Silver Peak’s Self-Driving WAN Will Strengthen Aruba’s Edge
Services Platform to Advance WAN Transformation for Cloud-First
Enterprises
Acquisition Highlights and Key Customer Benefits:
- The combination of Aruba and Silver Peak will accelerate Cloud
transformation for enterprises with a comprehensive edge-to-cloud
networking solution covering all aspects of wired, wireless LAN and
wide area networking (WAN)
- Silver Peak’s simple, intuitive ‘self-driving’ WAN delivers
significant cost savings while maintaining application performance
for rapid business recovery in a post COVID-19 world
- Silver Peak complements Aruba’s existing work from home and
branch office solutions to deliver one of the industry’s most
comprehensive portfolios designed to securely connect any edge to
any cloud
- Establishes end-to-end leadership with a comprehensive, secure
networking portfolio in growing market for campus, data center,
branch and remote worker locations
Hewlett Packard Enterprise (NYSE:HPE) today announced that it
has entered into a definitive agreement to acquire Silver Peak, an
SD-WAN (Software-Defined Wide Area Network) leader, in a
transaction valued at $925 million. Silver Peak will be combined
with HPE’s Aruba business unit and will extend Aruba’s technology
leadership in the large and fast-growing SD-WAN space.
“HPE was an early mover in identifying the opportunity at the
edge and that trend is accelerating in a post-COVID world,” said
Antonio Neri, president and CEO of HPE. “With this acquisition we
are accelerating our edge-to-cloud strategy to provide a true
distributed cloud model and cloud experience for all apps and data
wherever they live. Silver Peak’s innovative team and technology
bring critical capabilities that will help our customers modernize
and transform their networks to securely connect any edge to any
cloud.”
Silver Peak’s advanced SD-WAN offerings are highly complementary
and strengthen Aruba’s Edge Service Platform (ESP). By combining
Silver Peak’s SD-WAN with Aruba’s SD-Branch solutions customers can
simplify branch office and WAN deployments to empower remote
workforces, enable cloud-connected distributed enterprises, and
transform business operations without compromising quality or
reliability.
“Today’s announcement comes at a unique moment for our
customers, who are grappling with business recovery in the wake of
the pandemic,” said Keerti Melkote, president of Intelligent Edge
for Hewlett Packard Enterprise and founder of Aruba Networks. “The
need for edge-to-cloud architectures has never been more relevant
as enterprises look to extend connectivity to branch locations and
enable secure work-from-home experiences. Silver Peak’s technology
transforms legacy WAN architectures to self-driving WANs, which is
a perfect fit with Aruba’s cloud-native, AI-driven Edge Services
Platform. Together, we will be able to meet these needs with
critical connectivity, security, and AI capabilities to drive the
next generation of Edge-to-Cloud transformation.”
A Leader in SD-WAN and WAN Optimization Technologies
Silver Peak is a leader in the SD-WAN market with more than
1,500 production SD-WAN customers around the world. The company
helps enterprises and service providers quickly migrate to secure
enterprise-grade SD-WAN connectivity, while dramatically improving
application performance and lowering connectivity costs. Powered by
Silver Peak’s SD-WAN edge platform, customers can achieve dedicated
WAN-like performance while running all cloud applications and
services via broadband access. Silver Peak also enables freedom of
choice to leverage best-in-class technologies from a broad range of
ecosystem partners, particularly those focused on security. Silver
Peak is one of two leaders recognized in the Gartner, Magic
Quadrant for WAN Edge Infrastructure, 2019 which complements
Aruba’s leadership in wired and wireless networking.
“Bringing together Silver Peak’s advanced SD-WAN solutions with
Aruba’s industry leading networking portfolio provides an
unprecedented opportunity to deliver comprehensive business-driven
solutions to our customers,” said David Hughes, founder and CEO of
Silver Peak. “The Silver Peak and Aruba teams share a common vision
and goal to provide simplicity, scalability, and
application-awareness at the edge. With Aruba’s extensive
go-to-market, we will further accelerate our ability to drive
faster adoption of these transformational technologies. We are
excited for the opportunities we will have as a combined team to
accelerate innovation in this fast-growing segment of the
networking market.”
Massive Growth in Connected Devices and Cloud Requirements
are Accelerating Demand for Complementary SD-WAN Solutions
As applications continue to move to the cloud, remote working
and mobile employees are on the rise, and billions of IoT devices
are added to the network, the SD-WAN market is experiencing
significant growth. That is expected to continue, with 650 Group
forecasting that the market for SD-WAN will grow from $2.3B in 2020
to $4.9B in 2024, a +20.5% CAGR.
Legacy WAN architectures are no longer viable and incur
relatively high costs, compelling enterprises to invest in SD-WAN
technology to ensure secure, scalable, and efficient connections
from the edge of their network to a diverse mix of on-premises and
cloud-based endpoints. The combination of Aruba’s all-in-one
SD-Branch strategy and remote worker solutions with Silver Peak’s
SD-WAN and WAN optimization offerings will allow HPE to better
address a greater set of customer requirements and capitalize on
this market opportunity.
The Intelligent Edge is Central to HPE’s Strategy
In 2018 HPE announced its strategic plan to invest $4 billion in
Intelligent Edge over four years, and the company has been
identifying opportunities to better help customers convert their
data – from every edge to any cloud – into actionable insights that
drive seamless interactions, while delivering simplified user and
IT experiences. The recent impacts of the global pandemic have
intensified customers’ requirements for powerful solutions at the
edge that put a premium on security, connectivity, and performance.
This investment is consistent with HPE’s core strategy focused on
accelerating investments in areas of attractive, profitable growth
including the Intelligent Edge.
Significantly Expands Aruba’s Addressable Market
The companies expect the combination to create opportunities for
significant economic upside through enhanced growth and
profitability by:
- Providing a superior value proposition to joint customers
through integrated offerings that addresses a greater set of
customer requirements
- Targeting an expanded TAM across SD-WAN and SD-Branch
implementations
- Accelerating WAN transformations across HPE and Aruba’s broad
global customer base
Transaction Details
HPE has entered into a definitive agreement to acquire Silver
Peak for approximately $925 million in cash.
Bringing together Aruba and Silver Peak will result in an
enhanced financial profile for HPE’s Intelligent Edge business. We
expect the combination to drive significant revenue opportunities
and to be accretive to Intelligent Edge segment revenue growth and
gross margin.
We expect the transaction to be neutral to non-GAAP EPS in
FY221.
The transaction is expected to close in the fourth quarter of
HPE’s fiscal year 2020, subject to regulatory approvals and other
customary closing conditions.
Investment Community Conference Call
HPE will conduct a live audio webcast of its conference call to
discuss HPE’s acquisition of Silver Peak. The call is scheduled for
Monday, July 13th, at 8:30 a.m. ET / 5:30 a.m. PT, and the webcast
will be available at
www.hpe.com/investor/hpetoacquiresilverpeak.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise is the global edge-to-cloud
platform-as-a-service company that helps organizations accelerate
outcomes by unlocking value from all of their data, everywhere.
Built on decades of reimagining the future and innovating to
advance the way we live and work, HPE delivers unique, open and
intelligent technology solutions, with a consistent experience
across all clouds and edges, to help customers develop new business
models, engage in new ways, and increase operational performance.
For more information, visit: www.hpe.com.
Forward-looking Statements
This document contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and assumptions. If such risks or uncertainties
materialize or such assumptions prove incorrect, the results of HPE
and its consolidated subsidiaries could differ materially from
those expressed or implied by such forward-looking statements and
assumptions. All statements other than statements of historical
fact are statements that could be deemed forward-looking
statements, including any statements regarding the expected
benefits and costs of the transaction contemplated by this
document; the expected timing of the completion of the transaction;
the ability of HPE, its subsidiaries and Silver Peak to complete
the transaction considering the various conditions to the
transaction, some of which are outside the parties’ control,
including those conditions related to regulatory approvals; any
statements of expectation or belief; and any statements of
assumptions underlying any of the foregoing. Risks, uncertainties
and assumptions include the possibility that expected benefits may
not materialize as expected; that the transaction may not be timely
completed, if at all; that, prior to the completion of the
transaction, Silver Peak’s business may not perform as expected due
to transaction-related uncertainty or other factors; that the
parties are unable to successfully implement integration
strategies; and other risks that are described in HPE’s SEC
reports, including but not limited to the risks described in HPE’s
Annual Report on Form 10-K for its fiscal year ended October 31,
2019 and subsequent Quarterly Reports on Form 10-Q. HPE assumes no
obligation and does not intend to update these forward-looking
statements.
1 On a GAAP EPS basis FY 22 is marginally dilutive.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200713005200/en/
Editorial contact HPE Stefanie Notaney
stefanie.notaney@hpe.com
Aruba Pavel Radda Pavel.radda@hpe.com
Investor contact Sonalee Parekh
investor.relations@hpe.com
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