HP acquires cloud computing start-up Eucalyptus

But the firm's Russian subsidiary is hit with a $58.77m fine for bribing the Russian government

After a brief spell away from its acquisition trail, HP is seemingly back to buying companies after it announced it would purchase cloud computing start-up Eucalyptus.

Financial terms were not disclosed.

Eucalyptus provides open source software to enterprises who can use it to build their own private and hybrid clouds.

HP is one of many companies – including Cisco and IBM – who are rushing to establish themselves as major cloud players. A key element for many is interoperability, and as Eucalyptus is a tool which allows companies to create on-premise Amazon Web Services (AWS)-compatible clouds and AWS-compatible hybrid cloud environments, HP is attempting to position itself as the main provider of AWS interoperability with this deal.

Eucalyptus' technology competes with the likes of Azure and OpenStack, and its CEO Marten Mickos has been outspoken on the governance around OpenStack, but has since softened his stance, suggesting in a blog post that he wanted Eucalyptus to become a contributor to the OpenStack project.

After the transaction closes, Mickos will join HP as senior vice president and general manager of the cloud business, reporting directly to CEO Meg Whitman. He was previously CEO of MySQL.

"Marten will enhance HP's outstanding bench of cloud executives and expand HP Helion capabilities, giving customers more choice and greater control of private and hybrid cloud solutions," said Whitman.

The deal is expected to close in the fourth quarter of HP's fiscal year 2014.

HP Russia bribed Russian government

Meanwhile, HP's Russia subsidiary has pleaded guilty on Thursday to paying bribes to foreign officials. It was fined $58.77m (£36.22m) as part of a $108m case against HP, with similar charges made in its Mexico and Poland subsidiaries.

The Russian subsidiary, known as ZAO Hewlett-Packard AO, was accused of bribing Russian government officials to ensure it would be handed a $35m contract.

"Hewlett-Packard subsidiaries, co-conspirators or intermediaries created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash," said Justice Department deputy assistant attorney general Bruce Swartz in a statement.