M&A time: HPE buys SGI, mostly for the big data analytics appliances

I do expect more consolidation in this space. There aren’t many players doing what SGI (and the day job) does. The story is here. The interesting thing about this is, that this is in the high performance data analytics appliance space. As they write:

12-16% CAGR for data analytics, which I think is low … . And the point they may about the data explosion is exactly what we talk about as well. I’ve written about this in the past, with the cloud model (ultra cheap/deep/inefficient, scale performance by throwing incredible amounts of hardware at a problem … at a fairly sizeable cost, even if it is OpEx), or … far more efficient, far faster, better designed systems that can provide unapologetic massive firepower efficiently, so you need far … far less hardware to accomplish the same thing, at a corresponding savings in CapEx/OpEx. There aren’t many players in this space, so lets see what else happens.