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Veritas Buys More Utility Power

Veritas Software Corp. (Nasdaq: VRTS) spends even more money than major league baseball teams on utility players. Continuing a shopping spree that began around two years ago, Veritas has paid $35 million in cash for storage automation startup Invio Software Inc. (see Veritas Buys Invio).

Veritas sees Invio as another piece of its utility computing strategy, geared to products that provide storage resources as needed, with hardware reconfiguration. Veritas already licenses Invios process automation engine, which is included in its CommandCentral Service application through an OEM deal (see Veritas Upgrades Utility Player).

So why pay did Veritas pay $35 million for technology it already had? Because Veritas wants to control where that technology is going. “Owning the technology allows us to have more control over the roadmap,” says Nick Mehta, product manager for Veritas’s utility computing products.

The acquisition also gives Veritas Invio’s development team. Mehta says the team will join Veritas, along with other “select employees” from Invio. Most of Invio’s 34 employees are developers. Veritas won’t yet say whether any of Invio’s executive team will be brought aboard.

Sources say the deal may have saved Invio from closing its doors because of lack of revenue. Invio was able to generate only three OEM deals since it was founded in 2000 under the name Filestra (see It's All Go at Invio). One of those deals was with BMC Software Inc. (NYSE: BMC), which folded its storage division in February 2003 and no longer had a need for Invio's software (see BMC Folds Storage Unit). Veritas and McData Corp. (Nasdaq: MCDTA) were Invio's other OEM customers.

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