The market for hyperconverged products was estimated to be approximately US$2.4 billion in 2016 and was expected to grow at a compound rate of 25% to nearly US$6 billion by 2020, HPE said in a media release about the acquisition.
It said HPE's infrastructure, automation and cloud management software plus SimpliVity's software-defined data management platform would help deliver the lone "built-for-enterprise" hyperconverged offering.
SimpliVity is a private company that was founded in 2009 and is headquartered in Westborough, Massachusetts.
"More and more customers are looking for solutions that bring them secure, highly resilient, on-premises infrastructure at cloud economics. That's exactly where we're focused."
Hyperconvergence refers to the practice of consolidating IT components into a single optimised platform with centralised management. It enables increased use and lower costs.