Inside Advanced Scale Challenges|Friday, May 26, 2017

HPE Acquires SGI: Two Compute Leaders Join Forces to Accelerate HPC Innovation

At HPE, we’ve always believed that anyone with an idea can change the world. We are living in a highly digital age where everyone and everything is becoming connected, and this is making the process of converting an idea into a new product or service easier than ever before. The pace at which today’s enterprises must move has created a whole new culture of innovation, creativity, and agility – a paradigm shift we’ve dubbed the Idea Economy.

However, we also understand that in this rapidly changing atmosphere, it takes more than just an idea to disrupt an industry, create a new market, or build a company. Surviving and thriving in the Idea Economy requires that enterprises adopt a new style of business powered by IT.

That’s why HPE continually strives to provide the technology solutions that help businesses slash the time it takes to turn their most disruptive ideas into reality. Because we realize that today’s companies require more powerful analytic tools to turn data into insights, we’re constantly renewing our commitment to deliver leading-edge high-performance computing (HPC) technologies to a broad range of enterprise customers.

Today, with the closing of our acquisition of SGI, HPE is in a stronger position to empower data-driven organizations than ever before. Bringing a company with such a history of HPC innovation into our fold will help to further our goal of bringing end-to-end HPC solutions – from high-end supercomputing to massively parallel processing to data analytics – to enterprises of every shape, size, and industry.

This agreement represents an important step forward for both of our organizations. HPE is already a leader in the overall HPC market with a substantial lead in market share compared to the nearest competitor. We can now enhance this leadership with the highly complementary capabilities that SGI brings to our portfolio. In the high-end supercomputing segment where HPE has been a relatively new entrant, SGI’s has a leadership position with over two decades of experience and skills with a strong track record of success. SGI’s rich history of leadership and proven set of HPC and Big Data solutions combined with HPE’s global reach, scale, and scope as an enterprise IT infrastructure solutions provider will allow a wider base of users to leverage high-end computing technologies to solve their most complex challenges and facilitate the democratization of HPC.

HPE is deeply committed to developing the SGI portfolio, capabilities, and talent and will seamless integrate them to enhance customer value in a number of ways:

Industry-leading solution portfolio

SGI's innovative products, technologies, and services will join HPE’s proven data center infrastructure solutions to create an industry-leading portfolio offering unparalleled choice and flexibility for our customers. Our shared capabilities will provide a wider selection of platforms and delivery models designed to support the most demanding HPC workloads and data-intensive environments. By merging the undisputed leader in worldwide server revenue[1] as well as HPC revenue with a scalable, focused performance leader in the HPC space, we’ll be positioned to deliver new levels of performance, scalability, and efficiency for an even broader range of customers.

SGI’s purpose-built supercomputing hardware and software portfolio will enhance HPE’s participation in very large and complex projects and bring more technology and knowledge to these challenging solutions. SGI’s end-to-end professional services capabilities (technical, consulting, and support) are considered a best practice in the industry and enable a seamless customer experience for the most complex implementations. SGI’s differentiated technology for real-time business analytics augments our strengths in the emerging high-performance data analytics (HPDA) market. When combined with HPE Apollo servers, HPE 3PAR StoreServ Storage, and the newly announced strategic partnership with Arista Networks, this acquisition positions HPE as the leading choice for comprehensive data center infrastructure solutions for the HPC, Big Data, and HPDA segments.

Accelerated technology innovation

Decades of combined HPC expertise along with HPE’s targeted R&D resources will allow us to remain at the forefront of next-generation HPC technology development. SGI’s deep supercomputing and data analytics skills and experience will accelerate our next-generation technology research initiatives like The Machine, as well as help us address the many challenges on the path to exascale computing. This acquisition dramatically enhances our position in long-term supercomputing research programs such as National Strategic Computing Initiative (NSCI) and other government programs. These high-level initiatives will help us accelerate time-to-value for our customers by bringing new capabilities to them significantly faster than the rest of the industry.

Unmatched customer experience and support

Integration of largely complementary manufacturing, support, and go-to-market capabilities as well as specialized talent creates an unmatched ability to serve, support, and innovate with customers on a global scale.

Deep integration of SGI’s services offerings, talent, and capabilities with HPE Technology Services will ensure we can deliver a differentiated customer experience. Current SGI customers can be confident that we will have the same level of service and support that they have grown accustomed to, but now they can also leverage the large scale and reach of HPE. In addition, global technical support coverage provides a single point of accountability, and helps our customers gain access to individuals with extensive compute and data management expertise to help accelerate their business transformation journey.

Committed long-term roadmap and vision

We will invest in best-of-breed capabilities across the HPE and SGI portfolios and create well-defined, integrated product technology roadmaps that accelerate time-to-value for customers and enhance our market leadership position. Our product roadmaps, technology transitions, and migration support will protect existing customer investments and lay a strong foundation for future innovation.

SGI’s strong supercomputing capabilities have been built over years of working with government agencies, academic institutions, and large commercial manufacturers, and bringing this compute power to the enterprise helps protect our customer’s investments and enables companies everywhere to leverage better computing tools than ever before.

HPE has never been more excited to join one of the world’s premier technology companies to advance our goal of accelerating customer workflows and enabling the next-generation of HPC technologies. We view our acquisition of SGI as a huge step forward in our HPC, Big Data, and Mission-Critical initiatives and solution portfolio. We hope you see it as an opportunity to partner with a compute leader who can help you transform your business, improve profitability, and accelerate innovation at any scale.

[1] IDC Worldwide Quarterly Server Tracker, September 2016