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Acquired

Episode 42: Opsware (with special guest Michel Feaster)

Acquired

Ben Gilbert and David Rosenthal

Venturecapital, Ma, Investing, Acquisitions, Startups, Vc, Investment, Business, Technology

4.8 • 2.9K Ratings

🗓️ 5 August 2017

⏱️ 78 minutes

🧾️ Download transcript

Summary

Acquired dives into the legendary acquisition of Ben Horowitz & Marc Andreessen’s “second act” software company Opsware, from a perspective never before heard—HP’s side of the story! Our heroes are joined by Michel Feaster, who led both the acquisition for HP and then the Opsware product as part of the integrated company afterward under Ben Horowitz. Today the tables have turned: Michel is the Co-Founder and CEO of Seattle-based startup Usermind, and Ben Horowitz sits on her board on behalf of A16Z. This episode is not one to miss!

Sponsors:
Vanta: https://bit.ly/acquiredvanta

Statsig: bit.ly/statsigacquired
Modern Treasury: https://bit.ly/acquiredmoderntreasury



Topics covered include:
  • Opsware’s early history and origins as Loudcloud, the “second act” of internet wunderkind Marc Andreessen and Netscape product manager Ben Horowitz
  • Ben’s first person telling of the Loudcloud/Opsware history in The Hard Thing about Hard Things, as well as the great Wired "period piece” covering Loudcloud’s launch in August 2000
  • The importance of timing, and Loudcloud’s too-early vision of—essentially—AWS before AWS (including eerie parallels between the metaphor Andreessen used to describe Loudcloud during the company’s first press briefing, and Jeff Bezos’s description of AWS at YC nearly a decade later)
  • Creation of the “Opsware” tool inside of Loudcloud to automate deploying and configuring servers within Loudcloud’s data centers
  • Loudcloud's meteoric rise, crash following the burst of the internet bubble, and hard pivot as a public company into Opsware—now an enterprise software company selling datacenter tools
  • Michel’s role in HP’s evaluation of the company as an acquisition target, and process leading to its $1.6B acquisition in July 2007
  • Integration of the company into HP’s culture and sales channel
  • The creation of Ben & Marc’s “third act”, the VC firm Andreessen Horowitz, and what it’s like for Michel now having Ben as an investor on her board at Usermind

The Carve Out:

Transcript

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0:00.0

So we also grade acquisitions.

0:03.0

Yeah.

0:04.0

David and I will each give it a grade and our guests can opt to either grade or not,

0:08.0

especially since you were part of it.

0:10.0

I'm happy to grade.

0:11.0

Yeah. All right. be a grid yeah all right Welcome back to episode 42 of Acquired, the podcast about technology acquisitions and

0:27.1

IPOs.

0:28.1

I'm Ben Gilbert.

0:29.1

I'm David Rosenthal.

0:30.9

And we are your hosts. Today we are covering the 2007 acquisition of

0:35.2

Opsware by HP. We have with us a fantastic guest Michelle Feister. So David

0:41.7

will give Michelle's full bio in a minute but I want to say I'm personally very, very excited

0:46.0

to have Michelle with us.

0:47.4

A lot of people know the story of the deal from the Ops Ware side as told in Ben Horowitz's

0:52.1

The Hard Thing About Hard Things.

0:54.6

So Michelle was the director of products for the division that purchased Ops Ware and is going

1:00.4

to share the story from the HP side of that acquisition today.

1:04.6

So David, can you tell us a little about Michelle's background?

1:07.4

Yeah, so Michelle today is the co-founder and CEO of User Mind, which is a unified customer engagement hub based in

1:16.7

Seattle and that she founded in 2013.

1:20.5

But as Ben was alluding to, decade ago before user mind Michelle was working at the opposite end of the tech spectrum from a startup.

1:29.0

She was the director of product for a division of Hewlett-Packard's enterprise software business where she

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