Hewlett Packard Enterprise has announced that it is acquiring cloud disaster recovery startup Zerto. HPE is paying USD 374 million in cash for acquiring the startup. Interestingly, the development comes at a time when the company has disclosed the news about it acquiring the artificial intelligence startup Determined AI. The deal is expected to add over USD 130 million to the overall revenue of the PC giant. With the signing of the deal, the management team of the startup will work with HPE’s Storage business and will report to HPE general manager and SVP Tom Black. Zerto has headquarters in Herzliya, Israel, and Boston. The startup was founded in 2009 and has over 9,000 customers. Commenting on the acquisition, HPE President and chief executive officer Antonio Neri said that Data is now the most critical asset, and protecting it is a big task.
“Data is growing exponentially and is at the edge. In such a scenario, organizations are facing a tough time in managing and protecting their data. Protecting software and leading cloud data management of Zerto will expand HPE GreenLake cloud data services. This will allow customers to guard their data and act swiftly and instantly.” Zerto will be available to customers through the highly successful cloud service of GreenLake. The startup is getting popular among customers as it helps them recover in minutes. It offers solutions in situations like cyberattacks and ransomware. Experts say that it is a strategic development for the data storage industry.
Zerto also easily replicates and migrates data between different cloud services. It provides different kinds of data management and that too in diversified settings. Earlier, the startup had raised USD 53 million in financing. The deal between HPE and Zerto is expected to be closed in the fourth quarter of this fiscal year. The deal is crucial as IT research firm IDC has already predicted that that market of data protection as a service is expected to be double by 2024. The market was USD 7.7 billion in 2020 and is predicted to grow to 15.3 billion in the next 3-4 years. This will be an annual increase of 19 percent. Tom Black, senior vice president, and general manager of HPE Storage said that data protection is top of mind. “Customers continue to face major issues. This is mainly because of the complexity of the nature of data management. The situation is the same across hybrid and multi-cloud environments. Zerto will strengthen the position of HPE in solving these issues of customers. The deal will help us become a leader in data management and protection,” Black said. After the transaction, Zerto will be organized under the HPE storage.