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Western Digital to invest $51m in SSD startup Skyera

Western Digital on Tuesday announced that it is making a strategic investment of $51 million (over £34 million) in enterprise solid-state storage startup Skyera.

The California-based hard-drive manufacturer had previously funded Skyera as an outside investor - as had Dell Ventures - which also contributed to the latest round of Series B funding.

Skyera says that the money will be spent on scaling the company's business across engineering, sales, and marketing. Meanwhile, Western Digital confirmed that the new investment included a deal between the two companies for developing joint technology.

"One of our primary goals in developing strategic relationships with technology innovators in the broader storage ecosystem is to enable customers to develop highly optimized storage solutions that meet their changing data management needs," Western Digital president and CEO Steve Milligan said following the deal.

"We see companies like Skyera as offering a dramatic improvement over traditional approaches to emerging storage challenges," he added.

However, it was not disclosed as to what new technology the two companies are planning to develop under their joint venture, but analysts suggest it is likely to be based on Skyera's enterprise solid-state storage system.