HPE Snaps Up Silver Peak for $925 Million


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… existing HPE, Aruba and Silver Peak partners across the entire portfolio, the company said.

“Today’s announcement comes at a unique moment for our customers, who are grappling with business recovery in the wake of the pandemic,” said Melkote, president of Intelligent Edge for HPE, and founder of Aruba Networks. “The need for edge-to-cloud architectures has never been more relevant as enterprises look to extend connectivity to branch locations and enable secure work-from-home experiences. Silver Peak’s technology transforms legacy WAN architectures to self-driving WANs, a perfect fit with Aruba’s cloud-native, AI-driven edge services platform. Together, we will be able to meet these needs with critical connectivity, security and AI capabilities to drive the next generation of edge-to-cloud transformation.”

Vendors reported significant increase in orders and deployments of SD-WAN appliances in residential locations. This is to connect and secure remote workers due to the pandemic, according to Omdia.

HPE Comes Into Its Element

Techaisle's Anurag Agrawal

Techaisle’s Anurag Agrawal

“The Silver Peak acquisition is a good one which gets HPE into the SD-WAN segment. If HPE can find a way to make it part of its overall SMB strategy, it will be absolutely awesome,” Anurag Agrawal, founder and global analyst at Techaisle, told Channel Futures. “Our recent global post-COVID data shows there’s likely to be a 345% increase in SD-WAN adoption within small businesses (an increase from 10% of small businesses to 34%). Within the midmarket there will likely an adoption increase of SD-WAN adoption of 93%. HPE is coming into its element.”

Silver Peak traditionally and strategically focuses on the enterprise segment and service provider market. Agrawal doesn’t view this as an insurmountable challenge.

“It may be challenging to bring the offering to SMB customers, but with Aruba making useful inroads into the ‘M’ part of the SMB segment, it will just be a matter of time that it rolls out SD-WAN for the midmarket segment under its everything-as-a-service strategy. It will then enable service providers to deploy SD-WAN solutions for the ‘S’ segment, the long tail of that market,” he said.

David Hughes, CEO and founder of Silver Peak, will join HPE after this giant SD-WAN acquisition closes. Expect that to happen by the end of October.

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