BMC buys BladeLogic, eyes data center automation

Summary:BMC said Monday that it will buy BladeLogic, which specializes in automating data centers, for $800 million, or $28 a share.The news comes on the heels of a bevy of data center announcements from HP, which is hoping enterprises go for its data center as a service strategy.

BMC said Monday that it will buy BladeLogic, which specializes in automating data centers, for $800 million, or $28 a share.

The news comes on the heels of a bevy of data center announcements from HP, which is hoping enterprises go for its data center as a service strategy. HP also bundled in some data center automation news of its own.

For BMC, the BladeLogic deal is about acquring a "a significant, high-growth revenue stream," the company said in a statement. BladeLogic shares closed Friday at $23.61.

BMC said that it's hoping to take BladeLogic and automate a bevy of IT services. BMC has an architecture dubbed Business Service Management. The pitch: BMC can give you a 90 percent improvement in IT efficiency in 90 days. It should be noted, however, that if those returns don't pan out it's quite difficult to swap out to another vendor.

The two companies noted that their product portfolios are already integrated. BMC said the deal will boost revenue while being "slightly dilutive" to earnings minus charges in fiscal 2009. In 2010, BladeLogic will add to earnings.

Overall, I have to bone up on BMC's latest acquisitions, but it appears that the company may be worth watching.

Topics: Hardware, CXO, Data Centers, Servers, Storage

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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