SGI is to be acquired by Hewlett-Packard Enterprise for $275 million. The idea is to boost the Big Data analytics and high-performance computing. Since it was formed in the breakup of the old Hewlett-Packard a year back this is the latest surprise development at HPE among a few other big changes. This deal will help make the company a big player in the growing part of the server market, high-performance computing.
SGI has about an 1100 employees working worldwide. The company registered an $11 million loss on a $533 million revenue for the last fiscal year. Antonio Neri, head of HPE’s Enterprise group said in a comment, including the life science, government, research and education, supercomputing and manufacturing the SGI acquisition will help HPE to strengthen its position in the high-growth big-data analytic segment.
Like conventional technology companies HPE has been struggling to embrace the new business model of cloud computing since its split from the HP’s printer and PC group. SGI’s NUMAlink interconnect is part of HPE’s Integrity servers earlier. The company has announced plans to spin off most of its IT services division into a new company jointly owned with CSC and also killed its public cloud services, after all, that it is uncertain that if the acquisition of SGI will help HPE in any way.