The developments around the acquisition of 3Par may have been in the news for the last 48 hours, but it is not yet clear what’s in it for you if Dell actually gets the company. Well, let’s try to find that out right now. 😉
The basic idea Dell has behind the acquisition bid is to strengthen its presence in cloud computing. At the same time the company is relaxed about HP’s rival bid for 3Par.
3Par is in the business of making scalable modular storage platforms which allocate the amount of storage an app needs. This helps in achieving greater device efficiency. Owning the company would give Dell improved presence in large enterprises.
Though the forecasts are not too good in the high end storage business, Dell appears to have seen long term potential better than others (and HP has too!). And indeed smarter computing at an enterprise level has a long way to go. So as you try to consolidate your data centers, you will have to switch to services such as cloud computing for storage.
That’s were 3Par comes in and that’s exactly where Dell hopes to cash in. It is one of few companies which already has the ability to help enterprises modify their data centers in this manner.
If Dell does get 3Par, you can look forward to wide array of storage products such the low-end ones which Dell already has (EqualLogic) and high-end ones which 3Par has, from one vendor (Dell).
And Dell really needs high-end storage products to compete with other big vendors and be able to supply all parts of a data center. Most enterprises looking for a data center, want a single vendor to take care of the entire project, and Dell may be missing out on opportunities due to this right now.
But why then, is Dell so relaxed about the superior bid from HP outdoing its bid by $3 per share? Well, mainly because if the company does not get 3Par, the focus will shift on developing partnerships with smaller vendors to build complete data center portfolios. Cisco Systems, who have recently predicted the future of TVs, is already doing that, and it may be an example worth following.