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HPE bankrolls software-defined storage startup

By Holly Morgan | March 14, 2017
The vendor provides software-defined storage for enterprises building private, hybrid, or multi-cloud environments

Technology Business Research, senior analyst, Krista Macomber, foreshadowed further vendor consolidation, in observing at the time that HPE’s SimpliVity buy reflected the need for agile innovation and selling models in a disrupted data centre market.

She said the two companies combined, generated approximately 20 per cent of global hyper-converged platforms revenues during 2016, trailing market revenue leader Nutanix but outpacing the remaining range of pure play and multiplatform peers, such as Pivot3 and Dell Technologies, on a combined basis.

Similarly, the recent acquisition of Nimble Storage reflects another significant notch of competitive consolidation in the data center space, according to Macomber.

“Immediately upon closing, Nimble’s all-flash array portfolio would fill a market gap for HPE between entry-level and enterprise-caliber offerings,” she said at the time. “From a longer-term perspective, HPE will tap Nimble storage innovation to significantly bolster its solution sets around hybrid IT.

However, while the ongoing acquisition spree is likely to quickly and significantly advance HPE’s market traction and innovation in critical corners of the data center market, Macomber warned such a strategy could create the potential threats of “scattershot” branding and customer and partner confusion that she suggests will be critical for HPE to manage.


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