HPE's acquisition of Nimble Storage not so simple
Hewlett Packard Enterprise on Tuesday said it plans to acquire Nimble Storage, which develops all-flash and hybrid flash storage systems and related technologies, for $1 billion in cash.
HPE said the acquisition would give it a full range of flash storage systems for SMB to large enterprise clients and help it better compete in the fast-growing all-flash storage market.
However, this deal is happening in a storage industry that is changing quickly, with the shift from disk-based storage to flash happening even as overall storage revenue continues to fall in the face of increasing reliance on the cloud and on software-defined storage technologies. HPE will have to decide whether and how to consolidate at least five storage lines, and how to handle Nimble Storage's strategic relationships with HPE rivals Cisco and Lenovo.
The acquisition is part of a genuinely riveting story of change in the storage industry.