HP bids 3PAR to intercept rivals

Source: Internet
Author: User
Keywords HP the
Hewlett-Packard and Dell "bucket-rich" bid for the 3PAR "ping pong" finally fell to the curtain, HP won the victory.  In fact, the fierce bidding battle is only a drill in the future for market competition. HP ended up winning the bidding war with Dell around the 3PAR. A few days ago, Dell Senior vice President Dave Johnson announced that Delda not to give HP 33 U.S. dollars per share of the offer, so decided to abandon the bid for storage technology company 3PAR.  That means Hewlett-Packard eventually managed to buy 3PAR at a high price of $2.35 billion trillion, which is rare for a high-end storage company. The takeover battle was kicked off by Dell on August 16.  At first, Dell quoted US $1.15 billion, but after that, HP followed up urgently. As a storage company, 3PAR does not have a strong profitability, and Dell's first offer of 1.15 billion dollars has been a high premium. But industry insiders point out that 3PAR can provide a complete solution for the acquirer and make up for the other side's short board in storage.  Hewlett-Packard and Dell have all along faced the problem of insufficient investment in innovation and development, unable to compete with IBM-led rivals in the enterprise market.  While Dell can get a 72 million-dollar break-up fee from 3PAR, the bid failure also means Dell will have a widening gap between the corporate-level market and HP, while Hewlett-Packard is throwing rivals behind. What does HP really get with such a high purchase price?  How long will this victory last? Dell has given up the PC's profit contribution to manufacturers continues to fall as the PC market matures. As a result, some traditional industry giants, including Dell and Hewlett-Packard, are desperate to find new business growth, and Dell's bid for 3PAR has hurt HP's nerves.  After 8 rounds of bidding, Dell finally withdrew from the 3PAR bid, handing the data storage company to rival Hewlett-Packard. In recent years, both in hardware and software, HP has been competing with IBM for dominance. As IBM continues to turn from "hard" to "soft", Hewlett-Packard is left behind in the enterprise market. IDC's data show that IBM has ranked first in the server sector throughout the 2009.  and Hewlett-Packard in the enterprise-class solution market, especially specific to the storage area, there is a soft rib, less investment, weak research and development, innovation has been a problem that HP needs to solve. Why is HP so willing to pay the cost? Originally, 3PAR is the global storage virtual technology Pioneer Enterprise, has been for enterprise data management and storage to provide high-end systems and services, its competitors include giant EMC, HP, IBM and so on.  Its business is the current hot hype of "cloud computing" behind the foundation. In the past 4 years, Hewlett-Packard has acquired a certain basis through acquisitions, but there is no real competitive capital. Bidding for 3PAR will allow it to gain the growth base of the enterprise-class market customers. At the same time, given the highly integrated effect of future servers and storage, HPThe purchase of 3PAR will undoubtedly make itself in the server revenue and shipments to pull up and "competitor" Gap, so that their leading edge stable. In the fight, Hewlett-Packard Executive vice President Dave Donatelli said in a conference call that HP's acquisition not only has a high price, but will also use the huge marketing network around the world to sell 3PAR products to customers around the world.  In addition, the HP acquisition of 3PAR is another goal to take advantage of 3PAR of storage technology, let it be a razor for HP's integrated infrastructure strategy, giving some large and midrange customers more choice and delivering unmatched performance and efficiency to customers who want to deploy cloud computing, prompting two of companies to grow new businesses. So, for HP, the acquisition of 3PAR transactions can not be a mistake.  And how to digest the cake and recover as soon as possible before throwing out the big, it is debatable.  Intimidation opponents have commented that HP acquisition of 3PAR, will receive valuable high-end storage technology, as well as Google, Verizon, Amazon, including a large number of high-end customers, is "stone." Analysts point out that HP's move is mainly due to the acquisition of 3PAR on the one hand to enhance the company in the enterprise-level market challenges IBM's strength, on the other hand, and Dell in the global enterprise-level market distance.  Industry insiders, although the 3PAR itself is not very profitable, but its enterprise data storage area is a piece of "fat", IBM and other industry giants are now in the forefront of this highly profitable business areas, HP, of course, can not lose to rivals such as Dell. Thus, after HP decided to join the bid, industry experts pointed out that it was not a traditional purchase based on reasonable value, but a strategic deal.  In other words, HP not only bought a company, but also succeeded in preventing a strong competitor from getting the company. 3PAR provides virtualization solutions for cloud computing multi-tenant storage arrays. "3PAR is suitable for HP's converged infrastructure, which relies on the many benefits of virtualization." "Pund-itinc. "A very real problem, cloud and utility computing cannot exist without virtualization," said chief analyst Charlesking.  "3PAR also has a large number of high-end customers, including Google, Verizon, Amazon, which will bring HP's rich resources and rewards will only make other competitive companies envy." Will competition continue to escalate and end the "takeover battle" between HP and Dell?  More noteworthy is that it reflects the new trend of IT industry development. HP and Dell's "decisive battle" stems from the two sides of the same "dumping their power, fighting this" mentality. In fact, 3PAR is a storage virtualization technology vendor, which means that storage capacity can be increased or decreased according to actual needs. This technology is really important, but it is not an innovative technology. Both Dell and Hewlett-Packard are able to deliver their own storage virtualization technology in the short term or acquire other companies that can provide similar technology。 3PAR is just as important for HP in the competition for storage, servers, and future data centers and cloud computing, both now and in the future.  So what Dell and HP want to integrate through the deal is not just technology but the market. For them, how to better manage or collect data has become a core qualification, they face this problem every day. Data has become a global problem, not just the problem that it equipment vendors need to address.  And this change is driving the entire IT industry to change dramatically. At the same time, both sides of the battle of the call price, is not simply a big business between the scale of the dispute, but to understand the future of the enterprise strategy.  The bid may even rewrite the future rankings. HP and Dale buy 3PAR to enhance their own strength, but this will not be the final showdown, but only a future market competition exercise. Whatever the advantages HP has gained, it will have more mergers and acquisitions in the future, and these companies will have billions of of billions of dollars in their accumulated cash to carry out the arms race.

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