Feeds

HP buys 3Com for $2.7bn cash

Succumbs to Cisco envy

Choosing a cloud hosting partner with confidence

Hewlett-Packard is taking a swing at Cisco Systems by acquiring networking equipment maker 3Com for $2.7bn cash.

HP said the deal will dramatically expand its Ethernet switching product offerings, add routing technology, and secure itself a major presence in China. In addition, HP will pick up a large research and development operation in China that's dedicated to HP's future networking pursuits.

3Com also provides network security capabilities through its TippingPoint portfolio.

The combination makes plain HP's intentions to sell just about everything for data centers, from servers, storage, management services and networking.

Both HP's and 3Com's board of directors have approved the acquisition, which is expected to close in the first half of 2010.

During an announcement tele-powwow Wednesday afternoon, Dave Donatelli, executive VP of HP's enterprise and networking claimed purchasing 3Com will make Hewlett-Packard number two in the networking market worldwide next to Cisco. It will also give HP a considerable footprint in China, where 3Com has over a 30 per cent share of networking gear.

"Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor," he said in a statement.

Donatelli added during the announcement call that because 3Com and HP data center products are based on open standards, the combined lineup is expected to be fully compatible and ready day-one after the deal closes.

HP emphasizes that the purchase will give it a near-complete portfolio of data center networking products. Donatelli said HP had previously only sold products at the "edge of the network" with its Edge switches. But now, HP is vowing it will run its entire IT infrastructure on its own kit.

“We are confident that we can run our entire global business of 300,000-plus employees, including our next-generation data centers, entirely on the new HP networking solutions,” HP chief information officer Randy Mott said in a statement.

Donatelli said HP was impressed by 3Com's offerings because it has recently-released hardware, "feature-function benefit" over what's offered on the market today, and a "long runway" ahead of it in terms of HP directing future upgrades.

"I think the other really compelling thing here is what they've been able to do in China," he said. "First, they have an incredibly efficient development model in China that is very large-scale already. And they've had incredible success in gaining share in what we think is going to be one of the most critical IT markets going forward."

3Com has an R&D house in China with more than 2,500 engineers stabled. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.