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: