This month, HP Enterprise (HPE) announced an agreement to acquire Hyperconverged Infrastructure (HCI) vendor Simplivity for $650M. The acquisition highlights the growing popularity of consolidated computing systems that CIOs are adopting as an alternative to public cloud services, and suggests that on-premises computing systems still remain a crucial option for many organizations.
SimpliVity is but one of many companies offering hyperconverged systems which bundle computing, storage and networking onto the same server. The company's flagship product is called the OmniCube hyperconverged infrastructure appliance, and they've been working with hardware vendors such as Lenovo, Dell, Cisco and Huawei to bring the software portion of its solution to those vendors' hardware platforms.
SimpliVity was founded in 2009, and over the last couple of years, they raised almost $276 million in four funding rounds led by Waypoint Capital, Accel Partners, Charles River Ventures, DFJ Growth, Kleiner Perkins Caufield & Byers (KPCB) and Meritech Capital Partners. When the company raised its Series D round of $175 million in March of 2015, the company was estimated to be worth as much as $1 billion.
Article Written by David Marshall
