Sources: Hewlett-Packard In Talks To Acquire Hyper-Converged Infrastructure Startup SimpliVity


Hewlett-Packard is in talks to acquire SimpliVity, a Westborough, Mass.-based startup in the "hyper-converged" infrastructure market, multiple sources with knowledge of the matter told CRN on Monday.

The status of the talks isn't clear, nor is it known how much HP would be paying for SimpliVity, whose flagship OmniCube product combines compute, storage backup and deduplication, networking, WAN optimization, and other enterprise technologies running on x86 server hardware.

SimpliVity has raised $101.5 million since its founding in 2009, with a $58 million Series C round last November. Investors include Kleiner Perkins Caufield & Byers, Swisscom Ventures, Accel Partners, Meritech Capital Partners, Charles River Ventures, and DFJ Growth, according to CrunchBase.

[Related: HP Launches New Apollo High-Performance Computing Systems]

An HP spokesperson declined comment, citing company policy of not responding to "rumors or speculation." HP is holding its annual Discover customer conference in Las Vegas this week.

A SimpliVity spokesperson also declined comment.

HP acquiring SimpliVity would be consistent with what CEO Meg Whitman often describes as a "new style of IT" which is being driven by the trends of social, mobile, cloud and big data. SimpliVity would also be Whitman's first major acquisition since taking over as HP CEO in September 2011.

HP already sells converged infrastructure from a portfolio that includes 3PAR storage, HP blade servers, networking gear and OpenView management software. HP's ConvergedSystems compete with VCE Vblocks and Cisco-NetApp FlexPods in the high end enterprise market.

What HP doesn’t have, and what SimpliVity would bring, is the “building block” approach of hyper-converged infrastructure, in which compute, storage and server virtualization all run on x86 hardware, with proprietary software running on top.

EMC is planning to release a hyper-converged appliance running VMware software by the end of the year, and Cisco has the wherewithal to develop one, too.