How HPE Aims to Increase Market Share in Hyper Converged Space



Hyper-converged infrastructure will see rapid adoption

Earlier in the series, we learned of Hewlett-Packard Enterprise’s (HPE) latest acquisition of SimpliVity.

HPE estimates the hyper-converged market to be worth ~$2.4 billion in 2016. It’s expected to grow at a compound annual growth rate (or CAGR) of 25% to nearly $6 billion by 2020. In late 2016, Technology Business Research stated that hyper-converged appliances’ share in the overall converged infrastructure market will rise from 7% in 2015 to 32% in 2020.

Earlier in the series, we learned that HCI (hyper-converged infrastructure) technology removes the requirement for traditional storage arrays. As the hypervisor has straight access to storage resources, it leads to performance benefits.

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Voicing a similar opinion, Krista Macomber, senior analyst at Technology Business Research, said, ”IT [information technology] departments are increasingly turning to hyper-converged platforms in lieu of traditional, costly and cumbersome data centre infrastructure to serve a range of mission-critical legacy and next-generation workloads.”

SimpliVity is a dominant player in the HCI space

The above presentation is taken from Forrester’s HCI Wave report for 3Q16. As we can see from the presentation, Nutanix is the best performer in the leaders’ quarter circle. Nutanix is closely followed by SimpliVity, which came a close second to it in 3Q16. VMware (VMW), Stratoscale, Huawei, HPE, and Cisco (CSCO), though not on the leaders list, were also strong performers in the period.

To date, SimpliVity’s 6,000 systems have been shipped to ~1,300 customers. SimpliVity won’t just boost HPE’s revenue, it will also strengthen HPE’s position in the hyper-converged space. Currently, through its offerings, the HPE Hyper Converged 250 and the HPE Hyper Converged 380, it holds only a small fraction of HCI market share.

In the words of Macomber, “As a combined entity, HPE and SimpliVity will benefit from portfolio and go-to-market depth and investment scale rivalled by few and needed to keep pace with customer workload deployment patterns and rapidly emerging pain points.”


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