Recent Investments in Software Companies

The chip maker Intel will invest over $30 million in software companies. There are four companies, and three of them are cloud computing companies, including Adaptive Computing, Joyent and Nexant. Cloud computing allows users to save their data on the web. Ciranova, the fourth company, makes software for companies involved in creating chips for high definition multimedia, broadband and mobile web.

Hewlett-Packard Co (HPQ) has recently decided to buy ArcSight Inc, a security-software maker. They will pay around $1.5 billion for acquisition of the company. This is the second small technology company that HP has bought in the past two months. The company agreed to pay $2.3 billion for 3PAR Inc, a storage maker. After purchasing ArcSight, Hewlett-Packard shares rose substantially. HP has announced that they will acquire a series of companies, mostly in technology and software.

OpenView Venture Partners invested $9.5 million in Kareo, a healthcare software company. Kareo provides medical billing software of physicians. OpenView’s investment will help Kareo enhance customer service, boost marketing strategies and improve the management team. Kareo is growing quickly, as it offers a simple, affordable solution to the complicated medical billing techniques in the United States. OpenView venture partners focuses on high-growth software. The company has invested in a number of other software companies, including Acronis, Aelita, Balihoo, ExactTarget, Loyalty Lab, Open-E and Zmags.

This year, Google acquired the travel software company ITA, which is a flight information software company. Rather than pointing searchers to other sites, Google is showing their own results and directing users to restaurants and services directly. The flight software company ITA will allow them to break into the travel market. This move could alter the travel industry. Also, Microsoft, a rival in travel search market, uses ITA software. Companies like Kayak, Expedia and maybe even some airlines might resist this acquisition. Recently, the justice department questioned the Google’s acquisition of ITA software, noting that it might have a negative influence the online travel industry. Google, however, maintains that their goal is to improve travel related search results.

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