Jan 19 2017
Data Center

HPE Buys SimpliVity for $650 Million

The deal is expected to strenghten Hewlett-Packard Enterprise's position in the hyperconverged infrastructure market.
Phil Goldstein
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Phil Goldstein is a former web editor of the CDW family of tech magazines and a veteran technology journalist. He lives in Washington, D.C., with his wife and their animals: a dog named Brenna, and two cats, Grady and Princess.

Hewlett-Packard Enterprise acquired hyperconverged infrastructure specialist SimpliVity this week for $650 million. The deal is expected to close in the second quarter of HPE’s 2017 fiscal year, which ends on June 30.

Hyperconverged platforms combine computing, storage, networking and virtualization capabilities, all pre-integrated and controlled by a single management layer. 

HPE said the hyperconverged market was estimated to be around $2.4 billion in 2016, and the company thinks it will grow at a compound annual growth rate of 25 percent, to nearly $6 billion, by 2020.  

"By bringing together HPE’s best-in-class infrastructure, automation and cloud management software with SimpliVity’s industry leading software-defined data management platform, HPE and its partner ecosystem will deliver the industry’s only 'built-for-enterprise' hyperconverged offering," HPE said in a statement.    

As the Wall Street Journal reports: "HPE believes SimpliVity will help its efforts in a fast-growing, high-margin market as businesses move from legacy technology to modern data management platforms with user-friendly interfaces."

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