EDS finishes Loudcloud buy

Electronic Data Systems Corp. has completed the acquisition of the Web-hosting business from Loudcloud Inc., the company announced Aug. 16.

EDS of Plano, Texas, agreed June 17 to pay $63.5 million to Loudcloud of Sunnyvale, Calif., for the purchase of its Web-hosting business and for a three-year license to use its Opsware information technology automation software. The deal closed two weeks ahead of schedule, according to EDS.

EDS, which said it picked up 50 enterprise Web-hosting clients in the deal, will begin deploying Opsware across its worldwide data center network immediately.

The deal further strengthens EDS' leadership position and commitment to the Web-hosting market, said Jeff Kelly, president of EDS Hosting Services.

"By fully leveraging Opsware throughout our global data center network, we expect to build on our existing capability to deliver computing on-demand while continuing to provide the highest levels of data integrity and security," he said.

The licensing agreement provides the foundation for immediate, widespread automation of service delivery and applications management for EDS' Web hosting business, and eventually throughout EDS' network of more than 50,000 servers in 14 major data centers and 140 client-owned regional data centers worldwide.

By deploying the Opsware automated solution throughout the company's global data network, EDS expects to generate more than $100 million in savings over the term of the licensing agreement.

About the Author

William Welsh is a freelance writer covering IT and defense technology.

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