 Network/Systems ManagementThis newsletter is sponsored by Akamai TechnologiesNetwork World's Network/Systems Management Newsletter, 07/30/07More on HP's big software strategyBy Denise DubieYou have to give it to HP: when company executives say they are "serious about software" they follow it up with billions of dollars in acquisitions. To be exact, the company has spent about $6.5 billion in "assembling and delivering capabilities" around its software business, according to Thomas Hogan, senior vice president of HP Software. Last week HP shocked me out of my dog-days-of-summer-slow-news mood with its announced plans to buy data center automation vendor Opsware -- and for a very pretty price: $1.6 billion Now, let me clarify: I was not shocked that companies were interested in acquiring Opsware. I had just written an entire package of stories about how automation was the next big thing on the management front and had talked to countless people about Opsware being a leader in the market. And BMC also announced it had acquired automation technology with its RealOps purchase.
I was surprised that HP, which less than a year ago completed its $4.5 billion acquisition of Mercury Interactive, was putting a lot more money down in another big software acquisition. But like I said, the technology is hot. And Opsware not only has server provisioning capabilities, but it also has network configuration technology, thanks to its acquisition of Rendition Networks. Opsware also acquired run-book automation start-up iConclude earlier this year, giving the vendor a triple play of automation capabilities. Rumors had been flying around that VMware and others were looking to acquire Opsware, which may be why HP paid a high price for Opsware and its hot technology. Opsware reported more than $100 million in revenue for 2006, that means HP paid about 16 times the acquired company's worth. Industry watchers wonder how, after paying so much, HP will get its money back and start to make a lot of money in software. "[The acquisition is an] excellent move for the future of HP Software in terms of technology. HP has spent $6 billion in two years to get a $2.2 billion software company," says Jean-Pierre Garbani, a research vice president at Forrester Research. "How they're going to get their money back is a big question, let alone how they're going to make money."
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| Contact the author: Senior Editor Denise Dubie covers the technologies, products and services that address network, systems, application and IT service management for Network World. E-mail Denise. This newsletter is sponsored by Akamai TechnologiesARCHIVEArchive of the Network/Systems Management Newsletter. BONUS FEATUREIT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE International subscribers, click here. SUBSCRIPTION SERVICESTo subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007 |
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