HPE to Acquire Data Management Startup SimpliVity for $650 million

HPE to Acquire Data Management Startup SimpliVity for $650 million Image Credit: SimpliVity

HPE has signed an agreement to acquire privately held SimpliVity, a leading provider of software-defined, hyperconverged infrastructure (combination of compute, storage and networking into a single system), for $650 million in cash.

HPE plans to combine its infrastructure, automation and cloud management software with SimpliVity’s software-defined data management platform to deliver built-for-enterprise hyperconverged offering.  The combined HPE and SimpliVity portfolio will offer a rich set of enterprise data services across hyperconverged, 3PAR storage, composable infrastructure and multi-cloud offerings, said HPE in a statement.

The hyperconverged market was estimated to be approximately $2.4 billion in 2016, and is expected to grow at a compound annual growth rate of 25 percent, to nearly $6 billion, by 2020.  

Many enterprises have legacy IT environments that are not well suited for today’s cloud-based services and on-demand applications.  Modern data management platforms need simple, user-friendly interfaces that give developers the tools they need to easily develop, scale and protect data.  A hyperconverged system integrates compute, storage and networking into a pre-configured system, managed by a user-friendly software platform that doesn’t require extensive IT staff for set up and management.  

Within 60 days of closing the transaction, HPE intends to offer the SimpliVity Omni Stack software qualified for its ProLiant DL380 servers. In the second half of 2017, the company will offer a range of integrated HPE SimpliVity hyperconverged systems based on HPE ProLiant Servers.

Meg Whitman, President and CEO, HPE
This transaction expands HPE’s software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers. More and more customers are looking for solutions that bring them secure, highly resilient, on-premises infrastructure at cloud economics.

Doron Kempel, Chaiman and CEO, SimpliVity
HPE’s broad sales reach, extensive partner channel, complementary technology and commitment to innovation will accelerate SimpliVity’s journey and significantly strengthen our ability to deliver the best-in-class hybrid IT solutions our customers are looking for.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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