HP be Nimble, HP be quick!

In Technology by Ekam Jagpal0 Comments

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Key notes on HPE Nimble acquisition.

  • Nimble to get the financial and marketing backing from the tech giant HPE.
  • HPE becomes a major player in the storage.
  • Nimble to share InfoSight with HP and expand it across all storage systems combined.
  • HP buying power should provide an even more affordable flash storage for Nimble.
  • Nimble to expand its customers around the globe due to HP merger.
  • Probably the most important key note to for end users and business will be. Whose customer service will HP and Nimble adopt?

PALO ALTO, Calif., March 7, 2017 – Hewlett Packard Enterprise (NYSE:HPE) today announced it has entered into a definitive agreement to acquire Nimble Storage, the San Jose, Calif.-based provider of predictive all-flash and hybrid-flash storage solutions. HPE will pay $12.50 per share in cash, representing a net cash purchase price at closing of $1.0 billion. In addition to the purchase price, HPE will assume or pay out Nimble’s unvested equity awards, with a value of approximately $200 million at closing.

Flash storage is a fast-growing market and an increasingly important element of today’s hybrid IT environment. The overall flash market was estimated to be approximately $15 billion in 2016 and is expected to be nearly $20 billion by 2020, with the all-flash segment growing at a nearly 17 percent compound annual growth rate.

Nimble’s predictive flash offerings for the entry to midrange segments are complementary to HPE’s scalable midrange to high-end 3PAR solutions and affordable MSA products. This deal will enable HPE to deliver a full range of superior flash storage solutions for customers across every segment.

In addition, HPE plans to incorporate Nimble’s InfoSight Predictive Analytics platform across its storage portfolio, which will enable a stronger, simplified support experience for HPE customers. For example, InfoSight automatically detects 90 percent of all issues within a customer’s infrastructure, and resolves over 85 percent of them.  This dramatically reduces the amount of time and effort a customer’s IT team spends on support activities.

“Nimble Storage’s portfolio complements and strengthens our current 3PAR products in the high-growth flash storage market and will help us deliver on our vision of making Hybrid IT simple for our customers,” said Meg Whitman, President and CEO, Hewlett Packard Enterprise. “And, this acquisition is exactly aligned with the strategy and capital allocation approach we’ve laid out. We remain focused on high-growth and higher-margin segments of the market.”

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