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Post-acquisition strategy and why storage mergers go bad
This article is part of the Storage issue of November 2020, Vol. 18, No. 4
Like other industries, the world of data storage took its hits from the pandemic-caused business malaise of 2020. The lack of a solid post-acquisition strategy on the part of large vendors that acquired smaller companies over the last few years didn't help. For example, storage leaders NetApp and Hewlett Packard Enterprise (HPE) were among the companies that reduced their staffs over the summer and, in both cases, engineering teams gained from acquisitions were hit hard. NetApp -- which bought all-flash vendor SolidFire for $870 million in 2015 -- gutted the engineering staff of its SolidFire team, while HPE cut to the core of the crew it acquired with its $650 million payment for hyper-converged infrastructure (HCI) startup SimpliVity two years later. These staff reductions got me thinking about enterprise data storage acquisitions -- why these acquisitions happen, a company's dedication to making the purchase work and how customers of acquired companies feel about the situation. Storage vendors usually acquire companies for ...
Features in this issue
Enterprise BaaS is a software as a service that delivers backup and recovery services that connect systems to the cloud. Learn how BaaS works, pros and cons, and best practices.
Discover if CI, HCI, dHCI or composable technology is right for your environment and workloads, and how the converged data center continues to evolve.
News in this issue
NetApp-SolidFire and HPE-SimpliVity cuts illustrate some of the pitfalls awaiting large vendors when they spend hundreds of millions and even billions of dollars on acquisitions.
Explore the best, most optimal architectures for intelligent storage and how these systems improve storage performance/utilization to help get more bang out of your data set buck.
Columns in this issue
VMware's support of NVMe-oF means organizations might be able to significantly improve the performance of their application environments without changing any data center hardware.
Open source tools like Presto persist low-cost unstructured object data stores while still making information accessible through structured data access tools such as SQL.