Hewlett Packard Enterprise (HPE) has announced a definitive agreement to acquire SimpliVity, a provider of software-defined, hyperconverged infrastructure, for $650 million in cash. 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.
“This transaction expands HPE‘s software-defined capability and fits squarely within our strategy to make Hybrid IT simple for customers,” said Meg Whitman, President and CEO of Hewlett Packard Enterprise. “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.”
SimpliVity, which is privately held, was founded in 2009 and is headquartered in Westborough, MA. The company’s software-defined, hyperconverged infrastructure is designed from the ground up to meet the needs of enterprise customers who require on-premises technology infrastructure with enterprise-class performance, data protection, and resiliency, at cloud economics.
The combined HPE and SimpliVity portfolio would offer a rich set of enterprise data services across hyperconverged, 3PAR storage, composable infrastructure and multi-cloud offerings. Adding SimpliVity’s innovative technology to HPE’s hyperconverged portfolio would provide significant additional benefits to customers, including:
- Built-in enterprise data protection and resiliency that simplifies backup and enables customers to more quickly restore operations.
- Enterprise storage utilization and virtual machine (VM) efficiency that helps customers control cost and performance.
- Always-on compression and de-duplication that guarantees 90 percent capacity savings across storage and backup.
- Policy-based VM-centric management that simplifies operations and enables data mobility, making development teams and end-users more productive.
“Over the past 8 years we’ve been on an incredible journey and joining HPE is the logical next step for SimpliVity,” said Doron Kempel, Chairman and CEO of 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.”
For current HPE customers and partners, the company will continue to offer its existing hyperconverged products, the HC 380 and the HC 250. For SimpliVity customers and partners, there will be no immediate change in the product roadmap and HPE will continue to support existing SimpliVity customers and platforms.
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.