HP buys Eucalyptus as it bets on open cloud future

HP is acquiring open source software specialist Eucalyptus that helps build private and hybrid enterprise clouds as it bets on open cloud future

HP is acquiring open-source software specialist Eucalyptus, which helps build private and hybrid enterprise clouds. The move comes as HP bets that the “cloud of the future will be open source”.

Following the completion of the deal, the financial terms of which were not disclosed, Eucalyptus chief executive Marten Mickos will lead HP’s cloud division.

An advocate of open-source cloud, Mickos will become senior vice-president and general manager of the HP cloud business, reporting to Meg Whitman, HP's chairman, president and chief executive.

He will be responsible for strengthening and accelerating HP’s strategy, which Whitman says is to “help businesses build, consume and manage open-source hybrid clouds”.

"Enterprises are demanding open-source cloud solutions," said Mickos.

He will be involved in building the HP Helion portfolio, which is based on OpenStack technology, to give customers more choice and greater control of private and hybrid cloud systems.

HP made its biggest push into cloud computing in May when it launched Helion. HP Helion folded in existing HP cloud offerings with new open-source products, on which the company is betting its future. 

HP is also investing $1bn in OpenStack over the next two years. The company plans to provide OpenStack-based public cloud services in 20 datacentres worldwide over the next 18 months.

“The future of the cloud is open source, and this transaction underscores our commitment to helping customers build enterprise-class, open clouds their way," said HP CTO Martin Fink.

HP’s Eucalyptus investment comes as analyst firm 451 Research predicted that the market for OpenStack-related products and services will quadruple in size by 2018, crossing $3bn in revenue.

"The open-source platform is increasingly a consideration for private cloud deployments, and the business models in the ecosystem continue to evolve," said analyst Al Sadowski.

OpenStack is rapidly becoming one of the most widely deployed cloud platforms because enterprises are seeing their IT future as hybrid and OpenStack is compatible with enterprises’ existing IT investments,” said OpenStack co-founder Mark Collier.

“Enterprises want cloud computing environments that are open, interoperable and secure,” said Simon Hassall, go-to-market strategist for HP Helion OpenStack. “With OpenStack-based deployments, customers gain early adoption, flexibility and cost control, while avoiding supplier lock-in.

“OpenStack gives customers the opportunity to be in the driver's seat when it comes to innovation – they are active protagonists in their organisations' cloud journeys,” he added. 

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