BMC buys BladeLogic for $800 mln

It had to happen. Data center automation has been white hot lately, and after HP picked up Opsware back in July, that left one big public pure play in the space, BladeLogic. I think this was probably a smart move for BMC

Open Source Systems Management: What SysAdmins Want

For the past couple months, we've had a poll running on www.netdirector.org asking visitors what they'd like to see as the next feature. As anyone who knows me can attest, I am a huge believer in the wisdom of the crowds, and so the NetDirector roadmap will follow where our community takes us.

The following graph shows the results of the poll so far (click on the image to make it bigger).

As interesting and useful as this feedback is (and, btw, thank you for everyone who participated), I think it is equally interesting to read between the lines of this poll's results. The top three features requested, Windows support, and integration plugins to the two most popular open source patching tools, Apt and Yum, speak clearly and unequivocably to the need for better tool integration. As things stand today, there is no open source tool for managing across Linux, UNIX and Windows systems. Further, even in the Linux/UNIX world, Sys Admins must rely on seperate tools for managing configs (Webmin, command or scripts) and patching those systems with something like Yum or Apt. The concept of lifecycle management, where managing configurations and set up is seemlessly linked with patching and provisioning simply does not exist.

If you want all this, you have 2 choices - shell out beacoup bucks for a proprietary system from someone like Opsware (now HP) or BladeLogic, and get about twice the features you actually need and want, or build it (and then maintain it) yourself.

In the next dot release of NetDirector, we are going to go some ways towards helping integrate these various tools. We'll be offering a Windows agent, and we'll be vastly improving the developer docs so that, hopefully, we can convince people on the Yum and Apt projects to help create NetDirector plugins to these tools. Hopefully, we will also be able to include in this release a feature to allow SysAdmins to run their own scripts through NetDirector.

HP Opens Wide for Wares

Yesterday HP picked up Opsware for $1.6 Billion and Neoware for $214 million. Here's my thinking on what the Opsware deal means for other IT automation providers (my company Emu Software included) and for the market in general. I'll write another entry about the Neoware one.

So, HP paid 15 times sales for Opsware, which is at least double the typical premium. Were they just feeling generous? I doubt it. Rather, it was probably a competitive situation. Who else might have also wanted opsware? I'd guess the list might include EMC, IBM, CA, EDS, who knows, maybe Google.

But that's not where the story ends IMHO. Oh no. Consider the impact of this deal on a company like EDS. I read a story today about how EDS competes with behemoths like IBM global services and HP for big IT outsourcing deals, and the EDS sales pitch goes like this. You don't have to get locked-in to one vendor (or fear getting locked-in) and you don't have to pick and choose best of breed from multiple vendors and do the integration yourself (and deal with no "single throat to choke") . Go with us and our EDS Agility Alliance, and get the best of both worlds - EDS serves as point for the service and the other vendors (little companies like Microsoft, Oracle, Sun and Dell) bring their technology expertise. So, what does this have to do with HP buying Opsware, you ask? Well, EDS was probably Opsware's first customer, and may well be its largest. In 2002 Mr. Andreessen sold the ASP part of Loudcloud to EDS for a reported $63.5 million, and EDS turned around and entered into a 3 year deal (since extended) with the part of Loudcloud that Marc kept, which he renamed Opsware. Basically, some smart Sys Admins at Loudcloud needed a way to more efficiently manage their data centers, and so they built Opsware, and Marc decided he'd rather be in the software business than in the application hosting business.

Alright, so, you're EDS, or you're a member of their Agility Alliance, and your sworn enemy is HP. Do you keep relying on HP Opsware for your data center automation? That would seem to me to be a fairly precarious situation. Now, something as central as Data Center Automation is not going to be replaced quickly, but if I'm EDS, I'm actively considering my options right now.

But the fun doesn't stop there. Nortel and Cisco, who I'll remind you compete with HP's Procurve products, both resell Opsware to their enterprise customers. Cisco, for their part, is announing their own Data Center optimization solution, what they're calling Data Center 3.0, this week. According to Chambers, "Because the network is uniquely positioned to be the platform for the data center, we are investing in innovations to help our customers transform their data centers for improved efficiency and increased business productivity."

I wonder if Opsware can contiue to grow its revenue at the same pace as part of HP with all these powerful companies that prevously were freinds are now, at least in part, competitors