May
17
2019
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HPE is buying Cray for $1.3 billion

HPE announced it was buying Cray for $1.3 billion, giving it access to the company’s high-performance computing portfolio, and perhaps a foothold into quantum computing in the future.

The purchase price was $35 a share, a $5.19 premium over yesterday’s close of $29.81 a share. Cray was founded in the 1970s and for a time represented the cutting edge of super computing in the United States, but times have changed, and as the market has shifted, a deal like this makes sense.

Ray Wang, founder and principal analyst at Constellation Research, says this is about consolidation at the high end of the market. “This is a smart acquisition for HPE. Cray has been losing money for some time but had a great portfolio of IP and patents that is key for the quantum era,” he told TechCrunch.

While HPE’s president and CEO Antonio Neri didn’t see it in those terms, he did see an opportunity in combining the two organizations. “By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work,” he said in a statement.

Cray CEO and president Peter Ungaro agreed. “We believe that the combination of Cray and HPE creates an industry leader in the fast-growing High-Performance Computing (HPC) and AI markets and creates a number of opportunities that neither company would likely be able to capture on their own,” he wrote in a blog post announcing the deal.

Patrick Moorhead, principal analyst at Moor Insights & Strategy says HPC is one of the fastest growing markets and HPE has indicated it wants to stake a claim there. “I’m not surprised by the deal. Its degree of success will be determined by the integration of the two companies. HPE brings increased scale and some unique consumption models and Cray brings expertise and unique connectivity IP,” Moorhead explained.

While it’s not clear how this will work over time, this type of consolidation usually involves some job loss on the operations side of the house as the two companies become one. It is also unclear how this will affect Cray’s customers as it moves to become part of HPE, but HPE has plans to create a high-performance computing product family using its new assets in combination with the new Cray products.

HPE was formed when HP split into two companies in 2014. HP Inc. is the printer division, while HPE is the enterprise side.

The deal is subject to the typical regulatory oversight, but if all goes well, it is expected to close in HPE’s fiscal Q1 2020.

Jan
09
2019
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New Synergy Research report finds enterprise data center market is strong for now

Conventional wisdom would suggest that in 2019, the public cloud dominates and enterprise data centers are becoming an anachronism of a bygone era, but new data from Synergy Research finds that the enterprise data center market had a growth spurt last year.

In fact, Synergy reported that overall spending in enterprise infrastructure, which includes elements like servers, switches and routers and network security; grew 13 percent last year and represents a $125 billion business — not too shabby for a market that is supposedly on its deathbed.

Overall these numbers showed that market is still growing, although certainly not nearly as fast the public cloud. Synergy was kind enough to provide a separate report on the cloud market, which grew 32 percent last year to $250 billion annually.

As Synergy analyst John Dinsdale, pointed out, the private data center is not the only buyer here. A good percentage of sales is likely going to the public cloud, who are building data centers at a rapid rate these days. “In terms of applications and levels of usage, I’d characterize it more like there being a ton of growth in the overall market, but cloud is sucking up most of the growth, while enterprise or on-prem is relatively flat,” Dinsdale told TechCrunch.

 

 

Perhaps the surprising data nugget in the report is that Cisco remains the dominant vendor in this market with 23 percent share over the last four quarters. This, even as it tries to pivot to being more of a software and services vendor, spending billions on companies such as AppDynamics, Jasper Technologies and Duo Security in recent years. Yet data still shows that it still dominating in the traditional hardware sector.

Cisco remains the top vendor in the category in spite of losing a couple of percentage points in marketshare over the last year, primarily due to the fact they don’t do great in the server part of the market, which happens to be the biggest overall slice. The next vendor, HPE, is far back at just 11 percent across the six segments.

While these numbers show that companies are continuing to invest in new hardware, the growth is probably not sustainable long term. At AWS Re:invent in November, AWS president Andy Jassy pointed out that a vast majority of data remains in private data centers, but that we can expect that to begin to move more briskly to the public cloud over the next five years. And web scale companies like Amazon often don’t buy hardware off the shelf, opting to develop custom tools they can understand and configure at a highly granular level.

Jassy said that outside the US, companies are one to three years behind this trend, depending on the market, so the shift is still going on, as the much bigger growth in the public cloud numbers indicates.

Nov
01
2018
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HPE and NASA make supercomputer on ISS available for experiments

Last year, HPE successfully built and installed a supercomputer on the International Space Station that could withstand the rigors of being in space. Today, the company announced that it is making that computer available for earth-based developers and scientists to conduct experiments.

Mark Fernandez, who has the lofty title of America’s HPC Technology Officer at HPE, says that the project was born with the idea that if we eventually go to Mars, we will need computers that can withstand the travel conditions of being in space for extended periods of time.

What’s more, because space computers have traditionally lacked the sophistication of earth-based computers, they conduct some of the work in space and then complete the calculations on earth. With an eye toward a Mars trip, this approach would not be feasible due to the distances and latency that would be involved. They needed a computer that could handle processing at the edge (in place) without sending data back to earth.

The original idea was to build a supercomputer with the state of the art off-the-shelf parts as and install it on the ISS as an experiment to see if this could work. They built the one teraflop computer in the summer of 2017 and launched it into space on a SpaceX rocket. The computer was built with Intel Broadwell processors, which Fernandez says were the best available at the time.

The first step was to see if the computer they built could handle the launch, the cold temperatures of waiting to be on-boarded, the solar radiation and generally uncommon conditions of being in space.

Once installed, they needed to figure out if this computer could operate in the power and cooling environment available onboard the ISS, which is not close to what you would have in earth-based datacenter with a highly controlled environment. Finally, once installed, would the computer operate correctly and give accurate answers.

The special sauce here was a package of software they call Hardened with Software. “We wrote a thin, lightweight way suite of software to quote-unquote, harden our systems of software, so you can take state of the art with you,” he said.

The computer was launched in August 2017 and has been operating ever since, and Fernandez says that it has worked according to plan. “So we’ve achieved our signed, dated and contracted mission. We have a one teraflop supercomputer on board the International Space Station with Intel Broadwell processors.” He says that supercomputer has flown around the earth 6000 times since launch.

The company now wants to open this computer up as a kind of service to earth-based developers and scientists to experiment with high-latency jobs that would have required some processing on earth. With the HPE Spaceborne Computer available to use, they can see what processing this information at the edge would be like (and if it would work). The computer will be in operation until some time next year, and in the meantime interested parties need to apply to HPE and NASA to get involved.

Mar
28
2018
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Hewlett Packard Enterprise to move HQ to San Jose

Hewlett Packard Enterprise is moving from Palo Alto to San Jose. The company will relocate 1,000 employees to a 220,000-square-foot space in late 2018. HPE was spun-off from Hewlett-Packard in 2015 and is focused on servers and storage.

This news comes months after HPE announced a different plan in which the company was moving to Santa Clara, where Aruba Networks, a company it previously acquired, is headquartered.

HPE is going to occupy six floors in San Jose’s America Center, which is located near a forthcoming Berryessa BART station.

This move is the latest win for San Jose. Google recently announced it would move in the coming years. According to a report in The Mercury News, the city of San Jose did not offer HPE any financial incentives.

Nov
21
2017
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Meg Whitman out as CEO of HPE early next year

 Six years after taking the helm as head of HP, Meg Whitman will step down from her role as CEO of Hewlett Packard Enterprise in February 2018. Whitman’s spot will be filled by the company’s current president, Antonio Neri. Read More

Nov
21
2017
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HPE adds recommendations to AI tech from Nimble acquisition

 When HPE acquired Nimble Storage in March for a cool billion dollars, it knew it was getting some nifty flash storage technology. But it also got Nimble’s InfoSight artificial intelligence capabilities that not only monitored the underlying storage arrays, but all of the adjacent datacenter technology. Today, the company announced it has enhanced that technology to provide… Read More

Sep
05
2017
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HPE scoops up Cloud Technology Partners to boost hybrid cloud consulting

 HPE has been mostly known in recent times for selling off pieces of its business, but it has quietly been on a little run this year buying up cloud companies in an attempt to build out a hybrid cloud business. Today, the company announced it was acquiring Cloud Technology Partners, a Boston-based cloud consulting firm. Terms of the deal were not disclosed. With CTP, HPE gets a consulting firm… Read More

Jan
17
2017
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HPE acquires SimpliVity for $650M in cash

1x1_mobilemarquee_template_1536_image_centers_9x6 HPE today announced that it has acquired data management platform SimpliVity for $650 million in cash. SimpliVity is one of the many companies in this space focused on what is often called “hyperconverged infrastructure.” That sounds like somebody’s buzzword — and it definitely is — but the core idea is pretty sound: hyperconverged systems combine compute,… Read More

Oct
27
2016
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HPE gears its updated Helion OpenStack distribution toward telcos

hpe_container HPE is in an interesting position. Now that it has shut down its Helion public cloud business, its main focus is on its private and managed cloud services, which center around the open source OpenStack cloud platform that’s pretty much the de facto standard for building private clouds now. HPE launched version 4.0 of its Helion OpenStack platform for enterprises this week. With… Read More

Aug
11
2016
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Hewlett Packard Enterprise picks up SGI for $275 million

Screen Shot 2016-08-11 at 6.40.35 PM The last decade-plus hasn’t been great for SGI. The company formerly known as Silicon Graphics declared Chapter 11 in 2009. That same year, it was sold to Rackable for a song, with that company somewhat confusingly changing its own name to SGI (short for Silicon Graphics International) during the process. Now former competitor Hewlett Packard Enterprise (which spun out from HP last year)… Read More

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