Silver Peak acquired by HPE

SD-WAN Consolidation Continues in 2020

Hewlett Packard Enterprise (HPE) announced the acquisition of SD-WAN provider Silver Peak for around $925 million or around 6x Revenue. This acquisition will combine their networking unit with Aruba to address the changing SD-WAN Landscape. We’ve been keeping an eye on the consolidation factors within these categories all year. This acquisition is likely not the last major consolidation factor we’ll see this year. Aryaka continues their massive media push for a likely fall IPO. Key factors for this consolidation include:

• Aruba and Silver Peak will be combined to focus on cloud based SD-WAN
• Silver Peak takes a simple “self driving” WAN approach that will decrease costs for legacy network organizations.
• Silver Peak will compliment the existing Aruba network solutions.

Antonio Neri (CEO of HPE) is quoted as saying, “With this acquisition we are accelerating our edge-to-cloud strategy to provide a true distributed cloud model and cloud experience for all apps and data wherever they live.” HPE acquired Aruba Networks in 2015 to leverage enterprise mobility.

“Today’s announcement comes at a unique moment for our customers, who are grappling with business recovery in the wake of the pandemic,” said Keerti Melkote, president of Intelligent Edge for Hewlett Packard Enterprise and founder of Aruba Networks. “The need for edge-to-cloud architectures has never been more relevant as enterprises look to extend connectivity to branch locations and enable secure work-from-home experiences. Silver Peak’s technology transforms legacy WAN architectures to self-driving WANs, which is a perfect fit with Aruba’s cloud-native, AI-driven Edge Services Platform. Together, we will be able to meet these needs with critical connectivity, security, and AI capabilities to drive the next generation of Edge-to-Cloud transformation.” 

This appears to be a big win for investors as they secured $175m in total (with the largest chunk of around $90 million in 2018.) TCV looks poised to make decent return on their investment very quickly. TCV is heavily invested in a number of digital transformation and SaaS companies. This type of return during this climate makes sense for the organization.

Details about Silver Peak are listed Below

Market Share: 7.50 %

Revenue Estimates: $200 Million

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Silver Peak

Silver Peak

SD-WAN Technical Details

SD-WAN Deployment Types:

• On-Premise (Physical)
• Virtual
• Cloud (AWS)
• Cloud (Azure)

WAN Optimization: Yes

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Silver Peak

WAN Architecture:

• Hardware
• Software

Managed Firewall:

• Basic
• Advanced (3rd-party)