HPE to Acquire SimpliVity
January 18, 2017
Share this

Hewlett Packard Enterprise (HPE) announced a definitive agreement to acquire SimpliVity, a provider of software-defined, hyperconverged infrastructure, for $650 million in cash.

By bringing together HPE's infrastructure, automation and cloud management software with SimpliVity's software-defined data management platform, HPE and its partner ecosystem will deliver a "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, HPE. "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 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."

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.

Looking forward, HPE customers can expect to see their hyperconverged experience continue to improve with new innovations like "workspace" controls, which provide business leaders and developers with simple self-service portals to compose virtualized and containerized resources, and accelerate application development and deployment. Additionally, HPE will provide enhanced business insight, including predictive analytics, which will give IT managers the tools they need to increase resource utilization and proactively respond to needs for new resources.

HPE expects the acquisition to be accretive to earnings in the first full fiscal year following close.

The transaction is expected to close in the second quarter of HPE's fiscal year 2017, subject to regulatory review and approval, as well as other customary closing conditions and adjustments.

Share this

The Latest

August 22, 2019

Recent EMA research explored the state of ESM. One of the many conclusions is that ESM is mainstream. Fully 87% have some level of ESM deployment. Not surprisingly, there is a significant divide between mature and relatively new deployments in terms of benefits derived, use of AI and automation, adoption levels, and number of non-IT areas being served from established ITSM implementations ...

August 21, 2019

For the first time, a majority of companies are putting mission critical apps in the cloud, according to the latest report by Cloud Foundry Foundation ...

August 20, 2019

The cloud continues to transform IT in every industry. But in order to migrate to the cloud, embrace these new technologies and truly evolve their business, organizations need an underlying network that can support digital transformation ...

August 19, 2019

One common infrastructure challenge arises with virtual private networks (VPNs). VPNs have long been relied upon to deliver the network connectivity and security enterprises required at a price they could afford. Organizations still routinely turn to them to provide internal and trusted third-parties with "secure" remote access to isolated networks. However, with the rise in mobile, IoT, multi- and hybrid-cloud, as well as edge computing, traditional enterprise perimeters are extending and becoming blurred ...

August 15, 2019

The configuration management database (CMDB), along with its more federated companion, the configuration management system (CMS), has been bathed in a deluge of negative opinions from all fronts — industry experts, vendors, and IT professionals. But from what recent EMA research on analytics, ITSM performance and other areas is indicating, those negative views seem to be missing out on a real undercurrent of truth — that CMDB/CMS alignments, whatever their defects, strongly skew to success in terms of overall IT progressiveness and effectiveness ...

August 14, 2019

The on-demand economy has transformed the way we move around, eat, learn, travel and connect at a massive scale. However, with disruption and big aspirations comes big, complex challenges. To take these challenges head-on, on-demand economy companies are finding new ways to deliver their services and products to an audience with ever-increasing expectations, and that's what we'll look at in this blog ...

August 13, 2019

To thrive in today's highly competitive digital business landscape, organizations must harness their "digital DNA." In other words, they need to connect all of their systems and databases — including various business applications, devices, big data and any instances of IoT and hybrid cloud environments — so they're accessible and actionable. By integrating all existing components and new technologies, organizations can gain a comprehensive, trusted view of their business functions, thereby enabling more agile deployment processes and ensuring scalable growth and relevance over the long-term ...

August 12, 2019

Advancements in technology innovation are happening so quickly, the decision of where and when to transform can be a moving target for businesses. When done well, digital transformation improves the customer experience while optimizing operational efficiency. To get there, enterprises must encourage experimentation to overcome organizational obstacles. In other words ...

August 08, 2019

IoT adoption is growing rapidly, and respondents believe 30% of their company’s revenue two years from now will be due to IoT, according to the new IoT Signals report from Microsoft Corp ...

August 07, 2019

It's been all over the news the last few months. After two fatal crashes, Boeing was forced to ground its 737. The doomed model is now undergoing extensive testing to get it back into service and production. Large organizations often tell stakeholders that even though all software goes through extensive testing, this type of thing “just happens.” But that is exactly the problem. While the human component of application development and testing won't go away, it can be eased and supplemented by far more efficient and automated methods to proactively determine software health and identify flaws ...