HP and Dell squabble to get rights of Indian founded 3Par
By siliconindia   |   Wednesday, 25 August 2010, 00:03 IST   |    1 Comments
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HP and Dell squabble to get rights of Indian founded 3Par
Bangalore: HP started a bidding against its rival Dell for the rights to 3Par, an 11-year-old storage company based in Fremont, California. HP's bid of $1.6 billion, or $24 a share, is 33 percent higher than what Dell offered last week, $18 a share. It is also 149 percent higher than where 3Par was trading before the Dell offer, reports Ashlee Vance of the New York Times. "You see deals go in vogue, and we are clearly seeing that now," said A. M. Sacconaghi Jr., an analyst with the research firm Sanford C. Bernstein & Company. The makers of tools, like 3Par, have turned into some of the hottest properties in Silicon Valley as companies need a place to store vast amounts of data which includes video clips, e-mail, reports and presentations and they also need tools to help them search, shrink, shuffle and otherwise manage it. Storage companies often create links between software and hardware, which allows them to sell bundles rather than a stand-alone product to customers and to innovate at a quick clip, said Garth Gibson, a computer science professor at Carnegie Mellon University. These trends, along with the importance of data, have helped storage systems outflank computer servers in importance. Analysts have pointed to companies like Compellent, CommVault and Isilon Systems could benefit from the storage acquisition wave. Shares of all three companies were up more than 10 percent on Monday on the back of HP's bid for 3Par.

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