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Why did Hewlett Packard Enterprise buy SGI?

James Henderson | Aug. 16, 2016
SGI will improve HPE's ability to maximise share in the analytics and HPC markets.

“Most prominently, SGI potentially offers HPE a new means to migrate its portfolio and install base off of Intel’s Itanium processors - which continue to shrink in demand due to industry commoditisation - in the mid to long term,” Macomber says.

In the short term, SGI provides competencies around scalable, high-performance storage that will be valuable to HPE as Dell nears its proposed acquisition of EMC.

Additionally, Macomber believes SGI’s systems and data management and visualisation software, and consulting and support services will better position HPE to compete against vendors such as IBM, Fujitsu and others as an analytics and HPC solution provider, as opposed to a systems provider.

“In particular, SGI brings unique IP in bundling HPC-dedicated infrastructure for SAP HANA to HPE,” Macomber adds.

“This approach will help HPE secure its traction in customers’ analytics workloads and expand this footprint in under-penetrated environments.”


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