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HP Software to Purchase Stratavia for Automation Technology

Below is TBR’s commentary on Hewlett Packard's Bid to Acquire Stratavia. Please feel free to use the below content, or call/email for additional commentary.


HP Software and Solutions group purchases Stratavia to continue to strengthen application management tools:
Following last week’s announcement to purchase Fortify, an application lifecycle management security company, Hewlett-Packard announced its intent to purchase Stratavia, a database and application automation company, as HP builds out its application management portfolio. TBR believes HP is strengthening its application management portfolio with automation and security solutions to help support broader corporate objectives within cloud and Business Technology Automation. Both acquisitions will be integrated into HP Software and Solutions business unit to support application lifecycle management and Business Service Automation.

Stratavia provides HP Software and Solutions with automation capabilities for database deployments, which HP Corporate can utilize to support cloud initiatives like Converged Infrastructure and Cloud Service Automation. Enhanced security solutions and data center automation will drive customer adoption of cloud solutions as HP Software and Solutions provides the enabling technologies and tools to support cloud infrastructures and deployments.

The acquisition of Stratavia supports HP’s corporate strategy as a systems management vendor, to provide a one-stop shopping experience for customers through integrated solutions. Customers benefit by running more efficient IT departments, reducing labor requirements, cutting costs, and providing more visibility between IT and business operations.


Automation technology drives value for HP’s IT process automation offering
Stratavia’s automation capabilities also support HP’s IT process automation offering, HP Operations Orchestration (HP OO). HP OO is a capstone offering that provides additional value to customers by leveraging HP solutions to automate IT processes that reduce costs and allow staff to focus on value driving projects. HP uses its process automation offering to drive cross-sales. Stratavia provides the toolset to compete more effectively against BMC’s Atrium Orchestrator after its automation acquisitions of RealOps and BladeLogic.

TBR estimates privately-held Denver-based Stratavia had 33 employees and earned $10 million in annual revenue. Terms of the deal were not disclosed; however, TBR estimates HP will pay $24 million for Stratavia.


Disclosure: No Position