HP targets data centres with $US2.7b cash offer for 3Com

Stuart Corner
Thursday, 12 November 2009 03:57

IT Industry - Deals

Significantly 3Com will add routers to HP's product portfolio - an essential product if it is to realise its vision of providing a 'complete solution' to the data centre. HP says 3Com's product range will "dramatically expand" its ethernet switching offerings, add routing solutions and significantly strengthen its position in China via the H3C offerings. "In addition, the combination will add a large and talented research and development team in China that will drive the acceleration of innovations to HP's networking solutions."

Also being touted are 3Com's claims that its products perform better, use less power and are easier to administer than those of rivals - exactly what Juniper is claiming for products based on its new Junos Trio chipset and for the ubiquity and uniformity of its Junos operating system across its entire product range.

3Com CEO, Bob Mao, said: "3Com's networking products are based on a modern architecture which has been designed to offer better performance, require less power and eliminate administrative complexity when compared against current network offerings. Our products are enterprise proven and widely deployed in the world's largest banks, manufacturers, Internet service providers, public utilities and retailers."

3Com, according to HP, "also brings to HP best-of-breed network security capabilities through its TippingPoint portfolio." For the past four years, TippingPoint has been the leader in Gartner's Magic Quadrant in its evaluation of leading network security products. Approximately 30 percent of the Fortune 1000 companies have already deployed TippingPoint intrusion prevention systems.

However, two years ago when Bain made its move on 3Com the company was seen as a basket case. Light Reading at the time quoted analyst Mark Sue of RBC Capital Markets describing the deal almost as putting 3Com out of its misery. Sue was quoted on the Bain deal as saying it "may be viewed mostly as a relief than any promising long-term turnaround," and that given its missteps during the past 10 years, 3Com "may end up being the business school case study of what not to do."