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HPE Completes Silver Peak SD-WAN Acquisition

David Hughes, CEO, Silver Peak Systems

Hewlett Packard Enterprise has completed its acquisition of Silver Peak, a Software-Defined Wide Area Network (SD-WAN) company, for $925 million.

This was M&A deal number 280 that ChannelE2E has covered when the deal was initially announced in July 2020. See the full M&A deal list here.

Silver Peak will become a part of Aruba, an HPE company. Also, Silver Peak founder and CEO David Hughes will join HPE as the senior vice president of the WAN business within Aruba, according to HPE.

The acquisition will strengthen Aruba ESP (Edge Services Platform) with a comprehensive edge-to-cloud networking solution covering all aspects of wired, wireless local area networking (LAN) and wide area networking (WAN), HPE said in a statement.

Aruba’s all-in-one SD-Branch portfolio and remote worker solutions, combined with Silver Peak’s self-driving SD-WAN and WAN optimization solutions, will give customers and partners better leverage into a competitive market, the companies said.

The new Aruba business will position HPE to better compete with AryakaCisco SystemsFortinetNuage Networks from NokiaVersa Networks, and VMware SD-WAN by VeloCloud, among others, as ChannelE2E reported in July when the acquisition was announced.

HPE is attempting to diversify beyond its traditional focus on data center hardware, and help its partners and customers capitalize on the $1Billion+ SD-WAN market. By combining Silver Peak’s SD-WAN with Aruba’s SD-Branch solutions, partners and customers can simplify branch office and WAN deployments for remote workforces and cloud-connected distributed enterprises, the companies said.

HPE Silver Peak Acquisition: Executive Commentary

Antonio Neri, CEO, HPE

Keerti Melkote, president, Intelligent Edge for HPE, founder, Aruba Networks

“WAN transformation is a key component of HPE’s Intelligent Edge and edge-to-cloud vision and growth strategy,” said Antonio Neri, president and CEO of HPE. “Armed with a comprehensive SD-WAN portfolio with the addition of Silver Peak, we will accelerate the delivery of a true distributed cloud model and cloud experience for all apps and data wherever they live.”

“I am very excited to welcome the Silver Peak team to the Aruba family,” said Keerti Melkote, president of Intelligent Edge for Hewlett Packard Enterprise and founder of Aruba Networks. “With the evolving nature of the hybrid workplace, enterprises are looking to extend connectivity to branch locations and enable secure work-from-home experiences. By combining Silver Peak’s advanced SD-WAN technology with Aruba’s SD-Branch and remote worker solutions, customers can simplify branch office and WAN deployments to empower remote workforces, enable cloud-connected distributed enterprises, and transform business operations without compromise.”

“I look forward to leading the new WAN business unit within Aruba and accelerating our customers’ edge-to-cloud transformation initiatives,” said David Hughes, founder of Silver Peak and senior vice president of the WAN business at Aruba. “Digital transformation, cloud-first IT architectures, and the need to support a mobile work-from-anywhere workforce are driving enterprises to rethink the network edge. The combination of Silver Peak and Aruba will uniquely enable customers to realize the full transformational promise of these IT megatrends.”

HPE will discuss how the integration of Silver Peak will create value and enhance growth and profitability at its Securities Analyst Meeting on October 15, 2020.

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