By Manoj Nair | January 20, 2017
Congratulations to the Simplivity team on their acquisition by HPE for $650M announced this week. While twitterati & fake news have made some humorous comments on the change in the company’s valuation from prior rounds, only 10-15% of startups achieve a successful exit via M&A, so this is a great outcome for the team. We wish them all the best at HPE.
Validation for Hyperconverged Infrastructure (HCI)… as a use case
According to HPE’s press release, the purchase of Simplivity “advances HPE’s strategy in the fast-growing, high-margin HCI market.” While spending on HCI is growing fast, we believe that HCI will increasingly be viewed as a use case (specifically for VMs as a service) rather than a market. This shift will be driven by customers demanding integration of additional, higher layers of the stack, and innovative vendors responding to that demand with offers that support HCI as a use case, but deliver public cloud services in their data centers that include infrastructure, platform, and application management services. HCI vendors such as Nutanix and Simplivity delivered simplicity and innovation around only the infrastructure layer with emphasis on storage and data services. But as enterprise IT looks to evolve quickly from services delivery to value creation, they need to simultaneously deliver a broad set of services for legacy applications, enable application modernization where possible, and provide modern application management for developers without disruption or overhead. And this all needs to be done in a way that’s agile, flexible and on-demand, with security, control and governance. Providing functionality for this level of sophistication, choice and flexibility remain unaddressed by the current HCI offerings.
This is what we’ve been focused on building from the ground-up since we launched HyperGrid in July 2016. The ability of enterprise IT to enable innovation at a rapid pace and scale is directly tied to the business need for technology-based market differentiation. At HyperGrid, our mission is to help CIOs and IT practitioners leapfrog from simply delivering services to creating business value by enabling business innovation while maintaining security, control and governance over delivery of IT services.
Enterprise Cloud Services solve IT’s key challenges
Along with the growth of spending on HCI we have also seen the public cloud grow dramatically with >$22B spent in 2016. Customers have embraced the public cloud’s agility and consumption economics. However, like HCI, we see public cloud as a partial solution to customer challenges; there are significant problems due to shadow IT owing to lack of control and governance, risk of cloud lock-in and poor support beyond VM-based computing.
Enterprises are looking for an integrated and expanded IT solution that goes beyond HCI and public cloud options. This broader dynamic in IT is driving our vision for Enterprise Cloud Services, which deliver public cloud-like services in the customer data center. Here’s a brief comparison of HCI, public cloud, and Enterprise Cloud Services:
IT teams deploying Enterprise Cloud Services can better support overall business innovation and success through fast and flexible deployment of new and existing applications on the most efficient delivery platforms. The shift away from a do-it-yourself approach to service delivery and higher-value added activities minimizes the need for IT to perpetually focus on building, integrating, optimizing, maintaining and refreshing many point solutions from multiple vendors that make up their services stack.
HyperCloud is Enterprise Cloud Services that provides the only consumption-based, cloud service for the enterprise on-premises, with integrated governance and control for DevOps management and orchestration for any application on bare-metal, VMs and containers, and on any cloud.
Get in touch with us
We’d love to hear from you to start a conversation on how Enterprise Cloud Services could impact your business. Send us a note at [email protected] or call us at +1.855.786.7065. Stay tuned for more updates on this page on how Enterprise Cloud Services can help your business.
And if you’re an existing hyperconverged, traditional Infrastructure or public cloud customer assessing your options and looking for a broader strategy, please contact us to learn about a special offer to support you in transitioning to HyperCloud Enterprise Cloud Services.