I haven’t written a blog in some time, I have been working on many interesting projects.  More on that later.

This week I saw that HPE has signed a definitive agreement to acquire Nimble Storage for $1B.  Nimble is a solid system and the company has done a great job bringing it to market.  Nimble did all the right things from a sales and marketing perspective.  I can understand why it is an attractive target for HPE or any other potential acquirer.  That said, here are some reasons why I question the value of this merger:

  • HPE has a hybrid SSD/HDD system (3PAR); they have spent a lot of time porting it to a smaller entry point.  There is a significant overlap between 3PAR and Nimble from a target market perspective.  BTW, 3PAR seems to be one area in storage at HPE that is growing so why cannibalize or compete with self?
  • HPE has areas of the portfolio that are really lacking in offerings.  This includes NAS/file system storage, Object storage, tier 3 bulk storage, and others.  There is growth in storage in unstructured data and virtualization.  If you want growth, go where there is growth in the market.
  • Part of Nimble’s success is its go to market strategy and execution.  HPE takes a different approach to channel than Nimble.  One consideration is whether the challenge is gaining more growth in storage is more associated with how HPE sells and markets than what products they care, at least in some areas.  If you want to compete with younger more agile firms, then try being more agile.  Agility in sales process is something other large companies lack.

Moving forward, I hope HPE  doesn’t take too long to integrate Nimble and adopt some of Nimble’s strategies.

Advertisements