Hewlett Packard Enterprise (HPE) is set to buy SGI, a solutions provider for compute, data analytics, and data management, in a deal valued at approximately $275 million.
Scientific, technical, business and government communities utilize SGI solutions services for high-performance computing (HPC) and big data analytics to solve computing, data management and virtualization problems.
The company has approximately 1,100 employees worldwide, and had revenues of $533 million in fiscal 2016.
Recently John Spooner, director, Internet of Things (IoT) and Devices Practice at TBR, said HPE puts analytics at the edge to further customers’ IoT journeys.
John Spooner said HPE is building its Internet of Things (IoT) business around what it sees as the rise of the digital enterprise, the result of a coming convergence of information technology and operational technology, driven by businesses’ needs to capture and rapidly assess mission-critical data from their operations and their customers.
Antonio Neri, executive vice president and general manager, Enterprise Group, Hewlett Packard Enterprise, said: “SGI’s technologies and services, including its big data analytics and high performance computing solutions, complement HPE’s data center solutions designed to create business insight and accelerate time to value for customers.”
The $11 billion HPC segment is expected to grow at an estimated 6-8 percent CAGR over the next three years, with the data analytics segment growing at over twice that rate, according to estimates from IDC.
SGI’s portfolio, including its in-memory high performance data analytics technology, will extend and strengthen HPE’s current position in the growing mission critical and high performance computing segments of the server market.
The combined HPE and SGI portfolio will support private and public sector customers seeking larger supercomputer installations, including U.S. federal agencies as well enterprises looking to leverage high-performance computing for business insights and a competitive edge.