**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from March.**
Hewlett-Packard Enterprise (HPE) is acquiring hyperconverged network (HCN) vendor Plexxi, allowing the former to extend its software-defined compute and storage capabilities into the software-defined networking market.
Plexxi provides software-defined data fabric networking technology. HPE said it will expand its market and strengthen its offerings for customers and partners.
Financial terms of the deal aren’t being disclosed. It’s expected to close by July 31.
Sarwar Raza, HPE’s vice president of strategy for the software-defined and cloud group, tells Channel Partners the acquisition provides HPE and its partners with “an unparalleled set of capabilities in the hyperconverged segment, where HPE will be the only vendor that can provide a truly integrated, turnkey, fully automated hyperconverged infrastructure (HCI) solution that solves the network complexity problem.”
“Similarly, as we enable HPE’s composable vision across more compute form factors, our partners will benefit from extended opportunities to offer high-value, integrated solutions to customers,” he said.
In his blog, Ric Lewis, senior vice president and general manager of the software-defined and cloud group, said HPE plans to integrate Plexxi technology into its hyperconverged solutions.
“Building on last year’s SimpliVity acquisition, Plexxi will enable us 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,” he said. “Second, Plexxi’s technology will extend our composable infrastructure portfolio, called HPE Synergy. In the near future with Plexxi, we will deliver a composable rack solution that will seamlessly extend our composable fabric to a broader set of use cases across the data center.”
In terms of Plexxi’s partners and partner program, nothing changes until the deal closes and “we integrate the two companies, but our intent is to continue to support Plexxi’s existing customers consistent with their current support contracts,” Raza said.
In his blog, Rich Napolitano, Plexxi’s CEO, said the companies’ “values and vision for the future are closely aligned.”
“With the combination of Plexxi’s innovative network technology and HPE’s software-defined infrastructure and global reach, customers have more options than ever before to chart their own course and maintain competitive edge,” he said. “In the coming months, we will be sharing additional details on how HPE and Plexxi will be working together. We are excited about the opportunities ahead.”
Brad Casemore, IDC’s research vice president of data-center networks, said when it acquired SimpliVity, HPE wanted to more aggressively move into HCI. Networking is a critical component of HCI, so that was a prime driver for HPE to now buy Plexxi, he said.
Dell and Cisco are strong competitors in his area, but HPE will be in a “very strong position” to market its HCI, he said.
“It will all come down to how quickly the integration occurs,” Casemore said. “Also, how simple they make it to operate and manage is going to be key.”