How did HP beat Dell in 3PAR bid?

Hewlett-Packard Co. (HP) emerged Thursday as the winner against Dell Inc. in an 18-day bidding contest for storage technology firm 3PAR Inc.

The price tag of roughly 2.35 billion U.S. dollars ultimately paid by HP exceeded Dell's original offer of 1.15 billion dollars by nearly 74 percent. At 33 dollars per share, it also represented a more than 300 percent increase over 3PAR's 9.65 dollars per share closing price before Dell announced its initial offer on Monday, August 16.

Since then, the two IT conglomerates have gone back and forth in their efforts to add the Fremont, California-based 3PAR known for its cloud-based computing utility storage capabilities to their line of service offerings.

Both companies have signaled interest in expanding their enterprise services, and cloud computing, or the shift of data and business operation from servers to the Internet, also known as the "cloud," is likely to be key growth component.

In Dell's fiscal year 2010 annual report, company management reported double-digit growth in its cloud computing initiatives in enterprise servers and network solutions, while revenue from the division as a whole remained flat from the previous year.

During HP's latest quarterly analyst call, management also indicated how the company's most recent acquisition of security firm Fortify was meant to complement the increase of cloud computing platforms.



David Scott, President and Chief Executive of 3Par Inc, poses for a photograph at the company's headquarters in Fremont, California August 27, 2010.(Xinhua/Reuters Photo)
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