HP Buys Software Development Firm

HP just announced that it will acquire the software development firm Opsware Inc, having today signed the definitive agreement of purchase. Opsware is a data center automation company that will enhance HP's portfolio of Business Technology Optimization (or BTO for short) for $1.6 billion in cash. Opsware, co founded by Web entrepreneur Marc Andreessen, became known in the U.S. for software development centered around data center administration tasks, like security patches installation and operating system deployment on large number of desktop computer systems or servers.

According to HP, the Opsware company is just the latest in a series of strategic software acquisitions, including Mercury Interactive and Peregrine Systems, which expands HP's leadership in BTO. "The acquisition of Opsware is intended to enable HP Software to help our customers resolve one of their critical pain points: controlling the increasing complexity and cost of managing the data center," said Thomas E. Hogan, senior vice president, Software, HP. "We expect Opsware's outstanding team will help us drive leadership across our BTO offerings." Opsware Chief Executive Officer Ben Horowitz said, "We are about to see one of the biggest application and infrastructure build-outs in history. The addition of Opsware to the HP Software portfolio will make HP the obvious choice for powering the next generation of data centers to come."

By acquiring the Opsware company, HP hopes to extend its own software capabilities and automate its entire data center, from initial provisioning of servers, networks and storage devices to much complex ones like managing on the fly changes and all this with the aid of integrated process automation, removing much of the inherent latency of most IT environments. Following the signing of the transaction, Opsware will become part of the HP Software business. At that time, HP also expects to appoint Ben Horowitz to lead the Business Technology Optimization organization reporting to Thomas E. Hogan, senior vice president, HP Software.

"Following last year's acquisition of Mercury Interactive, the addition of Opsware is expected to enhance HP's standing as one of the world's leading software companies and drive profitable growth for HP," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "With this strategic acquisition, I believe customers will see HP as the clear vendor of choice to help them transform how they manage and automate IT to drive better business outcomes."