Analyse this: HP Enterprise buys big data player SGI for $275m

12 Aug 2016

The acquisition of SGI will boost HPE in terms of growing opportunities in big data workload and analytics

Hewlett-Packard Enterprise has acquired SGI, a company that makes software, servers and storage for big data, for $275m in cash and debt.

Hewlett-Packard Enterprise split from HP last year as part of a major restructure instigated by CEO Meg Whitman.

The acquisition of SGI, which was originally known as Silicon Graphics, will significantly expand HP Enterprise’s (HPE) data analytics business and will make the company a bigger player in the high-performance computing (HPC) market.

‘The computing power that our solutions deliver can interpret this data to give customers quicker and more actionable insights’

“At HPE, we are focused on empowering data-driven organisations,” said Antonio Neri, executive vice president and general manager, Enterprise Group, Hewlett-Packard Enterprise.

“SGI’s innovative technologies and services, including its best-in-class big data analytics and high-performance computing solutions, complement HPE’s proven data centre solutions designed to create business insight and accelerate time to value for customers.”

Explosion in data drives HPE acquisition of SGI

The explosion of data is driving organisations to invest in higher-performance computing systems to run big data workloads.

As a result of this demand, according to IDC, the $11bn HPC segment is expected to grow at an estimated 6-8pc CAGR over the next three years, with the data analytics segment growing at over twice that rate.

“Our HPC and high-performance data technologies and analytic capabilities, based on a 30-plus year legacy of innovation, complement HPE’s industry-leading enterprise solutions,” said Jorge Titinger, CEO and president of SGI.

“This combination addresses today’s complex business problems that require applying data analytics and tools to securely process vast amounts of data.

“The computing power that our solutions deliver can interpret this data to give customers quicker and more actionable insights. Together, HPE and SGI will offer one of the most comprehensive suites of solutions in the industry, which can be brought to market more effectively through HPE’s global reach.”

Business analytics image Via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years