Dell throws in 3PAR towel
HP pumps fist
Dell has admitted defeat in its attempt to buy 3PAR.
The latest bids for the suddenly most-desired cloud storage product company in the world, 3PAR, were $32/share from Dell, trumped in hours by a $33/share bid from HP. This is more than twice Dell's original bid of $15/share and makes 3PAR worth more than Data Domain when EMC bought it.
Dell will get a $72m bid termination fee from 3PAR. Its last offer contained a clause mentioning a $92m termination fee and a multi-year fixed price contract to resell 3PAR product, which would apply even if 3PAR's ownership changed. Not surprisingly 3PAR management deemed that unacceptable, which was perhaps Dell's intention.
Dave Johnson, Dell's SVP for corporate strategy, said: “We took a measured approach throughout the process and have decided to end these discussions."
It's back to square one for Dell. Quiet satisfaction for EMC, with no 3PAR product threatening its Dell deals, and triumph for HP and David Donatelli, its head of Enterprise Storage, Servers and Networking, who was the public face of HP's bid.
The fallout includes a raft of lawsuits, and the integration of 3PAR product into HP's EVA and XP storage product range... somehow. ®
COMMENTS
So many haters
So in turns.
1. You say HP have overbid but Dell were prepared to pay almost the same valuation. Isn't something worth what people are prepared to pay? Plus are there really alternatives that are at the same advanced stage in their development and with such a strong product line? I don't think so and the general market consensus agrees. Considering just how much of a premium it looks like 3PAR has gone for, the market is actually relatively behind HP's motives. If you google HP 3PAR you will find a raft of opinion that can see why HP values 3PAR at this level.
2. Apart from NetApp, this criticism can be levelled at every vendor! IBM has DS3000, 4000, 5000, 6000, 8000, nSeries, SVC, XIV, SONAS, etc, for example. I've seen information suggesting that HP's product line is moving more towards a NetApp-type commonality so I'd expect 3PAR functionality to be absorbed rather than the product just be sold as is.
3. I wouldn't say a lack of credibility more a lack of scalability. The EVA has ended up as a lower midrange solution, HP need a more scalable solution that isn't in the 'enterprise' price bracket. Plus who can blame them for wanting to own their own high end solution rather than rebadge? HP is obsessed with owning the IP at every level of the IT stack.
Integrate into HP XP Storage?
Why would they - I expect a phased cross-over from HDS to 3PAR (now HP) kit. Existing HP XP kit will can be well supported by HDS under contract to HP when HP decides to drop it. The line about HP XP being HDS kit 'with HP software' is 99% rubbish - it's extremely close to native HDS.
@James : "HP storage strategy - what storage strategy" has been so true for far too long - but the question is now answered. In the near future, it will be HP:3PAR for anything above teensy-SAN.
Smart move by Dell - there's something I've never said before!
Don't need to buy them now - damage has already been done to HP and their lack of credibility for their EVA offerings.
Hopefully they'll stop making it in Early Learning Centre My-First-Little-Array colours and styling.
Cue Pratt Bryant boring everyone to death.....
Can't wait to see him eating humble pie when he realises 3PAR ain't all that
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