Hewlett-Packard took another step back into the mergers and acquisitions market, since its disastrous $11 billion acquisition of the software firm Autonomy, announcing today that it will buy cloud software startup Eucalyptus Systems.
Sources familiar with the deal tell Re/code that the price is less than $100 million. But it’s not about the money. It’s more of an “acqhire”; Eucalyptus employs fewer than 100 people. The deal calls for Marten Mickos, CEO of Eucalyptus, to take over as Senior VP and head of HP’s cloud business unit. He’ll report directly to CEO Meg Whitman. HP’s Martin Fink had been running that business since late last year. Its prior head, Biri Singh, left HP last year.
For what probably amounts to a relatively small amount of money, Hewlett-Packard just made a big bet.
Thursday afternoon, HP said it had entered an agreement to acquire a company called Eucalyptus, which makes open source software for managing cloud computing systems. The chief executive of Eucalyptus, Marten Mickos, will become general manager of HP’s cloud computing business, reporting directly to Meg Whitman, HP’s chief executive.