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Why HP and Dell are willing to overpay 3PAR and who will win?

But before we get to the need to answer another question – why the two companies are willing to overpay for 3PAR?

How will 3PAR Dell help?

While buying announcing its decision to 3PAR, "said Dell the addition of 3PAR is the" same values bring the power, flexibility and ease of use has brought higher purpose as a virtualized storage deployments EqualLogic for entry-level and mid-range, rounding our industry-leading solutions portfolio. "

"With 3PAR, Dell, innovative systems and customer choice in each storage tier, the offer direct-to highly-virtualized clustered SANS attach," the company said in a statement.

In other words, 3PAR expected Dell's core computer to expand sales business and help it to bigger rivals like HP and IBM in the complex computer systems and technology services market that higher profit margins than the traditional desktop and laptop PCs to maintain market.

The 3PAR much also comes at a time when Dell, which has been hit by shrinking market share in PCs and tightening profit margins, trying to clean up its image.

Recently, the company and Michael Dell had charges by regulators that it had not properly reported income down. The Securities and Exchange Commission (SEC) had the company not to disclose to its investors' great exclusivity payments "made to have it done by the microprocessor manufacturer Intel in return for giving up chips from Intel rival AMD.

Under the settlement, Dell had to pay one million fine, while the company forfeits 0 million, without admitting the allegations.

However, the incident sparked distrust between investors and Michael Dell and on more than 25 percent of shareholders against his re-election to the Board 12th Dell culminated August annual meeting.

Like 3PAR helps HP?

"Accelerate the completion of the next generation of Storage 3PAR architecture HP Wins Converged Infrastructure Strategy, the customers with an unmatched portfolio of intellectual property in storage, server and networking solutions. Strengthen 3PAR highly scalable storage systems more HP will be able to highest supply levels of performance, efficiency and reliability to customers around the world. The combination will strengthen HP's storage offerings and diversify its portfolio in key growth markets, "HP said in a statement when their decision to make an offer make for 3PAR announced.

According to Dave Donatelli, the HP Enterprise Server, Storage and Networking Business Leads, 3PAR a "perfect fit" for HP and will help accelerate its "converged infrastructure strategy … particularly in cloud-and scale-out markets."

However, feel analysts in HP's case, the decision to buy, 3PAR as strategic and tactical because it would provide 3PAR not only a nice addition to their business portfolio, but also from HP may be more a move to Dell prevented by growing the company computer center business.

Who will emerge victorious, as the (probably)?

Analysts said both Dell and HP have 3PAR Dell is increasingly desperate.

3PAR, analysts say, Dell helps to larger corporate clients, large institutional banks that they have still not break.

3PAR is the only company in the high-end data storage market, which is on the block and buy Dell within range. The only other big players are IBM, EMC Corp. and Hitachi.

"3PAR is a lot of credibility to Dell's strategy, and if it does not end with 3PAR then it is that credibility is lost, this is a big decision for Michael Dell," said Robinson.

Is Hapoalim Securities analyst Kevin Hunt. According to Hunt, Dell will never be able to work with people like HP and IBM compete "if they do not do such a thing."

"If she gets HP (3PAR), Dell has no other options – they have never been a high-end solution, and must always other people's boxes," said Hunt sell.

However, things do not look good for Dell now that HP is buying the race 3PAR good.

"Dell has a marquee piece of high-end technology," but the "fact that HP is aggressively in the coming" is not a good sign for Dell, "Hunt said.

Is Rob Enderle, president of technology research firm the Enderle Group. want "The interesting thing for me is that I 3PAR is worth more than Dell HP. HP think has a deeper background storage. Since they got involved, he did not indicate it, Dell, they have," says Enderle.

Analysts doubt if HP and Dell can agree firepower.

HP has about twice the sales of Dell and is more than three times as profitable. It also has a cash of billions, or more than twice that of Dell.

HP also has in the past that it showed no fear of the big-ticket purchases. While Dell bought last acquisition of more than billion, Perot Systems has been for almost billion in 2009, HP already has an established track record of big-ticket – in 2001, HP Compaq bought for billions, a business that one of the pioneers in from the PC and laptop market and reinforces its presence in the software and IT services market by scooping up IT consulting firm EDS in 2008 for 0.9 billion euros. Over the last one year, HP also a few billion-plus buys – it was true network device maker 3Com Corp. for .7 billion in November 2009 and April this year to buy agreed 0.2 billion for smartphone manufacturer Palm Inc. pay

"HP is winning," said Roy's Wedbush. "Dell just not the ammunition. HP has to buy the balance sheet has something."

Is Cross Research analyst Shannon Cross. "Both companies have on the ability to make an offer, but HP has a significant cash balance and substantial cash flow, and it has over twice the revenue from Dell," said Cross.

But the price, but one important consideration is not everything for 3PAR, as they grow to a stable owner and captain to help. In this regard, HP has established itself as a company that integrates the various business categories, and still turns out has proved successful. The technology giant may have to buy, in fact, his early successes of 3Com. It can also 3PAR services to a much wider range of customers, increasing their sales.

In comparison, Dell, HP is always trailing almost all professions and even now it looks like Scrappy to obtain the groundwater in the server and attempts IT services market. Yes to Dell can to ensure the success of EqualLogic point – it bought EqualLogic late 2007 for 4 billion, which was worth about 10 times the annual turnover of the company at this time. EqualLogic is now approaching 0 million years sales. But Dell can go a long way to go to emulate the success of HP.

, HP sees the favorites to buy 3PAR.

But HP is not resting easy until, as one analyst says, "makes the check-out counter."

The reason is because the race is to buy 3PAR is far from over and as HP and Dell, Oracle, the world's second largest software manufacturer after Microsoft, is also to expand its Enterprise Technology Business by deal making. He bought Sun Microsystems for around 0.3 billion to expand into hardware and 3PAR's a good thing has to fit its portfolio. And Oracle is one of the few technology companies, has pockets deep enough to beat HP and Dell.

Other technology giants like IBM and EMC are not expected to challenge the call, as they already offer high-end storage solutions.

Advise 3PAR is the veteran technology banker Frank Quattrone and his outfit Qatalyst Partners. HP's financial adviser is JPMorgan Chase & Co., while Credit Suisse advised on the deal on the Dell.

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