Cisco Systems Completes Springpath Acquisition, Eyes NetApp
Zacks Investment Research | Sep 24, 2017 09:27PM ET
Cisco Systems Inc (NASDAQ:CSCO) recently completed the earlier announced acquisition of Sunnyvale-based start-up, Springpath, for $320 million in cash. The company is speculated to show interest in NetApp Inc (NASDAQ:NTAP) .
Springpath Strengthens Competitive Position
Springpath is well known for its distributed file system for hyperconvergence that enables server-based storage systems. The companies collaborated in early 2016 to launch HyperFlex, the industry’s first fully-integrated hyperconverged infrastructure system (“HCI”).
HyperFlex combined Cisco’s Unified Computing System ("UCS") blade servers with Springpath’s software at core. According to research firm IDC, the HCI market is anticipated to be a $6-billion opportunity by 2020.
We believe that the acquisition will boost Cisco’s competitive position in the HCI market particularly against Nutanix (NASDAQ:NTNX) . The company believes HyperFlex to be a better system as compared with Nutanix and others to address the challenges related to networking and performance of the HCI systems.
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