London software testing news UK

Mercury takeover speculation

Posted in Software testing,testing tool by testing in London on June 3, 2006

Speculation is rife that Hewlett Packard Co. (HP) and EMC Corp. are in a bidding war for application performance testing software company Mercury Interactive Corp., for as much as $3.5 billion.


"With all the infrastructure consolidation going on with products like VMware, the next step [for users] is to check that what they have consolidated is optimized," said Brian Babineau, analyst with Enterprise Strategy Group. If you have consolidated 20 servers down to one server, for example, Mercury would help users to see if the new setup can still handle the old workload, Babineau said.

Other companies in this market include Symantec Corp. via Veritas' acquisition of Precise; Qwest Software and CA via its acquisition of Wily Technology Inc.

"It makes more sense for HP than EMC" to get into this space, according to Babineau. "It would be net-new business for EMC, and they'd probably have to keep it separate for a while." Integration could be a challenge for EMC, which is still caught up in integrating numerous other acquisitions. Meanwhile, HP already sells performance monitoring as part of its OpenView product. "They may look for Mercury to plug in or replace it," Babineau said.

Robert Stephenson, director of storage research at TheInfoPro, notes that Mercury's IT Governance, LoadRunner, WinRunner and its synthetic testing software products (Topaz) are a way into the production process of Fortune 1000 organizations. "The IT Governance portfolio product is very interesting; we do hear end users mention the product as part of their ILM [information lifecycle management] strategy for tying together storage value with application value," he said.

According to TheInfoPro's Wave 7 research, one of the top storage pain points is managing storage growth and proper capacity forecasting, and tying business values to IT.

"It is all about crossing the chasm between application views of the world and system views of the world," Stephenson said. "The more you can move in step with business needs, the more successful the technology strategy."

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