Hewlett Packard Enterprise has agreed to buy SimpliVity for $650 million as it expands its hyperconverged offerings, and analysts say it’s a great deal.
SimpliVity makes management software that helps administrators gain control over data center resources. The tools help enterprises make efficient use of server, storage and networking resources.
The deal is expected to close in the second quarter.
For months, HPE was rumored to be pursuing SimpliVity, which also offers convergence tools for servers from Dell, Lenovo and Huawei. Hyperconvergence companies are a hot commodity. Nutanix, a top player in the market, went public in September last year.
Hyperscale companies typically have virtualized environments so computing resources can be scaled quickly. HPE is aggressively chasing cloud deployments with its hyperconverged hardware, and SimpliVity’s tools will fit into those offerings.
The acquisition is a big deal for HPE, said Patrick Moorhead, principal at Moor Insights and Strategy, in an email.
“I predicted HPE would make infrastructure purchases once they started to spin-merge their services and software divisions,” Moorhead said.
