Independent storage stalwart 3Par is now being woed by two big name vendors, after HP formally threw its hat into the ring.
Hewlett-Packard, despite already being loaded with one of the largest storage product catalogues in the world, announced 23 August that it would enter into a bidding war with Dell by offering $24 (£15.43) per share for 3PAR – which amounts to enterprise value of $1.6 billion (£1.03 billion).
HP said the proposed transaction represents about a 30 percent premium above the price proposed by Dell. HP’s proposal is not subject to a financing contingency and already has been approved by HP’s board of directors.
Dell’s most recent storage addition was the $1.4 billion (£900 million) acquisition of EqualLogic in 2007. EqualLogic, whose iSCSI-based architecture is aimed at midmarket companies, and 3PAR, whose products are designed for large-scale systems, address separate sections of the market.
Fremont, California-based 3PAR originally made its reputation by delivering a scalable, dependable thin-provisioning feature. It is a hot storage property because its clustered architecture is tailor-made for cloud systems that deliver software as a service.
HP Executive Vice President Dave Donatelli said that the addition of 3PAR, which has about 600 employees, will accelerate the company’s Converged Infrastructure strategy.
During an 16 August conference call with media and analysts, Dell executives made it clear that they intended to rapidly grow their new acquisition, with expansions planned on both the engineering and sales side.
“We’re seeing increasing demand for a new class of storage,” Brad Anderson, senior vice president of Dell’s Enterprise Product Group, said during that call. “For businesses and models that provide storage as a utility, we think 3PAR is a fantastic addition to that lineup.”
So the war begins.
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