Loudcloud stockholders approve sale of hosting business to EDS
LOUDCLOUD, SOON TO be re-branded Opsware, announced on Monday that its stockholders have approved the sale of the company’s managed hosting business to Electronic Data Systems (EDS). Once the transaction is completed — it is expected to close before the end of this month, sources say — Loudcloud will become Opsware and finish its transformation from an IT automation managed services provider to a license-based software vendor, said officials from Sunnyvale, Calif.-based Loudcloud. The $63.5 million deal includes 50 enterprise Web hosting clients that will be transitioned to EDS datacenters. Additionally, EDS will license Loudcloud’s Opsware technology across its datacenters at a cost of $52 million over three years. Opsware automation software simplifies life cycle management of servers and applications to improve IT efficiency.
