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HP acquires 3Par: Now what?

Last week, I blogged about the 3Par bidding war and how I thought that HP would prevail.  Yesterday, Dell refused to match HP’s latest offer and so unless something crazy happens, HP is now the proud owner of 3Par for the rock bottom price of $2.4B!  The price is more than double Dell’s initial bid of $1.15B and is more than EMC paid for Data Domain.  In order to justify these high bids, Dell and HP must have thought that 3Par could create strong business value.  Now that HP has prevailed and is on the hook for $2.4B, they must execute the transaction and show how 3Par can drive incremental revenue and profits.  Let’s look at some ways HP could leverage 3Par to meet these goals.

Revenue growth is a key metric that will be used to assess the success (or lack thereof) of the 3Par acquisition.  In order to accelerate top line growth, HP cannot just replace EVA and XP sales with 3Par; they must find new avenues for the technology.  Some options include:

Categories
General

Why HP will prevail over Dell in the 3Par bidding war

The Twittersphere and storage industry are abuzz with the ongoing bidding for 3Par.  HP and Dell are aggressively pursuing the company and have a vested interest in 3Par technology. I believe that HP is more motivated to acquire 3Par and will prevail.

Both Dell and HP believe that a 3Par acquisition will generate additional business value, and they both must realize that the losing party will be placed in a difficult situation.  I believe that HP has more to gain by acquiring 3Par and more to lose by failing to do so.  Here is my assessment of the gains and losses by each bidder: