HP to conclude $100M deal to bag Eucalyptus Software

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After a failed $11 billion attempt to buy out Britain’s Autonomy Plc in 2011, Hewlett-Packard has trained its guns on a software start-up called Eucalyptus Software, in what is considered to be a rare strategy of HP.

The start-up is in the business of providing open-source software aimed at cloud and internet computing. The deal is likely to be completed in the fourth quarter this year.

Sources close to the company say that the price tag is close to $100 million. However, the companies are yet to disclose the financial terms of the deal.

Current Chief Executive Officer Marten Mickos of Eucalyptus, a known advocate for open-software is expected to joint HP as a senior vice-president in charge of cloud business and is expected to report to CEO Meg Whitman of HP.

Speaking about the deal, the current CEO of Eucalyptus said both the companies share a common vision for the future of cloud in the enterprise, that are demanding open source cloud solutions. He said that he is thrilled to have this opportunity to grow the HP Helion portfolio and lead a world-class business that delivers private, hybrid, managed and public clouds to enterprise customers worldwide.

Market watchers say that HP’s decision to embrace open source is the right thing for the company to do. Current indications are that more corporate are turning toward open-source technologies, especially when it comes to cloud and data storage thereby relieving major users from getting stuck with proprietary software.