EDS extends IT automation deal with Opsware for three years

The deal is potentially worth $145M over eight years

Outsourcing and IT services vendor Electronic Data Systems Corp. has renewed an agreement for services from IT automation and utility software company Opsware Inc.

In an announcement today, Plano, Texas-based EDS has signed an additional $50 million, three-year deal with Sunnyvale, Calif.-based Opsware that will run through 2008.

The two companies had already signed a three-year, $52 million deal that runs through 2005, but EDS chose to renew the arrangement with one year remaining on the contract. The new contract also has five option years that could extend its worth to $145 million if those options are renewed.

"Opsware software has proven to be a best-in-class solution, helping EDS deliver on the promise of automation and the requirement for a flexible, scalable, agile, cost-efficient infrastructure ... all of which are key ingredients in a global utility computing service," Larry Lozon, vice president of EDS Hosting Services, said in a statement. "Together, EDS and Opsware have improved the quality and efficiency of hosting services by automating the entire environment of managed enterprise software, and the IT infrastructure upon which applications and Web sites run."

EDS is using Opsware automation in data centers across North America and Europe. Data center automation is a key component to EDS's Agile Enterprise platform, which automates operations such as server provisioning, system configuration, patching, disaster recovery and configuration management.

"The fact that EDS has renewed its commitment to Opsware demonstrates the importance of IT automation and the value they've already realized with the Opsware software," Ben Horowitz, president and CEO of Opsware, said in a statement.

In June 2002, Opsware, which was named Loudcloud Inc., changed its name and sold its managed services business to EDS to rebrand itself as an enterprise software maker (see story).

Copyright © 2004 IDG Communications, Inc.

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