Channel Beat: HPE-SimpliVity Deal Rocks Hyper-Convergence Market, But What Does It Mean For Partners?


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Hewlett Packard Enterprise shocked the channel this week when it said it will acquire hyper-converged hotshot SimpliVity for $650 million.
 
HPE partners said the acquisition will reshape the hyper-convergence landscape, and up the ante in HPE's competition with rival Cisco.
 
With SimpliVity's software-defined data management platform, HPE said it will deliver the only "built-for-enterprise" hyper-converged offering in the industry.
 
The deal is expected to close in Q2 of HPE's fiscal year 2017.
 
This week Avaya confirmed it has filed for Chapter 11 bankruptcy in an effort to reduce its $6 billion in debt.
 
The company needs to raise $600 million for a debt maturity in October 2017.
 
With financing underwritten by Citibank and Avaya's cash from operations, the company should be able to continue its business operations while it addresses its capital structure, executives said.
 
Avaya has no plans to sell its contact center business, but the company is in ongoing negotiations to monetize other assets.
 
Cisco Executive Chairman and former CEO John Chambers said the company's future is looking bright under the Trump administration.
 
This week, Chambers told The Wall Street Journal he "doubled down in the market" after Election Day.
 
Chambers had previously said he voted for Hillary Clinton, but is now predicting Trump's tax plan will allow Cisco to acquire more U.S.-based companies.
 
Chambers spoke to the Journal at the World Economic Forum in Switzerland.
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