Hewlett Packard Enterprise’s $650 million acquisition of SimpliVity last week highlights the growing popularity of consolidated computing systems that CIOs are adopting as an alternative to public cloud services.

SimpliVity is a market leader in hyperconverged systems, which bundle computing, storage and networking are bundled onto the same server. Such systems, once considered a niche market in a rapidly shrinking sector for on-premises technology, are rapidly gaining traction.

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Hyperconvergence in high demand