HP seriously outbids Dell for 3PAR cloud storage firm | webOS Nation
 
 

HP seriously outbids Dell for 3PAR cloud storage firm 16

by Derek Kessler Thu, 26 Aug 2010 9:41 am EDT

HP, all in When companies start throwing around billions of dollars in a bidding war, we tend to pick our heads up from our phones to see what all the fuss is about. In this case, Palm overlords HP kept throwing in more chips until Dell folded, winning the pot containing cloud storage firm 3PAR at the cost of $1.5 billion. HP’s bid came in at nearly $500 million higher than Dell’s best offer.

So what is all the fuss over 3PAR? It turns out that despite their lack of profit over their decade-long existence, 3PAR has managed to push the envelope in cloud computing and storage. With both HP and Dell aggressively expanding their services divisions, 3PAR looked to be an attractive acquisition. As with HP’s purchase of Palm, there’s a lot of potential in 3PAR’s intellectual property, and all it needed was the kind of application of dollars that HP can provide.

While it seems pretty clear that HP’s intent with the 3PAR purchase is to expand the offerings of their Enterprise Services division, we can’t help but imagine/hope that this could also be tied to Palm and webOS. With its heavy cloud dependency, robust cloud storage and power is of high importance to webOS. In fact, if HP’s right about Palm and that all they needed was dollars to make the changes needed to bring in the millions of customers previously hoped for, then Palm’s servers are going to need some serious upgrading anyway. And who knows what sort of cloud-based services webOS 2.0 might end up supporting; this 3PAR acquisition could end up being more important for Palm and webOS than it seems on the surface.

Of course, the acquisition is still contingent upon approval of the bid by 3PAR’s shareholders (the company went public in 2007). And if the sudden rise in 3PAR’s stock price is any indication - up an astounding 45% today alone - investors expect that Dell may up the ante and counter-bid HP’s impressive offer.

Source: Reuters; Thanks to everybody that sent this in!

16 Comments

$1.6 Billion? I guess why not. It's only 2 months of free cash flow for HP.

Not sure what all the hype about 3par is.

Does this mean Dell won't sell our Pre 2?

This is good news for my Palm profile. They'll have lots of room to backup all my stuff =

Sweet. I sent this in earlier today. im sure everyone else was blowing up the hotline though. hp is buying up everything in sight.

I believe HP is already more than capable of running any cloud service from end to end without any need of 3PAR. They just keep getting huge on IT, competing with both IBM and Cisco, and their vision is to integrate everything in a single package.

I dont really think this could have anythnig to do with any webOS plan (or requiered by any webOS plan). It is just part of a vision of the enterprise division to serve every single enterprise need; or maybe they just want to leave Dell without a solution like this.

Everything I have read, the bidding war in NOT over; in other words, Dell may still up their bid as indicated by the premium at which PAR stock is trading above the HP offer. 3Par stock is up about 45% today, and about 180% since the Dell offer just a week ago. Just wanted to point out that HP has not won the bid for 3Par yet.

http://eresearch.fidelity.com/eresearch/goto/evaluate/snapshot.jhtml?sym...

For those wondering about some of the value of 3Par, read about their "thin provisioning" technology. I think HP really wants 3Par; if not, they may just be driving up the price for the competition.

Why not let Dell buy 3par and then HP buy Dell. Sounds like a better deal. Lol

+1

Why would they want to buy Dell? *vomit*

yes and then **pukes in purse**

and then the Rotary Club pukes on each other.

Maybe a wrong choice ???
EMC Trumps HP-Dell 3Par Battle With New VMware Integration

http://www.crn.com/news/storage/226900128/emc-trumps-hp-dell-3par-battle...

3Par fits better into ESS or Software, not Enterprise Services. ES would benefit from 3Par (should HP win) after the $1 Billion investment to upgrade the data centers because it would be the home to this unit. All of the above are in Enterprise Business (EB).

HP news != WebOS news. Would someone like to clarify how this integrates with WebOS? I was under the impression that Palm had a fairly decent "cloud services" platform for the OS already in production.

So 3Par is more valuable than Palm (1.2 billion)?????????