EDS extends Opsware license

EDS officials have extended a software licensing arrangement with Opsware Inc., adding a potential total payment of $145 million during five years.

The new deal starts in August 2005, when the original agreement expires, and includes a three-year, $50 million base period. Five optional renewals worth up to $95 million follow the base period, according to Opsware officials. Opsware's software automates server management and application updates.

"The fact that EDS has renewed its commitment to Opsware demonstrates the importance of [information technology] automation and the value they've already realized with the Opsware software," wrote Ben Horowitz, president and chief executive officer of Opsware, in a statement. "Opsware is enabling EDS to provide superior service and respond more rapidly to their customers needs. With this agreement, EDS' deployment of Opsware continues to be the largest commercial deployment of IT automation software."