Why Is HPE Being Drawn toward the Hyperconverged Space?



Total user spending grew 70% in 2017

Earlier, we discussed how Plexxi’s acquisition could boost Hewlett Packard Enterprise’s (HPE) position in the HCI (hyperconverged infrastructure) space.

Citing the analysis of Eric Sheppard, an IDC analyst who expects innovations and investments to continue in the HCI space, SDXCentral wrote that in the space (which includes software and hardware), total user spending grew 70% to ~$2.9 billion in the 12 months that ended in June 2017 compared to $1.7 billion in June 2016. Sheppard said, “The total enterprise infrastructure market is at best flat, probably in decline. This [HCI] is a really rapidly growing market that’s still in its early days. The opportunity is massive.”

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Massive growth expected in HCI space

HCI enables enterprises’ IT modernization steps such as software-defined storage and networking and private cloud platforms, which explains the expectation of massive growth in this space.

The above presentation taken from Veeam and Wikibon shows the expected change from traditional storage to hyperscale technologies and HCI in the next ten years. Sheppard said, “It’s clear that hyperconverged has become a key pillar of hybrid cloud environments, and you’re seeing incredible amounts of innovation from companies like Nutanix to make that happen. This is now the platform that unites the on-premises private cloud and off-premises public cloud—the hybrid cloud world.”

This explains HPE’s timely interest in Plexxi to boost its position in the HCI space.


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