Hewlett-Packard acquires private-cloud software player Eucalyptus

HP wants to provide a broad range of cloud computing services and Eucalyptus Systems is a clear move in that direction

HP wants to provide a broad range of cloud computing services and Eucalyptus Systems is a clear move in that direction

On Thursday, Hewlett-Packard announced a deal to acquire Eucalyptus, a developer of open source software for building private and hybrid enterprise clouds. While HP did not disclose financial terms of the deal, the acquisition aims at ramping the California company’s efforts in the growing field of cloud computing.

Eucalyptus, which is based in Goleta, California, is a company that produces software for private cloud computing that are compatible with AWS APIs. Similar to those of Amazon, the company provides hybrid cloud computing services, which means that clients can shift workloads back and forth between their data centers and the AWS EC2 public cloud.

Amazon didn’t offer any private cloud tech, until CIA made a huge offer. Amazon specially constructed a $US600 million data center for the intelligence agency.

The battle seems to be intensifying as cloud computing is becoming more and more common. Clearly, open source fans should be thrilled by this acquisition. Even the corporate world seems to be turning to open source technologies now. Companies are reluctant to possibly get stuck in a closed source when it comes to cloud and data storage. Incorporating open source might allow greater flexibility and control. The hybrid model provides advantages in data management for both the provider and the client as well.

HP wants to provide a broad range of cloud computing services and Eucalyptus Systems is a clear move in that direction, as the company provided cloud services compatible with Amazon’s.

Acquiring Eucalyptus seems to be HP’s first major investment in cloud computing. In May, the company announced that it plans to invest about $1 billion in cloud computing, a new unit called Helion run by Martin Fink.

As part of this acquisition, Eucalyptus Chief Executive Officer (CEO) Marten Mickos will join HP as senior vice president and general manager of the Cloud business, reporting directly to Meg Whitman, chairman, president and chief executive officer of HP. The move is important for Eucalyptus CEO as well. From now on, Mickos will lead the HP Cloud organization in expanding the HP Helion portfolio, which is based on OpenStack technology.

“Eucalyptus and HP share a common vision for the future of cloud in the enterprise,” said Mickos. “Enterprises are demanding open source cloud solutions, and I’m thrilled to have this opportunity to grow the HP Helion portfolio and lead a world-class business that delivers private, hybrid, managed and public clouds to enterprise customers worldwide.”

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

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