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HP3-L04 Selling HP 3PAR Storage

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HP3-L04 exam Dumps Source : Selling HP 3PAR Storage

Test Code : HP3-L04
Test cognomen : Selling HP 3PAR Storage
Vendor cognomen : HP
: 31 existent Questions

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HP Selling HP 3PAR Storage

HP ambitions EMC In 3Par All-Flash Storage offensive | killexams.com existent Questions and Pass4sure dumps

Hewlett-Packard is hitting vie EMC difficult with a broad-based 3Par all-flash storage offensive designed to Take the storage leader down a notch.

HP Wednesday unleashed what it is looking the "first all-flash array licensed by means of SAP" -- the HP 3Par StoreServ 7450 -- claiming it'll exhort SAP HANA at 60 p.c much less region and energy than a aggressive alternative from EMC.

HP is comparing its 3Par StoreServ 7450 with SSDs with the EMC VNX7600 array configured with HDDs for a 4-HANA server node, scale-up configuration.

EMC, Hopkinton, Mass., changed into no longer instantly attainable for comment.

[Related: HP CEO Whitman Fires Shots At Dell, VCE]

HP likewise moved aggressively to present up the all-flash heat on EMC by means of making HP scintillate SSD skinny deduplication application accessible on the finished line of HP 3Par StoreServ fashions, from the StoreServ 7200 to the StoreServ 10800. HP prior to now simplest offered the skinny deduplication utility on the 3Par everything scintillate 7450 array.

HP's stepped-up battle in opposition t EMC comes under a month after widespread studies that both businesses had damaged off merger negotiations in what would suffer been one of the crucial greatest mergers within the IT industry.

Now HP, Palo Alto, Calif., is stirring aggressively to Take odds of what it sees as an opening to leapfrog EMC by way of taking a lead within the all-flash storage market.

HP talked about the all-flash offensive is an quick game-changer for the 3Par installed base, with a purpose to acquire an additional 25 petabytes of facts that will likewise subsist accommodated on latest SSDs by way of upgrading to the free HP skinny deduplication application.

"here's a give-away to their reserve in groundwork shoppers valued at about $a hundred and fifty million," said HP vice chairman of Storage advertising and marketing Craig Nunes. "it's first rate to subsist an HP Storage client."

Nunes said the wide-primarily based thin deduplication utility pains combined with a new 3Par FlashAdvisor Toolset that analyzes latest storage environments marks a turning constituent of kinds within the all-flash contest against EMC.

HP is seeing a brace of circumstances where shoppers had been due to the fact an EMC VMAX upgrade and as an alternative chose an HP all-flash option, stated Nunes. "we are telling these EMC purchasers that they may give them the identical tier-one, excessive-end adventure but in all-flash for in many situations a fraction of the can freight of EMC with extra predictable response time for his or her apps," he noted. "we suffer fully stopped [EMC] offers by using going into the all-flash dialog [with EMC customers]."

next: HP Is pressing challenging On EMC XtremIO Disruptive upgrade

HP is likewise urgent complicated on what it's relating to as a disruptive utility upgrade for EMC's XtremIO scintillate 3.0 utility. Nunes, for his part, claims the difficult upgrade will require EMC clients to lower back up everything their data as they better software and then restoration it in the new atmosphere. "That might on no account cruise in an SAP ambiance," spoke of Nunes.

HP partners referred to they descry the HP all-flash offensive as a turning factor in the storage market-share fight with EMC.

"What they are seeing for the primary time in fact is HP taking a management position when it comes to innovation with flash," stated Alan Bibergall, senior vp of Chicago-based Sayers, a $100 million HP Platinum accomplice that is no. 185 on the CRN solution company 500 listing. "EMC has market share throughout the board in typical storage, but they descry them falling behind in flash. it's profile of cool. HP has drawn a line within the sand on flash."

The market is at a scintillate crossroads with many customers which suffer purchased "monolithic storage arrays from EMC for decades definitely getting tired of spending more and more funds for the very performance," said Bibergall. "we are surge to descry a shift the set very typical storage organizations are taking a inspect at alternative ways of addressing the storage problem. "

Bibergall referred to he sees the HP all-flash choices together with the SAP HANA all-flash gear as a door-opener to head after EMC's set because the storage market chief.

Bibergall expects the new HP all-flash offerings will enhance the revenue pipeline through as tons 50 p.c with as much as a 25 p.c to 35 % raise in revenue. "these are large numbers, but they suffer a differentiation point here and they are going to exploit it," he said. "We necessity to."

Bibergall referred to he expects EMC to counter HP by using offering steeper coupon codes and trying to create dubiety available in the market. "EMC is getting a lot of drive from HP after which they suffer acquired everything these shrimp all-flash storage providers nipping at their heels. EMC is going to rep knocked round. Their time has come. they've owned the market for a long time."

next: a ample Market opening To grab share From EMC

Mark Dallmeier, vice chairman and CSO/CMO for IT partners, a Tempe-Ariz.-based HP Platinum partner, No. 424 on the CRN retort company 500 list, said he additionally sees the HP all-flash offensive as a "big market opportunity" for HP to seize share from EMC via making scintillate mainstream.

"HP is the employ of their R&D engine to create an imaginitive probability now not just for customers, but for the channel ecosystem as smartly," he noted. "here's an opening for the channel ecosystem so as to add value by using positioning itself as a strategic adviser and at the equal time rep greater aggressive towards EMC and Take share. scintillate is becoming pervasive. The market is interested and desires to hear the story. Now everything they necessity to achieve is present up."

Dallmeier said he expects the HP all-flash offensive to supply as a majestic deal as a 30 percent to 50 p.c storage earnings uplift for IT partners, which is getting two to 3 times extra "at bats" in opposition t EMC on account of the scintillate market shift. "we're seeing tons greater success, getting a whole lot extra traction as they circulate to bigger-level conversations round mission-vital workloads like SAP HANA."

The HP 3Par StoreServ 7450 SAP all-flash array is a particularly mighty product against EMC, observed Dallmeier. "anytime you've got a goal-developed stack to accelerate utility deliveries like SAP HANA and the options around that you will rep a majestic deal superior traction than promoting a bolt-on technology to an existing storage array," he talked about. "it's stirring the income conversation as much as the stage the set the consumer definitely desires it."

HP is poised to profit share from EMC by way of innovating at each the hardware and software stage in storage, illustrious Dallmeier. "or not it's a no brainer to retreat after EMC; they're the market-share leader," he observed. "I expect HP to shiver up the market over the next 12 to 18 months. The market possibility is massive and the market is up for grabs with one of the vital herbal market disruption going on around Cisco pulling out of the EMC VCE coalition. there is a very majestic market opening for a huge, believable business-main trade like HP to step into the market, stabilize the converged methods market, convey innovation to that market and snare greater share."

published NOV. 5, 2014


Ingram Micro Now providing HP 3PAR applied sciences | killexams.com existent Questions and Pass4sure dumps

SANTA ANA, Calif., Dec. 21, 2010 /PRNewswire/ -- Broadening its enterprise solutions portfolio, Ingram Micro Inc. (NYSE: IM) these days introduced it has improved its relationship with HP and is now licensed to market, promote and aid business-class HP 3PAR Storage techniques.  

recognized as HP's biggest world distribution companion, Ingram Micro is likely one of the first distributors to present HP 3PAR Storage systems and options to the IT channel.  HP bought 3PAR, a number one world provider of utility storage, in September 2010.

"the provision of HP 3PAR technologies from Ingram Micro is significant information for the VAR group and opens up the playing container for channel companions addressing the storage wants of business-classification public and private cloud computing environments," says impress Maisano, senior director, superior Computing Division and HP company Unit, Ingram Micro U.S.

under the improved U.S. distribution relationship, certified HP channel companions can source HP 3PAR T-classification and F-classification Storage programs and utility items from Ingram Micro. Certification, education, earnings enablement and training on and round HP 3PAR Storage systems are additionally attainable to channel partners as fragment of the distributor's committed HP trade Unit and superior Computing Division.

"HP sees ample trade cost within the IT channel and is snug to develop their new 3PAR storage options attainable from Ingram Micro," says frank Rauch, vp, channels, HP. "With the advocate of Ingram Micro's HP enterprise Unit and new advanced Computing Division, they are in a position to hasten up and execute in opposition t their converged infrastructure method. together they present HP channel companions the enablement resources, steer and know-how they necessity to construct and develop a profitable supervene round HP storage options."  

HP 3PAR Storage techniques, including the T-type and F-class programs, are designed to aid channel companions deliver the efficiencies of consolidation while maximizing flexibility, a compund faultfinding for virtualization and cloud computing environments.

"HP 3PAR expertise offers the efficiency and subsequent-gen storage performance they should alleviate their commercial enterprise shoppers' enterprise needs and hybrid cloud environments," says Eric Smith, prevalent manager for ISG expertise Inc., an imaginative HP and Ingram Micro channel companion with 9 areas everything through Kansas, Missouri and Oklahoma. "Being in a position to buy HP 3PAR solutions from Ingram Micro simplifies the sale and offers their crew access to the pre- and submit-revenue and technical steer materials they suffer develop into acquainted with as an Ingram Micro channel partner."

For more assistance about HP 3PAR Storage programs and options contact the HP internal revenue crew at 1-800-456-8000 ext. 76393.

For counsel about Ingram Micro, consult with http://www.ingrammicro.com/.

observe Ingram Micro on Twitter at www.twitter.com/IngramMicroInc.

About Ingram Micro

As a essential link within the expertise cost chain, Ingram Micro creates earnings and profitability opportunities for providers and resellers through entertaining advertising courses, outsourced logistics features, technical guide, economic functions and product aggregation and distribution. The company serves about 150 international locations and is the simplest world broad-primarily based IT distributor with operations in Asia. search recommendation from www.ingrammicro.com.

(emblem:  http://pictures.prnewswire.com/prnh/20100107/IMLOGO)

source Ingram Micro Inc.


Dell cedes records-storage maker 3Par to HP | killexams.com existent Questions and Pass4sure dumps

Hewlett Packard, 3Parassociated PressThe indoors of 3Par headquarters is viewed in Fremont, Caif.

SEATTLE  -- Dell Inc. is walking far from a bidding contest with vie Hewlett-Packard Co. for statistics-storage maker 3Par Inc.

Dell pointed out Thursday it might not suit HP's present to pay $33 per share for 3Par, or about $2.07 billion. Dell's conclusion came barely an hour after 3Par introduced it had got Dell's revised present of $32 per share after which the even more advantageous bid from HP.

In a statement, 3Par referred to Dell's revised present contained new terms that it establish unacceptable, together with a multiyear reseller condense with Dell that would continue to subsist in consequence even if 3Par had been to subsist purchased by using one other company.

The board of 3Par accepted HP's offer, which is eighty three percent above Dell's first present and greater than 3 times what 3Par inventory changed into trading at then. The deal is anticipated to immediate by the cease of the year.

"We took a measured strategy everything the way through the process and suffer decided to conclusion these discussions," talked about Dave Johnson, Dell's senior vice chairman for corporate strategy.

Shares of 3Par increased 80 cents, or 2.5 percent, to immediate Thursday at $32.88. earlier than Dell conceded, 3Par shares had been trading as extravagant as $33.84 as investors anticipated Dell to appropriate or beat HP's $33-per-share offer.

Dell shares jumped 24 cents, or 2 percent, to shut at $12.36, while shares of HP, which is based in Palo Alto, Calif., multiplied forty seven cents, or 1.2 p.c, to $39.68.

Dell, which is primarily based in circular Rock, Texas, made the primary present for 3Par on Aug. 16, at $18 per share. As a fragment of an condense between the two agencies, Fremont, Calif.-based 3Par paid Dell a $72 million termination charge.

HP and Dell, two of the world's biggest very own desktop makers, had been taking a inspect at 3Par as a way to build up their data middle and "cloud computing" corporations, providing application, data storage and different features to purchasers over the information superhighway.

each groups are racing to extend beyond the workstation company, where profits are shrinking. laptop makers were slashing prices to dwell aggressive, while the cost of liquid crystal array screens, reminiscence and other constituents has improved.

The hardware and consulting functions that Dell, HP and others sell to huge enterprises include richer gains; now, technology suppliers descry cloud computing because the subsequent region of large augment and sweeter gains.

more and more, organizations are not buying their own computer servers for inevitable projects anymore. instead, they're paying to suffer application they would suffer stored on those machines dropped at them over the web.

Dell, HP and others are taking talents of the nascent trend by providing cloud-computing services on a subscription basis and promoting gear and software to advocate valued clientele build their personal cloud techniques.

Cloud computing can aid cleave back statistics-core expenses since the techniques are designed to subsist shared by using diverse customers, which spreads out the cost of working pricey equipment. The servers and storage computer systems should ramp up or slash directly based on exact to give everything the valued clientele the identical extravagant stage of service. Storage machines from 3Par are made for that character of device.

Analysts were divided on whether purchasing 3Par changed into a make-or-smash circulate for both Dell or HP. HP has its own line of excessive-end storage home gear corresponding to what 3Par could deliver, while Dell resells know-how from facts-storage chief EMC Corp.

Shaw Wu, a Kaufman Bros. analyst, questioned the extent to which Dell or HP would profit within the immediate time era from buying 3Par. In a synchronous interview, Wu likened the bidding for 3Par with the contest remaining year between EMC and vie NetApp Inc. for an organization known as facts domain. EMC sooner or later won.

"One may argue, has it basically modified EMC? not in reality," Wu observed. "Has not purchasing -- has it damage NetApp? not truly."

however Forrester analysis analyst Andrew Reichman took the opposing stance.

"I admiration that during this acquisition, each HP and Dell can not manage to pay for to lose," said Reichman.

The analyst talked about he doesn't faith there's one other similar company that Dell could buy to circular out its product line.

HP's own technology is additionally getting older, Reichman pointed out. He pointed out that if HP lost after being inclined to pay so much for 3Par, it would suffer had a tough time convincing consumers that its present line of storage gear changed into enough.


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Selling HP 3PAR Storage

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Why Are Dell and HP Fighting Over 3Par? | killexams.com existent questions and Pass4sure dumps

Dell (NASDAQ:DELL) and  Hewlett-Packard (NYSE: HPQ) are mired in a bidding war over 3Par (NYSE:PAR), a leading provider of utility storage solutions for enterprises.

Although the winner of this war will undoubtedly pay a cumbersome premium for 3Par, they deem the deal could profit either company handsomely in the long run. Their analysis follows below.

Utility storage primer

Utility storage is a category of data storage systems designed for utility computing,  a profile of information technology in which storage and computation are delivered as a metered service, rather like a power utility. 3Par’s unique storage technology powers so-called virtual data centers for mid-sized to large enterprises, including monetary service firms, government entities, hosted computing providers, and consumer-oriented Internet companies.

3Par’s value proposition is based on the premise that unused storage is wasteful. Conventional data centers typically employ just 10% to 25% of allocated disk space. By contrast, 3Par’s technology allocates disk space only when applications necessity storage capacity, reducing the total cost of storage by up to 50% according to the company.

As more enterprises shut down their in-house data centers and circle to on-demand storage and computing services delivered via the Internet, their storage needs become more variable and less predictable. This makes 3Par a powerful appropriate for the cloud computing era, which helps clarify why HP and Dell are competing so fiercely to acquire the company’s proprietary technology.

Why are Dell & HP chasing 3Par?

In revenue terms, Dell currently holds 12.7% of the total disk storage systems market. HP’s share is 18%.  In recent years, both companies suffer increased their storage market share via acquisitions. But they soundless trail  industry leaders EMC (NYSE:EMC) and NetApp (NYSE:NTAP) in the fast-growing market for so-called open networked disk storage, a technology that links data storage devices over the Internet.

Corporate data storage requirements suffer doubled every 18 months in recent years, and they expect this trend to continue going forward. They expect the open networked disk storage market to grow at an even faster pace.

3Par’s revenues suffer grown at an annualized rate of 67% over the past five years, reaching $185 million in 2009. Their conservative estimate is that the acquisition could boost Dell or HP’s storage revenues by $400 million in 2011, rising to $2 billion by the cease of the Trefis forecast period.

You can drag the trend-lines in the charts below to create your own storage revenue forecasts for Dell and HP, respectively, and descry how they impact the stock prices for both companies.

Is 3Par worth $2 billion?

Dell opened the bidding for 3Par on August 16, offering $18 per share. By Wednesday, September 1, HP was offering $30 a share to acquire 3Par, or $2 billion. Dell had until midnight Wednesday to match this bid, but the deadline passed with no word from Dell.

On Thursday morning, September 2,  HP raised its bid to $33 a share, valuing 3Par at about $2.4 billion. In a press release, 3Par announced that it considered this present “superior” to Dell’s latest bid of $32 a share and that it intended to dissolve the original merger agreement with Dell.

$2.4 billion is a lot of money to pay for a company that posted $185 million in revenues terminal year. However, they deem the valuation may subsist justified. Here’s why:

By acquiring 3Par, Dell or HP will subsist able to sell packaged products based around the company’s storage solution. This will boost revenues of other divisions, like services and software. They did not factor this multiplier consequence into their analysis above, which is why their revenue estimate might subsist conservative.

3Par’s technology is unique. If either HP or Dell fails to acquire 3Par, it will necessity to duplicate the technology from scratch, incurring  cumbersome R&D costs and potential loss of share in the emerging utility storage market.

You can descry their complete $17.04 stock price estimate for Dell here.

You can descry their complete $54.12 stock price estimate for Hewlett-Packard here.


HP Targets EMC In 3Par All-Flash Storage offensive | killexams.com existent questions and Pass4sure dumps

Hewlett-Packard is hitting vie EMC arduous with a broad-based 3Par all-flash storage offensive designed to Take the storage leader down a notch.

HP Wednesday unleashed what it is calling the "first all-flash array certified by SAP" -- the HP 3Par StoreServ 7450 -- claiming it will exhort SAP HANA at 60 percent less space and power than a competitive alternative from EMC.

HP is comparing its 3Par StoreServ 7450 with SSDs with the EMC VNX7600 array configured with HDDs for a four-HANA server node, scale-up configuration.

EMC, Hopkinton, Mass., was not immediately available for comment.

[Related: HP CEO Whitman Fires Shots At Dell, VCE]

HP likewise moved aggressively to circle up the all-flash heat on EMC by making HP scintillate SSD thin deduplication software available on the complete line of HP 3Par StoreServ models, from the StoreServ 7200 to the StoreServ 10800. HP previously only offered the thin deduplication software on the 3Par everything scintillate 7450 array.

HP's stepped-up battle against EMC comes less than a month after widespread reports that the two companies had broken off merger negotiations in what would suffer been one of the biggest mergers in the IT industry.

Now HP, Palo Alto, Calif., is stirring aggressively to exploit what it sees as a random to leapfrog EMC by taking a lead in the all-flash storage market.

HP said the all-flash offensive is an instant game-changer for the 3Par installed base, which will receive an additional 25 petabytes of data that can subsist accommodated on existing SSDs by upgrading to the free HP thin deduplication software.

"This is a give-away to their installed groundwork customers valued at about $150 million," said HP Vice President of Storage Marketing Craig Nunes. "It is majestic to subsist an HP Storage customer."

Nunes said the broad-based thin deduplication software pains combined with a new 3Par FlashAdvisor Toolset that analyzes existing storage environments marks a turning point of sorts in the all-flash war against EMC.

HP is seeing a number of cases where customers were considering an EMC VMAX upgrade and instead chose an HP all-flash alternative, said Nunes. "We are telling those EMC customers that they can give them the very tier-one, high-end experience but in all-flash for in many cases a fraction of the cost of EMC with more predictable response time for their apps," he said. "We suffer absolutely stopped [EMC] deals by going into the all-flash conversation [with EMC customers]."

NEXT: HP Is Pressing arduous On EMC XtremIO Disruptive Upgrade

HP likewise is pressing arduous on what it is referring to as a disruptive software upgrade for EMC's XtremIO scintillate 3.0 software. Nunes, for his part, claims the troublesome upgrade will require EMC customers to back up everything their data as they upgrade software and then restore it in the new environment. "That could never cruise in an SAP environment," said Nunes.

HP partners said they descry the HP all-flash offensive as a turning point in the storage market-share battle with EMC.

"What they are seeing for the first time really is HP taking a leadership position in terms of innovation with flash," said Alan Bibergall, senior vice president of Chicago-based Sayers, a $100 million HP Platinum ally that is No. 185 on the CRN Solution Provider 500 list. "EMC has market share across the board in traditional storage, but they descry them falling behind in flash. It's kindly of cool. HP has drawn a line in the sand on flash."

The market is at a scintillate crossroads with many customers that suffer bought "monolithic storage arrays from EMC for many years really getting tired of spending more and more money for the very performance," said Bibergall. "We are starting to descry a shift where very traditional storage organizations are looking at different ways of addressing the storage problem. "

Bibergall said he sees the HP all-flash offerings including the SAP HANA all-flash system as a door-opener to retreat after EMC's position as the storage market leader.

Bibergall expects the new HP all-flash offerings will augment the sales pipeline by as much 50 percent with as much as a 25 percent to 35 percent augment in sales. "Those are ample numbers, but they suffer a differentiation point here and they are going to exploit it," he said. "We suffer to."

Bibergall said he expects EMC to counter HP by offering steeper discounts and attempting to create dubiety in the market. "EMC is getting a lot of pressure from HP and then they suffer got everything these shrimp all-flash storage providers nipping at their heels. EMC is going to rep knocked around. Their time has come. They suffer owned the market for a long time."

NEXT: A ample Market opening To Grab share From EMC

Mark Dallmeier, vice president and CSO/CMO for IT Partners, a Tempe-Ariz.-based HP Platinum partner, No. 424 on the CRN Solution Provider 500 list, said he likewise sees the HP all-flash offensive as a "big market opportunity" for HP to grab share from EMC by making scintillate mainstream.

"HP is using their R&D engine to create an innovative opening not just for customers, but for the channel ecosystem as well," he said. "This is an opening for the channel ecosystem to add value by positioning itself as a strategic adviser and at the very time rep more aggressive against EMC and Take share. scintillate is becoming pervasive. The market is interested and wants to hear the story. Now everything they suffer to achieve is present up."

Dallmeier said he expects the HP all-flash offensive to provide as much as a 30 percent to 50 percent storage sales uplift for IT Partners, which is getting two to three times more "at bats" against EMC as a result of the scintillate market shift. "We are seeing much more success, getting much more traction as they rend to higher-level conversations around mission-critical workloads like SAP HANA."

The HP 3Par StoreServ 7450 SAP all-flash array is a particularly stalwart product against EMC, said Dallmeier. "Anytime you suffer a purpose-built stack to accelerate application deliveries like SAP HANA and the solutions around that you are going to rep much better traction than selling a bolt-on technology to an existing storage array," he said. "It is stirring the sales conversation up to the flat where the customer really wants it."

HP is poised to gain share from EMC by innovating at both the hardware and software flat in storage, said Dallmeier. "It's a no-brainer to retreat after EMC; they are the market-share leader," he said. "I expect HP to shiver up the market over the next 12 to 18 months. The market opening is huge and the market is up for grabs with some of the natural market disruption happening around Cisco pulling out of the EMC VCE coalition. There is a really majestic market opening for a large, viable industry-leading company like HP to step into the market, stabilize the converged systems market, bring innovation to that market and capture more share."

PUBLISHED NOV. 5, 2014


Behind The Bidding War: The existent Reasons Why HP And Dell are So Desperate For 3Par | killexams.com existent questions and Pass4sure dumps

As I was writing this, word of the HP / Dell bidding war for 3PAR broke on the front page of Yahoo. This made me laugh, as it typified just how crazy this memoir has become—few things outside of a bidding war develop a storage acquisition sexy enough for mainstream news.

At $30, HP’s current present is the sixth bid, a 200 percent premium over 3PAR’s previous $10 share price. Not only is this insane, but it’s likewise nearly unprecedented in M&A history. And since 3PAR is trading above $32 the market thinks Dell will bid even higher.

First Off, Is 3PAR Really THAT Unique?

Yes and no.

3PAR is a classic disruption play, its value proposition based on the premise that unused storage is wasteful—often times just 10% to 25% of allocated disk space is actually used.

3PAR’s “thin provisioning” technology enables disk space to subsist allocated only when applications necessity capacity, greatly reducing IT management costs. deem of it as storage on a just-enough and just-in-time basis.

In the cloud era, pre-allocation of storage is especially wasteful, because on-demand storage and computing services delivered via the internet suffer wide variability and less deterministic usage patterns. This makes 3PAR a powerful appropriate for data centers, and it’s partly why the technology is suddenly perceived as very valuable.

Not surprisingly large storage vendors suffer been dilatory to adopt technologies like 3PAR’s for a simple reason: making storage more efficient ultimately means selling less gear and is essentially akin to committing commercial suicide.

EMC CEO Joe Tucci actually once went on record admitting as much proverb “If I only suffer hardware and I just preserve helping to develop you more and more efficient at less and less cost, eventually I’m going to hit a wall and it’s going to subsist tough for me to develop money.”

HP’s Vanishing R&D Budget and The impress Hurd Effect

This classic “Innovator’s dilemma” definitely applies to HP. But something else has hamstrung its faculty to innovate in high-end storage, a market HP has been a leader in for many years.

And it’s correlated to former CEO impress Hurd’s recent firing. Word on the street is Hurd wasn’t let retreat for his lookout or even for his embellishment of trivial expense reports. Instead the board kicked him out because his employee approval rating was absolutely atrocious.

And the understanding employees hated him is because he traded short-run profits for long-term innovation by laying off entire design teams and killing HP’s R&D budget—take a inspect at this chart and compare HP to Cisco and IBM, both storage leaders.

In this way, I believe acquiring 3PAR is actually the surge of a secular trend for HP in using M&A to “make good” on the company’s necessity of organic innovation.

Yes that’s right, believe it or not, the existent understanding why HP’s board is obsessed with 3PAR is closely correlated to Hurd’s departure—divisions like HP’s storage group simply haven’t kept pace with peers. I used to sell to HP’s storage groups (as well as Dell and 3PAR) and suffer plenty of friends who uncover me that projects suffer been canned and innovation has languished.

Dell is Desperate for Similar Reasons

Innovation within Dell is even more of an oxymoron. If you thought HP’s R&D allotment was low, compare it to Dell’s. Dell is not an engineering driven company. They are a system integrator desperate for growth outside of the personal computing market.

And storage consolidation threatens Dell for another reason. Storage has traditionally been like a cross selling catalog, with vendors filling in their product portfolios by OEM’ing gear from others—Dell actually resells EMC’s high-end storage gear today. But these cross-sell deals are becoming more tenuous to protect as vendors build out more complete portfolios.

This is because cloud computing requires tangled virtualized resource allocation, management and provisioning. Vendors are increasingly stirring up the stack in providing services beyond hardware, which is everything but a commodity.

Owning 3PAR would give Dell a random to linger in the game and complement the low cease storage solutions it acquired from EqualLogic in 2007. And the Dell board is prepared to demolish the bank since there is a scarcity of other majestic tall cease storage virtualization plays (Pillar Data and Compellent are two of the largest, but don’t suffer 3PAR’s traction).

Why HP Will Probably cease Up with 3PAR

So there you suffer it. With its DNA as a system integrator, Dell doesn’t suffer a hope in hell of organically growing tangled ASICs and software like 3PAR has, and is desperate to rend up the food chain and cease reselling EMC’s portfolio. And the HP board is tacitly admitting it needs to rectify the fact that impress Hurd sort of killed the “HP. Invent” culture. 3PAR would give HP several hundred R&D focused engineers and a talented ASIC team.

The captivating thing about this bidding war is that it conveys a larger lesson about why M&A often fails.

It’s effortless to listen to investment bankers and overpay on acquisitions. But it’s much harder to actually ply post-merger integration. Dell is the faultless example. They suffer essentially no precedent for running an ASIC team, and would Take a company like 3PAR that spent 25% of its revenue on R&D and eventually starve it.

3PAR is a better appropriate for HP, and in the cease it’s likely that they will prevail. It positive seems that way anyway. HP’s board is set out to develop up for lost time and prerogative its innovation ship regardless of cost to shareholders. But the synergy premium for 3PAR will subsist enormous, and history suggests that deals with such a massive allocation of acquisition goodwill generally fail to pay for themselves.

_________________________

Contributor Steve Cheney is an entrepreneur and formerly an engineer & programmer specializing in web and mobile technologies.



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