HPE sets sights on the hyperconverged infrastructure market as it pays $650 million in cash for SimpliVity, a startup described as the 2nd placed in the hyperconverged infrastructure appliance market.
“This transaction expands HPE’s software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers,” CEO Meg Whitman says. “More and more customers are looking for solutions that bring them secure, highly resilient, on-premises infrastructure at cloud economics. That’s exactly where we’re focused.”
The acquisition puts HPE in hyperconverged pole position, as it brings along SimpliVity OmniStack Software and OmniCube infrastructure appliance. SimpliVity software supports VMware, Hyper-V and KVM hypervisors, and runs on servers from the likes of Dell EMC, Lenovo and Huawei. As such, HPE plans to bring OmniStack to ProLiant DL380 servers within 60 days of the transaction's closing, before it starts offering a range of integrated HPE SimpliVity hyperconverged systems by H2 2017.
Rumour has it HPE got SimpliVity for a really good sum, since back in November 2016 the grapevine put its price at $3.8-3.9 billion. According to HPE this makes a good investment, since the hyperconverged infrastructure market is worth $2.4bn in 2016, and it should grow at a CAGR of 25% to nearly $6bn by 2020.