The hyperconverged infrastructure (HCI) is one of the fastest growing sectors within the software-defined industry. A regular pattern found in market news and press releases is the notice of established HCI vendors procuring HCI startups to advance existing HCI products. Hewlett Packard Enterprises (HPE) is no exception to this trend of gobbling up other HCI companies to enhance its own product. In fact, in January 2017, HPE paid $650 million in cash to acquire the HCI company, SimpliVity, and now offers SimpliVity as an HPE HCI merchandise.
HCI is a type of software-defined storage (SDS). It combines the storage, compute, and networking components into one data center for dynamic computing, such as cloud computing, remote office/branch office (ROBO), and virtual desktop infrastructure (VDI). HCI is a cost-effective data storage that provides escalated data protection, speedier deployments, and a single pane of glass for data analytics.
HPE HCI: A Revenue-Generating Product for HPE
HPE’s HCI goal is to provide an “enterprise grade hyper-converged offering paired with the power of the cloud,” with an emphasis on the hybrid cloud. And it appears that its focus on HCI and the cloud is paying off when it comes to revenue. SDxCentral editor Jessica Hardcastle reported on HPE’s first quarter 2018 earnings that “compute revenue grew 11 percent, driven by strong hyperconverged infrastructure (HCI) and composable infrastructure sales.”
Other Strategic Acquisitions for the HPE HCI Product
Shortly after buying SimpliVity, HPE acquired Nimble Storage in April 2017 with the intention of “deploying turnkey VM-farms [virtual machines] with advanced data services” with Nimble Storage’s all-flash storage products.
The following year, in May 2018, HPE announced its intention to purchase Plexxi. In a blog post, HPE frames the purpose behind the acquisition as Plexxi enabling HPE “to deliver the industry’s only hyperconverged offering that incorporates compute, storage and data fabric networking into a single solution, with a single management interface and support.”