HPE to Buy Cloud Cruiser

Hewlett Packard Enterprise (HPE) is on an acquisition streak, as it has acquired a cloud metering and billing company called Cloud Cruiser.  The financial terms of the deal are not being disclosed, and the acquisition is expected to be complete by the end of this year. This is the second acquisition that HPE has made in a week, with the earlier one being its acquisition of a company called SimpliVity for a whopping $650 million.

Founded in 2010, Cloud Cruiser provides analytics and software to help vendors measure the cloud services used by businesses and other IT departments. In other words, this company provides metering software to track the use of public and private cloud services. The idea behind this software is to offer an accurate picture of the scope of cloud services currently used by different companies, and their current and future need. With this information, service providers can determine the potential gap that exists between their client’s current usage and needs, and help to fill it with the right services.

This Northern California company has so far obtained a funding of around $20 million, and has an impressive list of clients that include Accenture, Microsoft, TD Bank, and Ford. HPE is in fact, Cloud Cruiser’s largest client, accounting for a major chunk of its revenue. This company’s cloud metering service is used by HPE’s Flexible Capacity arm of business, that allows customers to manage their own data centers with a pay-as-you-go model. However, the rising costs of Cloud Crusier was proving to be expensive for HPE, so it’s little surprise then that HPE is acquiring this company.

If you look closely, HPE stands to gain much in this acquisition. Firstly, HPE doesn’t have to pay money any more for the cloud metering services, and this is definitely a smart way to save money. Secondly, this acquisition fits perfectly with HPE’s Flexible Capacity business, and it can extend this service in a more effective manner for its customers. Currently, HPE offers a pay-as-you-go model, so Cloud Cruiser’s service can sure help to meter and bill more efficiently, not to mention the analytical information that can be gained from it. Thirdly, HPE is already embarking on a hybrid cloud strategy, and this is most evident with its acquisition of SimpliVity. In this sense, this acquisition is expected to give a further boost to HPE’s strategy.

On completion of this acquisition, Cloud Cruiser will become a part of HPE’s Data Center Care portfolio in its Technology Services Support division. The co-founder and CEO of Cloud Cruiser, David Zabrowski, will join HPE and will report to Scott Weller – the SVP of Technology Services Support. Coincidentally, Zabrowski served as VP and General Manager of HPE from 1997 to 2002. So, this will be a reunion of sorts for the CEO too.

Overall, this acquisition will be a good one for HPE as it can further its growth strategy as well as help it to save costs. As for Cloud Cruiser, this is a good end.

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Lavanya
Lavanya Rathnam is a professional writer of tech and financial blogs. Creative thinker, out of the boxer, content builder and tenacious researcher who specializes in explaining complex ideas to different audiences.
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