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EDS extends Opsware contract

Opsware, a data-center automation software company, and EDS renew a contract worth $50 million.

Opsware, a data-center automation software company, and EDS have renewed a contract worth $50 million. EDS is using Opsware's software to automate tasks, such as configuring and updating server software, at EDS's Web hosting operations at different data centers.

The contract has an option to be renewed after 2008 on an annual basis. If EDS choses to renew, it will represent an additional $95 million of revenue for Opsware. The relationship between EDS and Opsware dates back to 2002 when Opsware, then called Loudcloud, sold its managed hosting service to EDS for $63 million.