HP acquires AppIQ, Peregrine

By Ann Silverthorn

Hewlett-Packard recently completed its acquisition of AppIQ, a developer of SAN management and storage resource management (SRM) software with a focus on the SMI-S management standard. Financial terms of the deal were not disclosed.

HP also recently acquired Peregrine Systems, an asset management software vendor, for approximately $425 million. HP officials claim that the two acquisitions are part of the company’s goal of “holistically” managing data centers, from IT resources up to business processes.

John Webster, founder and senior analyst at the Data Mobility Group consulting firm, says the acquisitions fit well with HP’s overall strategy of acquiring or partnering with companies to build a broad portfolio of storage/systems/network management products. “HP’s been in the larger networking and IT management arena with OpenView for a long time,” says Webster, “but the company seems to have been struggling to get its storage management act together from the standpoint of OpenView.”

According to HP officials, OpenView Storage Area Manager is the only product that will cause redundancy between the HP and AppIQ product lines. Since HP’s Storage Essentials was introduced in February, the company has been working with OpenView Storage Area Manager customers on a migration path to Storage Essentials, which is based on AppIQ’s StorageAuthority software.

Officials from both companies claim that the acquisition will not affect AppIQ’s existing OEM relationships. AppIQ OEMs include vendors such as Engenio, Hitachi Data Systems, Sun, SGI, and others. “HP sees our OEMs and channel partners as one of the key business values of this transaction,” says Ash Ashutosh, AppIQ’s CTO.

Rich Escott, HP’s director of storage management software, adds that AppIQ technology will help HP broaden its heterogeneous resource management. “We can now address our customers’ complex, multi-vendor environments,” says Escott, “and connect through all of the devices so our automation and virtualization can work across the entire infrastructure.

“We will layer automation and virtualization on top of SRM to take the complexity out of managing the infrastructure, allowing it to be more dynamically managed,” Escott continues. “In the past 18 months, we’ve invested in automation and virtualization with our acquisitions of Consera and Novadigm.”

Headquartered in Burlington, MA, AppIQ has 135 employees, approximately 250 customers, and offices in the UK, Hong Kong, Singapore, and India.

San Diego-based Peregrine, a public company with nearly 700 employees, reported sales of $191.1 million for the fiscal year ended March 31.

This article was originally published on November 01, 2005