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Why Hewlett Packard Enterprise Acquired Plexxi

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Plexxi provides software-defined data fabric networking technology

On May 15, Hewlett Packard Enterprise (HPE) announced its intention to acquire data center SDN (software-defined networking) company Plexxi for an undisclosed sum. Plexxi, founded in 2010, has received ~$83.4 million in funding to date. Plexxi develops optimized networks to improve application performance. HPE expects Plexxi’s acquisition to close by fiscal 3Q18.

This acquisition will also strengthen HPE’s software-defined portfolio. In a blog post, HPE stated that “Plexxi’s technology will extend HPE’s market-leading software-defined compute and storage capabilities into the high-growth, software-defined networking market, expanding our addressable market and strengthening our offerings for customers and partners.”

HPE aims to deliver a cloud-like experience in the data center space by combining its software-defined infrastructure with Plexxi’s data center fabric, increasing efficiency and agility for enterprises.

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Plexxi’s technology to be integrated with hyperconverged solutions

Last year, HPE acquired SimpliVity to penetrate the hyperconverged space. Now, HPE wants to integrate Plexxi’s technology with hyperconverged solutions to provide a single compute, storage, and data fabric networking offering. This combined solution could enable enterprises to align IT resources with business priorities more efficiently.

Previously in this series, we saw that HPE’s hyperconverged market share and revenue have grown significantly compared with Cisco’s (CSCO), Nutanix’s (NTNX), and Dell’s. HPE has also been named a hyperconverged market leader in Gartner’s Magic Quadrant.

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