Loudcloud has completed the sale of its web-hosting business, and will now focus on sales of its automation software under the renamed banner of Opsware.
Internet pioneer Marc Andreessen made millions from his involvement with Netscape. But his involvement in Loudcloud failed to catapult the web hosters to success.
Opsware's automation software, originally developed to run the Loudcloud data centres, was aimed at enabling businesses to reduce the administrative burden of managing servers by automating their provisioning and configuration.
Opsware chief executive Ben Horowitz said that potential customers would have a web-based architecture and over 100 servers to manage.
"That sort of IT environment is complex and very labour-intensive. By automating the management of this, the cost savings can be enormous," he said.
During the 11 September attacks, news site USA Today used a Loudcloud-hosted version of the automation software to double its capacity, as people poured online for the latest news. "We were running our business on it. We've proven it works," Horowitz said.
Outsourcing giant EDS last week completed the acquisition of Loudcloud's managed hosting business, in a deal worth $63.5m. The deal includes a three-year licensing deal for the Opsware automation software.
The deal paves the way for EDS to roll out the automation software across 50,000 servers in the company's worldwide data centres.
Opsware, meanwhile, has earmarked financial services and public sector as strong potential markets.
"Financial services is a good market for us, as they typically already have invested in an internet architecture. Government departments are also good, as they have continued to spend," Horowitz said.
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