HP shores up enterprise portfolio

HP is to buy Opsware and Neoware Inc to boost its enterprise offerings

HP has announced two acquisitions which it hopes will boost its enterprise offerings.

The company is to buy Opsware for $1.6bn and Neoware Inc for $214m.

California-based Opsware produces software to automate data centre operations with the aim of reducing complexity and operating costs. The company is chaired by Netscape co-founder Marc Andreeson.

HP hopes to insert Opsware's products into its Business Technology Optimization (BTO) offering which includes elements of previous HP acquisitions such as Mercury Interactive and Peregrine Systems.

The company hopes that the acquisition will fill a key void in its BTO suite, namely the ability to manage and streamline data centre operations.

"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," said Ann Livermore, executive vice president at HP's Technology Solutions Group.

HP has similarly high hopes for its other acquisition. Neoware produces hardware and software for virtualisation and thin client systems.

Thin clients are small network connected machines that act as terminals, accessing a remote server for major computing tasks. They are often combined with virtualisation systems to create remote desktop environments.

HP hopes that the move will make it a heavyweight in the thin client field.

"Thin clients are an important component in today's overall computing strategy and play a critical role in HP's virtualisation strategy," explained Kevin Frost, vice president of HP's business desktops and Personal Systems Group.

"Acquiring Neoware confirms our commitment to thin client computing and client virtualisation solutions."

Both acquisitions are expected to close by the end of the year.