Cisco Buys Hyperconverged Infrastructure Software Firm Springpath For £250m


Cisco continues expansion into software with acquisition, becoming latest tech giant to invest in HCI

Cisco is buying software developer Springpath for $320 million (£250m) as the technology sector increasingly turns its attention towards hyperconverged infrastructure (HCI). 

Springpath is most notable for its distributed file system for HCI that enables server-based storage systems, and Cisco hopes the acquisition will accelerate its move into software-defined infrastructure and the data centre market. 

The two companies have a pre-existed relationship. Cisco first met Springpath in 2012, shortly after its formation, and invested in the startup’s Series-C funding round. 


Cisco Springpath 

This resulted in a collaboration on the Hyperflex HCI platform, which combined Springpath’s distributed software and Cisco’s Unified Computing System. Hyperflex now has more than 1,800 customers. 

“This acquisition is a meaningful addition to our data center portfolio and aligns with our overall transition to providing more software-centric solutions,” said Rob Salvagno, head of Corporate Business Development.  

“Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment. I’m excited to be able to provide our customers and partners with the simplicity and agility they need in data centre innovation.” 

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The deal is expected to close in the first quarter of next year, after which Springpath will become part of Cisco’s Computing Systems Product Group. 

Cisco believes it is chasing a $6 billion opportunity in the HCI space, something its rivals would agree with. Nutanix is making waves in the sector, while the enlarged Dell EMC is also chasing a share of the market. 

Other firms are also making acquisitions, most notably HPE, which bought SimpliVity for £527 million earlier this year. 

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