Hewlett Packard Enterprise announced a definitive agreement to acquire SimpliVity, a leading 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. 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.
“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, 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: A Leader in Hyperconverged Infrastructure
Many enterprises have legacy IT environments that are not well suited for today’s cloud-based services and on-demand applications. Modern data management platforms need simple, user-friendly interfaces that give developers the tools they need to easily develop, scale and protect data. A hyperconverged system integrates compute, storage and networking into a pre-configured system, managed by a user-friendly software platform that doesn’t require extensive IT staff for set up and management.
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 will 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 provides 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, 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.”