Fusion-IO Has Growth Potential, But...

How long it will be before the bigger rivals figure out a way to eat away at Fusion-IO margins? Evidence suggests the company has also wondered about this. To that end, it has forged partnerships with Cisco (CSCO) and NetApp (NTAP), hoping they will help produce the level of revenue needed to keep the growth momentum going.

Bottom Line

While I am bullish on the company here, I understand there are no guarantees, particularly as IBM and EMC lurk in the background with piles of cash and resources, enough to make a meaningful impact in Fusion-IO's momentum. Then again, if they could, they likely would have done so already.

Normally this is the part where I start talking about valuation and how expensive the stock is, but with a growth trajectory such as what Fusion-IO is on I just don't see a point in doing that here.

The company's value is in the way that it saves enterprises money while helping companies become more efficient. These are areas that very few companies can afford to ignore. Likewise, ignoring Fusion-IO and its growth potential may one day yield plenty of investor regret.

At the time of publication, the author had a position in AAPL.

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This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

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