Hewlett Packard Enterprise (HPE) will purchase startup Cape Networks. The service assurance firm will become part of HPE’s Aruba division. HPE did not reveal how much it paid for the company. The deal is expected to close in late March or early April 2018.
Cape Networks launched in 2014 and is based in Cape Town, South Africa and in San Francisco. The company uses sensors to provide service assurance and test network and application performance. So far it has focused primarily on WiFi networks.
The company raised a seed fund in the seven-figure dollar amount (the actual number was not publicly disclosed). The funding was led by Root Ventures.
Cape Networks and its technology will expand the artificial intelligence (AI) capabilities of Aruba, specifically Aruba NetInsight, a machine learning technology which HPE Aruba launched today at Aruba’s partner conference Atmosphere. NetInsight helps expand Aruba’s mobile architecture by adding AI-based analytics and assurance that helps to optimize network performance.
The integration of Cape Networks with HPE’s Aruba will deliver AI analytics and assurance in a variety of environments, particularly cloud, mobile, and Internet of Things (IoT).
NetInsight, coupled with the technology from Cape Networks, will allow enterprises to rapidly adapt to network changes as networks move toward cloud, mobile, and IoT.
In addition, the Cape Networks acquisition will enable IT organizations to use network sensors to optimize and remotely troubleshoot problems for on premises and cloud applications.
In a blog post written by HPE CEO Antonio Neri, he said that Cape Networks fits in with the company’s forward-looking strategy. “Over the past few years, we’ve taken steps towards realizing our vision for autonomous IT systems that improve performance, reduce disruptions, and significantly simplify IT management for our customers.”
In its most recent earnings call with investors, HPE told investors its Intelligent Edge business, which includes Aruba products and services, was up 9 percent, and posted $620 million in revenue.