Why Hewlett Packard Enterprise Acquired a Cloud Consulting Company
HPE acquires Cloud Technology Partners
A few days ago, Hewlett Packard Enterprise (HPE) acquired cloud consulting company Cloud Technology Partners or CTP for an undisclosed amount. HPE believes this acquisition will strengthen its hybrid IT (information technology) consulting capabilities in the Cloud market space. CTP works with enterprises and advises them on the most appropriate cloud technology based on their needs and requirements.
Businesses now have a variety of cloud solutions to choose from, including those from tech giants Microsoft (MSFT), Google (GOOG) (GOOGL), and Amazon.com (AMZN), and CTP helps clients to navigate and set up this process.
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During HPE’s fiscal 3Q17 earnings call, CEO (chief executive officer) Meg Whitman stated that CTP is “A leading cloud consulting company that helps its Fortune 500 customers move to a cloud, build new cloud-based solutions and manage their cloud environment.”
CTP was founded seven years ago and has raised ~$34 million in funding from investors. Its customer base includes firms such as Land O’Lakes and Avid Technology. CTP has completed close to 500 cloud transformation projects in the past seven years.
Hybrid IT consulting market expected to rise
According to a McKinsey report, worldwide spending in the hybrid IT consulting and cloud native development is expected to rise at a CAGR (compound annual growth rate) of 18%, from $6 billion in 2016 to ~$7.1 billion in 2017. HPE aims to capitalize on CTP’s strong customer base and leverage the HPE brand to gain further traction.
HPE has now acquired five companies so far in calendar 2017. In January 2017, HPE acquired SimpliVity for $650 million, and in March, it acquired Nimble Storage for $1.1 billion. HPE also acquired cloud analytics firm Cloud Cruiser and security analytics firm Niara for undisclosed amounts.