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Veritas Closes Precise Software Purchase - InternetNews.
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Veritas Closes Precise Software Purchase

Veritas Software Monday closed one of its most significant acquisitions ever Monday, cementing its transformation as a utility computing provider with its purchase of Precise Software Solutions .

The Mountain View, Calif. maker of storage software paid approximately $609 million, consisting of about $400 million in cash and 7.4 million shares of common stock for the vendor of application performance management, a market segment research firm IDC said could be worth $4.92 billion by 2006. Veritas first announced the deal last December concurrently with its purchase of Jareva Technologies for $62 million in cash.

While Veritas has made it a point to create software that paves the way for heterogeneous software management, its acquisition of Precise products should help its speed the rate at which data can be accessed. This is a key ingredient in the company's utility computing model, where customers will be able to request computing power as they need it.

Currently IBM , HP , Computer Associates , Sun Microsystems and even Microsoft are working on similar agendas for such computing provisions. In this high-stakes push to help enterprises lower total-cost-of-ownership and raise return in investment, Veritas already counts Carnival Cruise Lines, Amazon and EDS among its customers.

"The integrated technologies will allow Veritas to enable utility computing by increasing the availability and performance of our customers' applications while lowering the cost of their existing hardware and reducing the complexity of IT environments," said Gary Bloom, chairman, president and CEO of Veritas.

Today's news means the Precise i3 application performance management suite officially becomes Veritas i3, which is designed to detect problems with application performance before the end user notices them, pinpoint the cause of the problems and correct them. Veritas i3 analyzes the total system performance, from application to storage, and correlates the results across all application tiers.

As an indication of the intelligence of the software, Veritas i3 recommends remedies to correct the problem areas. Veritas plans to integrate Veritas i3 software with its high availability products and server provisioning technology in the first half of 2004.

Technology outsourcer EDS is already using Veritas i3. Specifically, its EDS Global Hosting Services utilizes i3 with Veritas' high availability software to help provide guaranteed end-user response time to hosted business applications.

The Precise purchase will also help Veritas to bolster its storage resource management (SRM) suite because it now has Precise StorageCentral, which is storage resource management software focused on file and quota management in Windows environments. Renamed Veritas StorageCentral, the software allows IT organizations to reclaim disk space and control storage growth and allocation to reduce storage and administrative costs.

In related news, Veritas announced a strategic channel agreement with CDW to deliver StorageCentral software to Microsoft Windows customers throughout the U.S. CDW is acknowledged as the nation's largest provider of multi-brand technology products and services.

"Storage resource management will continue to be the fastest growing segment of the storage software market, with Windows becoming the leading storage resource management platform," said Bill North, director of research, storage software. "By enlisting the support of CDW to deliver Veritas StorageCentral software, Veritas has accelerated its approach to capturing the SRM market."