HP acquires open-source hybrid cloud provider Eucalyptus
Share on Twitter.
Get the most reliable SMTP service for your business. You wished you got it sooner!
September 12, 2014
Hewlett Packard said earlier this morning that it has acquired open-source hybrid cloud software
maker Eucalyptus, in an unexpected move to bolster its Helion cloud offerings.
Terms of the deal weren't disclosed however, but a Reuters report cited an unnamed source
who claimed it went down for less than $100 million.
Once the deal closes, which is expected to happen by the end of HP's fiscal year in October,
Eucalyptus CEO Marten Mickos will join HP as the new senior vice president of its cloud division.
"More and more today, enterprises of all sizes are demanding open source cloud solutions, and I'm
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," said Mickos
in a statement.
This won't be the first time that Mickos, a veteran of open source startups, has taken an executive
role at a big technology company. He spent a year as senior vice president of the database group at
Sun Microsystems after Sun acquired open source database maker MySQL AB, where Mickos had spent seven years
"The addition of Marten to HP's Cloud leadership team will strengthen and accelerate the strategy we've
had in place for more than three years, which is to help businesses build, consume and manage open source
hybrid clouds," said HP CEO Meg Whitman.
Just what HP has planned for the Eucalyptus technology itself, however is still unclear at this point.
The open source Eucalyptus software is designed to allow companies to build private and hybrid cloud
computing environments that are compatible with Amazon Web Services.
Eucalyptus has maintained close relations with Amazon to ensure that customers can easily move
and share various resources between their own data centers and Amazon's public cloud.
It's solid technology, relatively mature and it has plenty of fans. The issue is, most industry
heavyweights have lately backed OpenStack, not Eucalyptus, as their open source cloud solution
of choice – and that includes HP, which has earmarked no less than $1 billion to build its Helion
cloud with OpenStack technology.
In fact, HP's press release announcing the Eucalyptus deal never once mentioned the Eucalyptus
software, let alone what it plans to do with it, saying only that Mickos will run the company's OpenStack-based
More to the point, HP dropped support for both the Amazon EC2 APIs and Eucalyptus tools when its
Helion cloud went into general availability in December of last year, which doesn't bode well for
Eucalyptus' future at the company.
We asked HP for clarification, but it declined to comment. In a blog post in August, however,
Mickos did discuss the financial difficulties Eucalyptus has weathered over the past few years, and
in particular the tsunami of competition the company faced in the form of OpenStack, CloudStack, and
"We are unafraid to compete with any OpenStack vendor," Mickos wrote. "But we are also unafraid
of supporting the OpenStack phenomenon. When open source wins, we all win."
From the look of things yesterday, Mickos will soon be "supporting the OpenStack phenomenon" a lot more
than he was expecting to at the time.
Get the most dependable SMTP server for your company. You will congratulate yourself!
Share on Twitter.