#HPE nterprise has bought #SimpliVity, a Massachussetts-based storage startup, for $650 million in cash. At the time of SimpliVity's last fundraising, in March 2015, the company had declared that it was valued at "more than $1 billion." All in all, SimpliVity had raised $276 million from investors like Kleiner Perkins, Accel, and Waypoint Capital. That discounted purchase price is not an encouraging sign for the viability of "unicorn" startups of $1 billion or more. In 2017, companies like #Snap, #Spotify, and #Dropbox will likely have to justify their enormous valuations to Wall Street, and deals like this one will only enhance investor skepticism. SimpliVity competed most directly with #Nutanix, a fellow former "unicorn" with a private valuation of $2 billion, that went public in September 2016. Both companies were racing to make a dent in the market for so-called " #hyperconverged " infrastructure, a more cost- efficient way of handling data center-scale server storage that poses a threat to hardware giants like #DellEMC and HP Enterprise. Spending in this market is expected to reach $19 billion by 2018, Gartner predicts. By buying SimpliVity, HP Enterprise takes the startup's capabilities and adds it to their own — crucial as the company moves to compete with the combined Dell EMC juggernaut, following the close of their mega-merger. Dell EMC, for its part, has been investing heavily in the market, and resells Nutanix hardware to its customers.
http://www.businessinsider.com/hp-enterprise-buys-simplivity-2017-1
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