Cisco Buys Hyperconverged Infrastructure Software Firm Springpath For £250m

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.”

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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