HP is on a big M&A buying spree in Big Data or information infrastructure.  According to my sources close to HP, they are going to go on a massive buying spree.  Great news for startups in the data field which we created and highlighted on SiliconANGLE.tv at the O’Reilly Strata conference.

This week we saw the first of HP data acqusitions where they announced the acquisition of Billerica Massachusetts startup Vertica for an undisclosed cash sum.  Vertica raised over $30 million in venture capital from firms NEA, Kleiner Perkins Caufield & Byers, Bessemer Venture Partners, and Highland Capital.

I spoke with an HP spokesperson who confirmed to me that HP will be continuing the investment in information infrastructure or big data.  Here is the interaction I had with an HP official

John Furrier: "Can you confirm that this is the first step of larger investments in analytic infrastructure around information management?"

HP Official: "The proposed acquisition of Vertica represents continued investment in enterprise information optimization and will help organizations rethink how information is gathered, stored, and used—harnessing the power of information and ensuring its integrity and protection while delivering it in the context of the enterprise."

Translation: "we (HP) will be going on a buying spree because our CEO gets the future value of the consumer market, converged networking, and mobile."

My Angle: This means that HP’s new CEO Leo Apotheker wants information to be at the center of their entire product strategy – that’s software…expect to see more and more investments from HP in data and software with an initiative for an appliance.  This is clearly the direction for what I’m calling Information Infrastructure – something completely different than data warehouse.  Examples in the market today worth noting is a company called Clickfox – a successful growing startup that is using information infrastructure (data) to provide a business decision engine for companies like Sprint.

It’s clear that HP’s new CEO wanted to establish a software strategy that was grounded in "data analytics".  What’s clear with the Vertica deal is that this isn’t a Data Warehouse play for HP.  It’s about a n information (Data) infrastructure play.  This will force HP to execute their vision on the enterprise information management plans.

This will give HP a great set of customers and a Linux play to counter the lack of momentum with Microsoft’s PDW parallel data warehouse product -which according to insiders has been a "dog with flies" causing hardware guys like HP to be on hold.  Plus with the sunset of HP NeoView product the Vertica is a good deal for HP.

Why Vertica?

• HP considers Vertica to be a “leading technology to enable real-time business analytics.”
• HP values Vertica’s “load and go/plug and play” ease of use.
• Customer acquisition: Vertica came with a roster of 300 customers for real time analytics, which HP values enough to mention in their talks with us.
• Compatible Cultures: Vertica was already an integrated partner with HP.

HP did not announce a price but confirmed that they did pay cash.  It’s clear that it wasn’t a lot of money given the price of what others are paying for big data plays.  EMC recently paid billions for Isilon and Greenplum.  HP didn’t want to say how much they paid, but that “the deal was all cash, and is not material to HP from a financial reporting perspective.”

No word on a Vertica Appliance or other software bundling. Vertica will be available through normal HP Sales and Service channels.

Analyst Angle: Dave Vellante, founder of research firm, Wikibon.org has some good angles on this HP Vertica deal.  Dave’s angles are:

• Biz Angle:  There’s been a run on ‘next gen’ database companies. HP claims it is #6 WW in the software space. This is woeful and Leo Apotheker clearly has an agenda to beef up HP’s  software IP.
• Market Angle: For HP, this is a critical piece of intellectual property that will allow it to integrate with its hardware and compete with Oracle.
• Tech Angle: Vertica has also pushed databases in VMware and  has this thing called project cumulus which delivers  database bursting aruss physical, virtual and cloud.

Company Press Release

PRESS RELEASE
HP (NYSE:HPQ) today announced it has signed a definitive agreement to acquire Vertica, a privately held, real-time analytics platform company based in Billerica, Mass. Terms of the deal were not disclosed.

The acquisition of Vertica will enhance HP capabilities for information optimization, adding sophisticated, real-time business analytics for large and complex sets of data in physical, virtual and cloud environments. Vertica’s platform helps customers analyze massive amounts of data simply, quickly and reliably, resulting in “just-in-time” business intelligence.

“In today’s highly competitive environment, customers need the ability to manage the increasing amounts of data and growing streams of information with more flexible, more dynamic architectures,” said Shane Robison, executive vice president and chief strategy and technology officer, HP. “Vertica’s unique platform combines simplicity with industry-leading performance, allowing HP to leap ahead of the industry in the race to analyze massive amounts of data.”

“By combining Vertica’s offerings with HP’s brand and global reach, customers will benefit from the commitment, expertise and resources from the largest technology company in the world,” said Christopher Lynch, president and chief executive officer, Vertica. “Combined with HP, we will be able to better help customers develop flexible business performance solutions that improve decision making and streamline business processes.”

HP expects the acquisition to close in the second quarter of its fiscal year 2011. After the acquisition closes, Vertica products will be available through HP sales and service channels.