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Wednesday, April 2, 2008

Dollars From Data Centers

In a sign that the market for cutting data center costs is hot, MC Software is buying data center automation specialist BladeLogic for about $800 million, while Hewlett-Packard is starting a data center consulting business.

BladeLogic offers software that automates the management of colocation and control of configuration changes to servers and other data center hardware. BladeLogic's revenue rose 105% last year to $62.7 million, with a $174,000 loss. BMC's paying a pricey eight times next year's estimated revenue. Last year, it acquired RealOps, a developer of software for automating IT processes, for an undisclosed sum.

HP likewise sees money to be made in the data center. Last year, it acquired Opsware, maker of data center management software, for $1.6 billion. And last month, it bought EYP Mission Critical Facilities, which specializes in building energy- and space-conscious data centers for corporate buyers.

Now HP's using that EYP know-how to launch data center consulting for companies trying to revamp their data centers. HP says its research finds that one-third of CIOs say they won't be able to afford the electricity, cooling, space, or budgets they need to continue expanding their data centers.

Most companies aren't Google or Microsoft, so they can't build a greenfield data center by a dam that gives them the space and cheap power they need. For most, cost-cutting means the only option is to stay put-and run a better shop.

By: Charles Babcock & Paul McDougall
Information Week; March 24, 2008