SAN JOSE, Calif.–(BUSINESS WIRE)–Hewlett Packard Enterprise (NYSE:HPE) today announced that it has entered into a definitive agreement to acquire Silver Peak, an SD-WAN (Software-Defined Wide Area Network) leader, in a transaction valued at $925 million. Silver Peak will be combined with HPE’s Aruba business unit and will extend Aruba’s technology leadership in the large and fast-growing SD-WAN space.
“HPE was an early mover in identifying the opportunity at the edge and that trend is accelerating in a post-COVID world”
Massive Growth in Connected Devices and Cloud Requirements are Accelerating Demand for Complementary SD-WAN Solutions
As applications continue to move to the cloud, remote working and mobile employees are on the rise, and billions of IoT devices are added to the network, the SD-WAN market is experiencing significant growth. That is expected to continue, with 650 Group forecasting that the market for SD-WAN will grow from $2.3B in 2020 to $4.9B in 2024, a +20.5% CAGR.
Legacy WAN architectures are no longer viable and incur relatively high costs, compelling enterprises to invest in SD-WAN technology to ensure secure, scalable, and efficient connections from the edge of their network to a diverse mix of on-premises and cloud-based endpoints. The combination of Aruba’s all-in-one SD-Branch strategy and remote worker solutions with Silver Peak’s SD-WAN and WAN optimization offerings will allow HPE to better address a greater set of customer requirements and capitalize on this market opportunity.
A Leader in SD-WAN and WAN Optimization Technologies
Silver Peak is a leader in the SD-WAN market with more than 1,500 production SD-WAN customers around the world. The company helps enterprises and service providers quickly migrate to secure enterprise-grade SD-WAN connectivity, while dramatically improving application performance and lowering connectivity costs. Powered by Silver Peak’s SD-WAN edge platform, customers can achieve dedicated WAN-like performance while running all cloud applications and services via broadband access. Silver Peak also enables freedom of choice to leverage best-in-class technologies from a broad range of ecosystem partners, particularly those focused on security. Silver Peak is one of two leaders recognized in the Gartner, Magic Quadrant for WAN Edge Infrastructure, 2019 which complements Aruba’s leadership in wired and wireless networking.