoC processors are better than simple multi-core DSPs or processors in terms of performance and cost. For example, ZTE and Huawei are both on their wireless platforms. Our multimedia processor SP2600 is used in the device, which has 12 DSP cores and 3 ARM processor cores, "Talwalkar said.
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