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$59 Million Acquisition Propels Veritas Further Into Utility Computing

Veritas Software Corp. says it has agreed to acquire Ejasent Inc. for $59 million in cash, a move expected to boost the storage software company's utility computing strategy.

Veritas Software Corp. on Wednesday said it has agreed to acquire Ejasent Inc. for $59 million in cash, a move expected to boost the storage software company's utility computing strategy. Through the acquisition, expected to be completed by the end of the month, Veritas gets Ejasent's core application virtualization software, called UpScale, and its usage-based metering and billing software, called MicroMeasure. Both companies are based in Mountain View, Calif.

Utility computing, or on-demand computing, is a new industry trend in which system vendors sell services, such as processing power, storage and software, on a per-usage basis. The attraction for customers is the option to pay for computing services in a fashion similar to electricity or other utilities.

Ejasent, founded in 1999, is the third utility-computing-related company bought by Veritas. Jareva and Precise Software were acquired last year for a combined $599 million in stock and cash.

The acquisition appears to be in direct response to rival EMC Corp.'s recent acquisition of server virtualization provider VMware, David Freund, analyst for market researcher Illuminata Inc., said.

In addition, the purchase is another example of Veritas's shift from a company with a storage-centric view of IT infrastructure to one with a more application-centric view.

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