Hewlett Packard announces Zerto acquisition and $2 billion NSA GreenLake contract

Hewlett Packard Enterprise (NYSE: HPE) has announced the acquisition of cloud data protection and management leader Zerto for a cash consideration of $374 million. This acquisition gives HPE’s GreenLake edge-to-cloud platform a proven solution in the burgeoning data security industry. Further, it will propel HPE’s storage operations into a software-defined, cloud-native data services enterprise.

HPE acquires Zerto for $374 million

SVP and General Manager HPE storage Tom Black said:

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“Data is the most critical asset and is essential to operate in this new digital economy. Our customers continue to face complexity in managing and protecting their data. Zerto’s best-in-class talent and technology expands HPE’s data management and disaster recovery capabilities, giving customers the ability to protect their data and recover in minutes from ransomware attacks.”

Black added:

“We are thrilled to welcome Zerto to the HPE family.  Together, we will accelerate innovation and scale these offerings to help our customers manage and protect their data from edge to cloud.”

Notably, Zerto’s cloud data protection and management software will continue to be available as a stand-alone offering as well as via Data Services Cloud Console and HPE GreenLake platform.

The latest acquisition is expected to contribute more than $130 million in operations cash flow at software operating profit, expedite HPE’s ambition, and profitably drive elevated amounts of recurring revenue. Starting in FY 2023, Zerto will be accretive to earnings and non-GAAP operating profit.

HPE awarded a $2 billion contract to collaborate with NSA

The company had also announced that that it has received a $2 billion ten year contract to be leveraged in partnership with the National Security Agency to offer HPE’s high-performance computing tech as a service via the HPE GreenLake platform

HPE’s HPC and Mission Critical Solutions SVP and General Manager Justin Hotard said:

“Implementing artificial intelligence, machine learning and analytics capabilities on massive sets of data increasingly requires High Performance Computing (HPC) systems. Customers are demanding HPC capabilities on their most data-intensive projects combined with easy, simple, and agile management.”

Thanks to the alliance, the NSA will be able to more efficiently harness rapidly rising data and AI needs to develop insights and analysis with optimal performance. Hotard added

“By using the HPE GreenLake platform, which delivers secure on-premises solutions as a service, the National Security Agency (NSA) is gaining industry-leading HPC solutions to tackle a range of complex data needs, but with a flexible, as a service experience.”