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$59 Million Acquisition Propels Veritas Further Into Utility Computing: Page 3 of 4

Veritas plans to start selling both products in the second quarter of this year. UpScale will be available first on Solaris, with a Linux version scheduled for release in early 2005. MicroMeasure runs on Solaris, Windows, Linux and HP-UX.

In adopting utility computing, Veritas joins industry heavyweights IBM and Hewlett-Packard Co.

Other companies that have pursued an acquisition strategy to help build out their utility-computing strategies are Sun Microsystems Inc., which bought CenterRun, Pirus Networks and TerraSpring; and IBM, which acquired ThinkDynamics. All four acquisitions occurred last year.

Nevertheless, utility computing remains a fuzzy term for most potential business customers, since computing is not quite the same as power usage.

"Unfortunately, when a given vendor goes and talks about creating a utility, it really comes down to what assets do they have in house that they can pull together and say, 'This is the model and this is what we believe utility computing is,'" Freund said.