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Cisco finds the hyperconverged it needs with $322 million acquisition


Cisco has found the hyperconverged component it needs for its data centre business. The San Jose, California-based company announced today that it will acquire hyperconverged provider, Springpath, Inc.

The two companies have been working together since early 2016 with the launch of HyperFlex, Cisco’s fully integrated hyperconverged infrastructure system. HyperFlex combined Springpath’s software with the Cisco unified computing system.

The Cisco and Springpath HyperFlex solution directly competes with HPE’s own hyperconverged infrastructure, HPE SimpliVity. HPE acquired SimpliVity for $650 million earlier this year in February.

Cisco will be acquiring Springpath for $320 million, and it is expected to close in Cisco’s first quarter fiscal year 2018.

“This acquisition is a meaningful addition to our data centre portfolio and aligns with our overall transition to providing more software-centric solutions,” said Rob Salvagna, Cisco vice president of corporate business development, in a statement. “Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment.”

At an event in San Francisco earlier this summer, Cisco unveiled its intent-based, ‘self-learning’ network. The Cisco One program is being tweaked for these new network solutions, and the announcement includes three big profit drives for the channel. As for how this announcement will play in Canada, CDN spoke with Long View Systems about it.