HP's Mercury buy only tip of wide-ranging software plans - Network World

Skip Links

DNSstuff.com
Get information about your IP
IP Information
50+ On-demand DNS and network tools

Network Management

Videos

rssRss Feed
Get instant email notification when white papers, webcasts, executive guides are added to our library.  Stay informed and up-to-date with the latest on IT Technologies with Network World's Resource Alerts.
Audio

Interop emphasizes savings; Rackspace launches cloud storage. Listen now!

Network World 360

Summer blockbuster movie preview. Listen now!

Network Downtime

Additional Resources

RSS

FEATURED REPORTS

Executive Guide: Storage Heats Up HP

Get the latest on storage technologies that allow IT professionals to better cope with new IT demands. Learn how storage technologies can help you successfully tackle e-Discover, regulatory compliance, green data center initiatives and the data explosion. Get all the details now.

RSS

FEATURED WEBCASTS

Reduce the Complexity and Cost of Windows Server Consolidation in Six Modules Novell

Watch this webcast to learn in six modules how to more cost effectively consolidate your Windows servers with virtualization. This unique program allows you to pick and choose which of the six modules you would like to view or watch the entire webcast at once. Topics covered: Performance, Use Cases, Enterprise-level Support, Managing Windows Workloads, Setup and Configuration and The Future. Find out how you can simplify server consolidation within your organization today. Register below to learn more and be entered to win an Archos 605 Portable Media Player.

IT Buyer's Guides

View All Buyer's Guides

Free Newsletters

Sign up and receive the latest news, reviews and trends on your favorite technology topics

Save The Date!
What They Are Saying

So the line of defence remains is "PIN NUMBER" Wowww what a strong security ? HSBC , invest some money...- Anonymous

Join the Discussion

Partner Content
NetScout

NetScout is one of the world's premier providers of integrated network and application performance management solutions.

www.netscout.com

Implementation Best Practices

This guide provides a comprehensive checklist for implementing a proactive Network and Application performance management solution.

Learn More Now.

Reduce Time to Troubleshoot

Discover a unique and powerful approach to reducing MTTR in complex environments.

The KPI to Flow
to Packet Process.

Know What's on Your Network?

Distinguishing Business Use of the Network from Recreational Use.

Read the Whitepaper.

HP's Mercury buy only tip of wide-ranging software plans

By Jennifer Mears , NetworkWorld.com , 07/26/2006
  • Social Web 
  • Email 
  • Feedback 
  • Close

For the past couple of years, HP has been snapping up software companies, but its plans to acquire application management specialist Mercury Interactive should give the systems vendor the boost it needs to convince customers and the industry that it is serious about software, analysts say.

The $4.5 billion deal also should bring HP and Mercury Interactive customers a more complete management story as they look to better control applications from development to deployment to operations in more dynamic, flexible data centers, analysts say.

"HP's strategy for becoming a powerhouse in network and systems management and their focus on the adaptive enterprise where you use technology to optimize business operations has got an excellent foundation," says Richard Ptak of Ptak, Noel & Associates. "The problem they've had in the last couple of years has been the [lack of] credibility they have as a software provider."

HP has spent the last few years snapping up smaller software management firms such as Peregrine Systems, Novadigm and Consera Software, but none have been large enough to significantly impact the company's software revenue, Ptak says.

"The Mercury acquisition really bumps up HP's software business to where a significant portion of their revenue will now come from software," he says.

In 2005, HP reported net revenue of $1 billion from its software business. The Mercury buy is expected to increase that to more than $2 billion annually, HP says.

"HP traditionally is known as a hardware powerhouse and ... there have been questions raised about how serious they were about being in the software business since software represented a very small portion of their annual revenue," Ptak says. "This acquisition changes that."

More than the dollars, the acquisition also brings HP management tools that it had previously lacked in its OpenView portfolio, specifically in the area of application development and testing. Mercury's expertise in this area helps lift HP into a better position to compete with IBM, which has long had the kind of end-to-end management capabilities that HP now can offer, analysts say.

1 | 2 |  Next >
Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to moderator approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.
First Name
Last Name
E-mail
Zip Code