Rumor: Huawei to Buy HPECould be great acquisition for China manufacturer to push storage in USA
By Jean-Jacques Maleval on 2016.12.05
"At last Open OpenStack Summit in Barcelone, a rumor indicated that Huawei Enterprise was interested by HPE to expand in USA," was written in an article from French reliable publication Le Monde Informatique and IDG NS.
Concerning storage, Huawei, with excellent products, never was able to sell in USA because it's a Chinese company. For security reasons, American companies do not want to buy platforms from this country.
If Huawei get HPE, all will change and it could be a great acquisition for Huawei and a huge deal between two storage giants.
Also with such a vendor, HPE 3par could explode in China.
Huawei has the financial resources for such a deal. It's an enormous private company apparently fully owned by its employees. Its size is not so far from HPE. Mainly in telecom and now a strong wordlwide force in smartphones, it registered in 2014 $46.5 billion in revenue with $4.5 billion net profit - last known figures. HPE announced $50 billion in sales in FY16. For storage only, revenue was $3.1 billion for HPE in FY16 and $534 million for Huawei in 2004.
But we doubt that the US Federal Trade Commission will clear easily a transaction where a Chinese entity acquires such a big US IT company.
We note also that it was announced in recent news that SimpliVity, rumored to be acquired by HPE, and Huawei join forces to deliver hyperconvergence around the globe.