How did HP beat Dell in 3PAR bid? (4)

Mark Hurd, the company's former CEO, had resigned earlier last month over scrutiny of a sexual harassment investigation.

Additionally, despite the steep premium, HP will stand to benefit from 3PAR' s focus on research and development (R&D), an area where both HP and Dell have lagged behind their competitors.

In the past four years, R&D expenditures at HP, which prides itself on innovation, has fallen more than 21 percent while total sales during that same time increased by nearly 25 percent.

In contrast, 3PAR, which is also a much younger company, has nearly doubled its R&D efforts in the past four years, while increasing sales by almost 200 percent.

All three companies ended the market day Thursday trading higher.

Source:Xinhua


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