HPE to buy hyperconverged vendor SimpliVity for US$650 million

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HPE to buy hyperconverged vendor SimpliVity for US$650 million

Hewlett Packard Enterprise has announced a definitive agreement to acquired hyperconverged vendor SimpliVity for US$650 million, in a deal that will reshape the hyperconvergence landscape and put the heat on rival Cisco Systems.

HPE said by bringing together its portfolio in infrastructure, automation and cloud management software with SimpliVity's software-defined data management platform, the company will deliver the industry's only "built-for-enterprise" hyperconverged offering.

HPE is using the SimpliVity software-defined offering as a full integrated offering that will not only be available as part of a new family of HPE SimpliVity HC 380 hyperconverged offerings within but also as part of a broader software-defined fabric.

The family of HPE SimpliVity offerings will start with an HPE SimpliVity HC 380 appliance within 60 days of the close of the deal and then within six months add additional system offerings, including a VMware appliance, a backup and disaster recovery appliance and a Microsoft HyperV appliance.

The extensive HPE SimpliVity software-defined road map includes a full hybrid IT solution with SimpliVity becoming the software-defined storage layer, including tight integration with HPE's OneView management platform. HPE also plans to integrate the SimpliVity software with HPE Synergy and 3Par.

The acquisition is expected to close in the second quarter of HPE's fiscal year 2017.

Doron Kempel, CEO of SimpliVity, said in a statement that joining HPE was the company's logical next step.

"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," he said.

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

HPE said the combined portfolio will offer a rich set of enterprise data services across hyperconverged, 3Par storage, composable infrastructure and multi-cloud offerings.

Rival Cisco took the wraps off its hyperconvergence play, Hyperflex Systems, at Cisco Partner Summit in March in front of thousands of partners. Hyperflex consists of Cisco UCS servers and software-defined storage technology developed through a strategic partnership with Springpath. By August, Cisco reported there was approximately 500 customers using HyperFlex.

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