Under the observance of the rapid growth of demand for a more intricate data management and analytics, Hewlett Packard Enterprise announced future plans of the potential acquisition of a high-performance computing company SGI ranging around 275 dollars in total cash and debt.

Silicon Graphics Inc. was founded in 1981 garnering more than 6,500 customers, a thousand of employees and over 600 permitted and forthcoming tenants. SGI’s former chief scientist, James Mashey is entitled with the first coming up with the term, “big data.”

The acquisition of SGI is expected to conclude HPE’S first quarter of its 2017 fiscal year. This will complement its current portfolio of computing and analytics technologies for the enterprise market. HPE hopes that the SGI will boost its high-performance computing segment and maintain the continuing growth within the next three years even in its data analytics business.

The Rapid Growth of Supercomputer Users

Antonio Neri, HPE's executive vice president and general manager for the Enterprise Group, wrote yesterday in an online commentary on the company's Web site "Once the domain of elite academic institutions and government research facilities, high-performance computing (HPC) -- the use of 'super' computers and parallel processing techniques for solving complex computational problems -- is rapidly making its way into the enterprise, disrupting industries and accelerating innovation everywhere,"

“The acquisition will enable HPE to combine both companies' best-in-class portfolios, including HPE's compute solutions and SGI's in-memory, high-performance data analytics technology, to provide customers with sophisticated solutions aimed at solving the world's toughest problems” Neri added

Jorge Titinger, the CEO and president of SGI stated “The combination of the two companies will not only create ‘one of the most comprehensive suites of solutions in the industry’, but will enable SGI's offerings to reach a much wider market thanks to HPE's reach” A statement by Jorge Titinger, the CEO and president of SGI.


Organizations varying from private institutions and government agencies are

Organizations from film studios and oil companies to banks and governments are finding their operations turning massively data-heavy and complex, a progression that is controlling the developing adoption of big-data analytics and high performance computing.

SGI reportedly to have revenues of $533 million that has dominated the high-performance computing market, with clients such as The Genome Analysis Center, PayPal and the National Security Agency.

SGI as an Addition to HPE

SGI being acquired by HPE “makes a whole lot of sense," IDC analyst Steve Conway. "It really is additive to what HPE is doing today."

A high performance computing analyst, Conway said that SGI has improved "pretty remarkable" technologies with the ability for large shared memories. "For the most daunting big data procurements, nobody else passes the benchmark tests." He added.


For example, SGI’s technology can be used in the U.S Postal Service enabling it to process countless of letters and packages each day, scanning each one for postage, fraud and routing instructions in under 100 milliseconds. In over 700 million dollars, Paypal was able to save the said amount in its first two years after implementing SGI system to detect mountebank in its credit card business.

Conway said “For HPE, the addition of SGI's portfolio to its own will help the company better serve the growing number of companies in need of high-performance computing”.

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