HPE buys hyperconverged infrastructure co SimpliVity for $650 mn

HPEHewlett Packard Enterprise (HPE) is set to acquire SimpliVity, a provider of software-defined, hyperconverged infrastructure, for $650 million in cash.

HPE aims to strengthen its presence in the hyperconverged infrastructure market by buying the privately held SimpliVity, which has headquarters in Westborough, MA. HPE did not reveal the precise financial benefits during the next 12 months following the closure of the deal to buy SimpliVity.

According to estimates, the size of the global hyperconverged market is expected to grow at a compound annual growth rate of 25 percent, to nearly $6 billion by 2020 from approximately $2.4 billion in 2016.

“This transaction expands HPE’s software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers,” said Meg Whitman, president and CEO, Hewlett Packard Enterprise.

SimpliVity’s software-defined, hyperconverged infrastructure is designed to address the needs of enterprise customers who require on-premises technology infrastructure with enterprise-class performance, data protection, and resiliency, at cloud economics.

HPE will aim to offer enterprise data services across hyperconverged, 3PAR storage, composable infrastructure and multi-cloud offerings after the acquisition of SimpliVity.

Customer benefits

# Built-in enterprise data protection and resiliency that simplifies backup and enables customers to more quickly restore operations

# Enterprise storage utilization and virtual machine (VM) efficiency that helps customers control cost and performance

# Always-on compression and de-duplication that guarantees 90 percent capacity savings across storage and backup

# Policy-based VM-centric management that simplifies operations and enables data mobility, making development teams and end-users more productive

The company will continue to offer its existing hyperconverged products, the HC 380 and the HC 250, for current HPE customers and partners.

There will be no immediate change in the product roadmap for SimpliVity customers and partners and HPE will to support existing SimpliVity customers and platforms.

HPE customers will get hyperconverged experience to improve with innovations like workspace controls, which provide self-service portals to compose virtualized and containerized resources, and accelerate application development and deployment.

HPE will provide business insight, including predictive analytics, to increase resource utilization and proactively respond to needs for new resources.

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