January 17th, 2017 by Adam Armstrong
HPE To Acquire SimpliVity For $650 Million
Today Hewlett Packard Enterprise (HPE) announced that it has entered a definitive agreement to acquire SimpliVity for an estimated $650 million in cash. SimpliVity is a provider of software-defined hyperconverged infrastructure (HCI). This adds yet another piece of the HCI pie that HPE has been building over the last few years. The HCI market is estimated to be $2.4 billion today and grow to $6 billion by 2020.
Founded in 2009 and headquartered in Westborough, MA, SimpliVity’s technology was designed “from the ground up” for enterprise customers that need on-premises technology infrastructure with enterprise-class performance, data protection, and resiliency but need it at the same economics as the cloud. SimpliVity’s main mission was to simplify the data center, using hyper-convergence to do so. SimpliVity released its first product in April 2013.
HPE has made several HCI investments in recent years including HPE vSAN ready nodes and their own VSA products such as the HC 380. The acquisition of SimpliVity will strengthen HPE’s role in the fragmented HCI market. HPE notes that acquiring SimpliVity will strengthen its road map that is all about delivering Hybrid IT strategy and accelerating the company’s ability to deliver a modern, multi-cloud, multi-IaaS platform, powered by automation software and composable infrastructure. HPE intends to continue to offer its HCI products and qualifying the ProLiant DL380 servers for SimpliVity’s Omni Stack software within 60 days of closing.
Customer benefits from the acquisition include:
- Built-in enterprise data protection and resiliency that simplifies backup and enables customers to more quickly restore operations
- Enterprise storage utilization and VM efficiency that helps customers control cost and performance
- Always-on compression and de-duplication that guarantees 90% 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
The acquisition is still subject to regulatory review and approval and is expected to close in the second quarter of 2017. In the second half of 2017, HPE plans on offering a range of integrated HPE SimpliVity hyperconverged systems based on HPE ProLiant Servers.