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HP3-L04 exam Dumps Source : Selling HP 3PAR Storage

Test Code : HP3-L04
Test Name : Selling HP 3PAR Storage
Vendor Name : HP
Q&A : 31 Real Questions

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HP Selling HP 3PAR Storage

3PAR's Scott to move HP storage | killexams.com Real Questions and Pass4sure dumps

Hewlett-Packard picked up a brand new storage chief in addition to a brand new lead storage platform from its $2.35 billion 3PAR acquisition.

HP nowadays named former 3PAR CEO Dave Scott senior vice president and commonplace manager of its StorageWorks division, reporting to EVP of commercial enterprise servers, storage and networking Dave Donatelli. Scott replaces Dave Roberson, the previous Hitachi statistics programs CEO who will be re-assigned interior of HP.

Scott ran HP’s XP commercial enterprise storage division earlier than taking the 3PAR CEO job.

Scott will oversee a group in an effort to proceed to sell HP’s existing storage platforms, however 3PAR’s InServ household becomes the brand new flagship. “We’re obviously positioning 3PAR entrance and core in the midrange and enterprise markets,” HP StorageWorks advertising and marketing VP Tom Joyce told StorageSoup.com nowadays in a cellphone dialog from Barcelona, the place HP pros are assembly with European media. “we are able to lead with the 3PAR F collection and T sequence, and if a client desires an EVA or XP we’ll sell them.”

Joyce’s comments echoed those made by Donatelli final week at HP’s analyst day. despite the fact HP refreshed its excessive-conclusion P9500 (formerly XP) household last week and Joyce pointed out the vendor plans to improve the EVA, he made it clear that HP sees 3PAR because the key to increasing its storage market share.

HP had eleven% external storage market share in the 2d quarter of this 12 months in response to IDC. That placed HP tied for third with NetApp in the back of EMC and IBM. these numbers show there are a lot of SAN purchasers who haven’t purchased EVA or XP, and HP will chase them with 3PAR. however Joyce spoke of HP won’t push customers off its latest flagship, the EVA.

“EVA has well over one hundred,000 shoppers and a lot of loyalty,” Joyce referred to. “We’ll continue to pressure that product and deliver function functionality on our roadmap for next yr. If clients wish to live on EVA and buy greater, we’ll sell them.”

Joyce pointed out it could be problematic to port 3PAR technologies akin to its skinny provisioning and Adaptive Optimization automatic tiering to other HP platforms, however he pointed out the iSCSI SAN family unit HP received from LeftHand Networks has identical points for the lessen end of the midrange.

“LeftHand is basically below where 3PAR hits, however they've issues in typical: they run on business normal gear, they’re developed to scale out with thin provisioning, and they’re application administration is all inclusive so you don’t should buy the entire options like you do on other arrays,” he talked about.

that implies HP’s future storage portfolio will depend heavily on scale-out architectures, with 3PAR, LeftHand and the X9000 NAS – developed on expertise received from Ibrix – as its important systems.


Dell cedes records-storage maker 3Par to HP | killexams.com Real Questions and Pass4sure dumps

during this file image taken Feb. 16, 2010, the exterior of Hewlett Packard headquarters is shown in Palo Alto, Calif. The bidding is heating up between desktop makers Hewlett-Packard Co. and Dell Inc. for the statistics storage company 3Par Inc., Thursday, Sept. 2, 2010. Even before Dell could make its latest present public, HP has come again with a stronger bid. (AP picture/Paul Sakuma, file) (AP) -- Dell Inc. is running away from a bidding contest with rival Hewlett-Packard Co. for information-storage maker 3Par Inc.

Dell spoke of Thursday it won't match HP's offer to pay $33 per share for 3Par, or about $2.07 billion. Dell's determination came barely an hour after 3Par introduced it had bought Dell's revised present of $32 per share and then the even more suitable bid from HP.

In a statement, 3Par pointed out Dell's revised present contained new terms that it found unacceptable, together with a multiyear reseller agreement with Dell that could remain in impact even if 3Par had been to be bought by using an extra business.

The board of 3Par deemed HP's offer superior. it be eighty three p.c above Dell's first offer and more than thrice what 3Par stock become trading at then.

"We took a measured approach during the system and have determined to conclusion these discussions," spoke of Dave Johnson, Dell's senior vice president for corporate strategy.

Shares of 3Par multiplied seventy four cents, or 2.3 p.c, to $32.eighty two in morning buying and selling Thursday. earlier than Dell conceded, 3Par shares have been buying and selling as excessive as $33.eighty four as traders expected Dell to fit or beat HP's $33-per-share offer.

Dell shares jumped 15 cents, or 1.three p.c, to $12.29, whereas shares of HP, which is based in Palo Alto, Calif., improved 21 cents, or 0.5 p.c, to $39.42.

Dell, which is primarily based in round Rock, Texas, made the primary offer for 3Par on Aug. 16, at $18 per share. As part of an settlement between both businesses, Fremont, Calif.-based mostly 3Par must pay Dell a $72 million termination fee.

HP and Dell, two of the realm's largest personal laptop makers, have been looking at 3Par as a method to build up their records middle and "cloud computing" companies, delivering application, statistics storage and different capabilities to shoppers over the cyber web.

each groups are racing to extend beyond the computer company, where gains are shrinking. computer makers were slashing expenses to reside aggressive, while the charge of lcd screens, memory and other ingredients has multiplied.

The hardware and consulting services that Dell, HP and others sell to huge firms come with richer profits; now, technology providers see cloud computing because the next area of big boom and sweeter earnings.

increasingly, businesses are not purchasing their personal desktop servers for certain initiatives anymore. in its place, they're paying to have utility they might have kept on these machines brought to them over the web.

Dell, HP and others are taking knowledge of the nascent vogue via offering cloud-computing functions on a subscription basis and selling equipment and software to help purchasers construct their personal cloud programs.

Cloud computing can aid reduce records-center charges since the techniques are designed to be shared via assorted shoppers, which spreads out the can charge of working pricey equipment. The servers and storage computers need to ramp up or lower right now in response to demand to give all of the consumers the identical excessive degree of carrier. Storage machines from 3Par are made for that sort of device.

Analysts had been divided on even if purchasing 3Par become a make-or-damage move for either Dell or HP. HP has its personal line of high-end storage appliances comparable to what 3Par may deliver, while Dell resells technology from facts-storage leader EMC Corp.

Shaw Wu, a Kaufman Bros. analyst, puzzled the extent to which Dell or HP would improvement in the near time period from purchasing 3Par. In a contemporary interview, Wu likened the bidding for 3Par with the competition remaining 12 months between EMC and rival NetApp Inc. for an organization called information area. EMC ultimately received.

"One may argue, has it truly converted EMC? no longer in fact," Wu stated. "Has no longer buying - has it hurt NetApp? no longer really."

but Forrester analysis analyst Andrew Reichman took the opposing stance.

"I think that in this acquisition, each HP and Dell can not come up with the money for to lose," spoke of Reichman.

The analyst said he does not believe there is yet another related company that Dell may purchase to round out its product line.

HP's personal know-how is also getting older, Reichman said. He pointed out that if HP misplaced after being willing to pay so a good deal for 3Par, it would have had a tough time convincing purchasers that its current line of storage device changed into satisfactory.

explore extra: 3Par calls HP $30 bid 'advanced'; Dell mulls reply

©2010 The linked Press. All rights reserved. This material might also now not be published, broadcast, rewritten or redistributed.


HP Eliminates obstacles to Storage Modernization With 3PAR on-line Import for EMC Storage | killexams.com Real Questions and Pass4sure dumps

changing ancient EMC VNX and CLARiiON CX4 Arrays With 3PAR StoreServ Storage Is Now less complicated Than Migrating to EMC VNX2

PALO ALTO, CA--(Marketwired - may 1, 2014) - HP (NYSE: HPQ) today delivered HP 3PAR on-line Import help for migrating data from EMC VNX(1) and EMC CLARiiON CX4 arrays to HP 3PAR StoreServ Storage, enabling shoppers to quite simply and directly modernize legacy storage infrastructure.

With assist for HP EVA Storage and now EMC VNX(1) and CLARiiON CX4 storage systems, clients can keep time and funds through performing self-directed platform migrations without professional capabilities engagements or external hardware appliances.

The introduction of virtualization, cloud and IT-as-a-service workloads into the statistics middle adds unpredictable calls for on legacy storage, compromising an organization's capacity to be agile and effective. additionally, moving to a brand new storage equipment frequently requires resource-intensive planning, exchange administration and statistics migration.

to conquer the roadblocks that organisations face when modernizing storage, HP 3PAR on-line Import application now allows customers to migrate statistics with ease from EMC VNX(1) and EMC CLARiiON CX4 programs to any HP 3PAR StoreServ 7000-series, 10000-collection or all-flash 7450 array. This consumer-directed migration utility allows upgrades from legacy EMC arrays to HP 3PAR StoreServ Storage without requiring using host resources, specialized host application or additional hardware appliances. through the use of federated storage improvements and removing reliance on host supplies, statistics migration with 3PAR online Import is less disruptive to applications and can performed quicker than other methods.

For present EMC VNX valued clientele, the newest era of EMC VNX arrays -- or VNX2 -- use an working equipment that is not supported on prior VNX fashions, so the upgrade course from a first-era VNX array to VNX2 requires a full information migration. replacing EMC VNX(1) and CLARiiON CX4 arrays with VNX2 requires forty % to 80 % extra commands than upgrading to HP 3PAR StoreServ,(2) and comprises either statistics migration tools that devour host materials and have an effect on utility efficiency(3) or necessitates the use of expensive extra hardware appliances.(four)

"IT managers are challenged to raise company agility and efficiency but are invariably held back by means of gaps in fragmented and complicated legacy storage programs," said David Scott, senior vice president and conventional supervisor, HP Storage. "HP 3PAR StoreServ Storage promises points not obtainable on EMC VNX and now we're putting off the statistics migration roadblock to enable not pricey tier-1 storage for trapped EMC consumers."

cut back the can charge of storage modernization and facts migration in keeping with trade analysts and the expert IT group at Wikibon, statistics migration has traditionally been a source of ache for purchasers. A Wikibon analyze states that the time to provision new arrays averages 5 months and migration charges exceed one-half of the preliminary array cost itself.(5)

To help consumers in the reduction of storage costs, HP 3PAR online Import software leverages the HP 3PAR Gen4 ASIC to power productive, inline, fats-to-thin conversion that takes completely provisioned (or fats) volumes from a legacy storage gadget and makes use of zero-block deduplication expertise to transform them into thin-provisioned volumes on HP 3PAR StoreServ. It is that this constructed-in fat-to-skinny conversion potential that permits HP to present a 50 p.c capacity savings guarantee to EMC customers as a part of the Get skinny assure program.(6)

HP 3PAR online Import utility is provided to new HP 3PAR StoreServ Storage valued clientele at no charge for 180 days as a part of the HP 3PAR operating gadget (OS) Suite and does not require professional capabilities. This capability that migrating from older EMC VNX(1) and EMC CLARiiON CX4 storage programs to HP 3PAR StoreServ Storage is now extraordinarily within your budget and, in lots of circumstances, low-priced than migrating to VNX2 since no further hardware is ever required.

raise agility with storage born for virtualization and IT as a carrier HP 3PAR StoreServ Storage is a multitenant storage platform with tier-1 resiliency facets and a single operating system that spans high-end, midrange, all-flash and hybrid arrays. This makes it possible for customers to reduce administrative complexity by means of usual management throughout distinct courses of storage. additionally, valued clientele can raise resource utilization by means of consolidating different and unpredictable workloads onto a single device and via nondisruptively load balancing between HP 3PAR StoreServ Storage programs. a common structure also allows for customers to improve to the latest edition of the HP 3PAR OS on any model HP 3PAR StoreServ gadget.(7)

HP should be in Las Vegas may additionally 5-7 to advertise the convenience of migration from EMC VNX(1) and CLARiiON CX4 storage arrays to HP 3PAR StoreServ Storage as part of the "72 Hours of sure" experience. EMC clients in Las Vegas may also four-7 can tweet #72hoursofyes to request a complimentary ride from the airport, coffee or anything to make their go back and forth more exciting. The HP Storage yes crew will try to say "yes" to as many fun and applicable requests as possible.

Pricing and availability

  • HP 3PAR online Import software is covered at no cost for one hundred eighty days with the HP 3PAR OS Suite, version 3.1.2 MU2 and later.
  • HP 3PAR on-line Import assist for EMC VNX(1) and EMC CLARiiON CX4 arrays could be available in June at no further charge, and will be included as part of the 3PAR OS Suite version 3.1.three MU1 and later.
  • About HP HP creates new probabilities for technology to have a significant influence on individuals, corporations, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, capabilities and IT infrastructure, HP offers options for customers' most complicated challenges in every region of the realm. extra counsel about HP is available at http://www.hp.com.

    (1) Applies to first-generation VNX arrays, now not to the latest era, generally referred to as "VNX2."(2) based on HP evaluation and checking out of EMC published steps for migrating 10 hosts the usage of PowerPath Migration Enabler Host copy utility in comparison to 3PAR online Import software.(three) Requires EMC PowerPath Migration Enabler Host copy software.(4) Requires an EMC VPLEX equipment.(5) "The can charge of Storage Array Migration in 2014," Wikibon.org.(6) HP Get skinny assure claims area to terms and prerequisites. particulars can be found at hp.com/go/getthin.(7) contains 3PAR F-type and T-classification arrays.

    This news unlock carries forward-looking statements that involve dangers, uncertainties and assumptions. If such dangers or uncertainties materialize or such assumptions show incorrect, the results of HP and its consolidated subsidiaries may range materially from those expressed or implied by using such forward-searching statements and assumptions. All statements aside from statements of old reality are statements that could be deemed ahead-looking statements, including but now not constrained to statements of the plans, ideas and aims of administration for future operations; any statements concerning anticipated building, efficiency, market share or competitive efficiency regarding products and functions; any statements related to anticipated operational and economic effects; any statements of expectation or perception; and any statements of assumptions underlying any of the foregoing. hazards, uncertainties and assumptions consist of the need to tackle the various challenges dealing with HP's corporations; the aggressive pressures confronted by HP's groups; risks associated with executing HP's method; the have an impact on of macroeconomic and geopolitical developments and hobbies; the need to control third birthday celebration suppliers and the distribution of HP's products and services without difficulty; the coverage of HP's intellectual property assets, together with highbrow property licensed from third events; risks linked to HP's international operations; the building and transition of latest items and functions and the enhancement of existing products and functions to fulfill client wants and respond to rising technological tendencies; the execution and efficiency of contracts via HP and its suppliers, purchasers and companions; the hiring and retention of key employees; integration and different dangers associated with enterprise aggregate and investment transactions; the execution, timing and effects of restructuring plans, together with estimates and assumptions involving the cost and the predicted advantages of imposing those plans; the resolution of pending investigations, claims and disputes; and other dangers which are described in HP's Quarterly record on form 10-Q for the fiscal quarter ended April 30, 2013 and HP's other filings with the Securities and trade commission, together with HP's Annual record on kind 10-okay for the fiscal year ended October 31, 2013. HP assumes no obligation and doesn't intend to update these forward-looking statements.

    © 2014 Hewlett-Packard building business, L.P. The suggestions contained herein is field to alternate without be aware. The only warranties for HP products and features are set forth in the express assurance statements accompanying such items and functions. Nothing herein should still be construed as constituting an additional assurance. HP shall no longer be responsible for technical or editorial error or omissions contained herein.


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    Selling HP 3PAR Storage

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    3PAR's Scott to head HP storage | killexams.com real questions and Pass4sure dumps

    Hewlett-Packard picked up a new storage leader as well as a new lead storage platform from its $2.35 billion 3PAR acquisition.

    HP today named former 3PAR CEO Dave Scott senior vice president and general manager of its StorageWorks division, reporting to EVP of enterprise servers, storage and networking Dave Donatelli. Scott replaces Dave Roberson, the former Hitachi Data Systems CEO who will be re-assigned inside of HP.

    Scott ran HP’s XP enterprise storage division before taking the 3PAR CEO job.

    Scott will oversee a group that will continue to sell HP’s current storage platforms, but 3PAR’s InServ family becomes the new flagship. “We’re clearly positioning 3PAR front and center in the midrange and enterprise markets,” HP StorageWorks marketing VP Tom Joyce told StorageSoup.com today in a phone conversation from Barcelona, where HP execs are meeting with European media. “We will lead with the 3PAR F Series and T Series, and if a customer wants an EVA or XP we’ll sell them.”

    Joyce’s comments echoed those made by Donatelli last week at HP’s analyst day. Although HP refreshed its high-end P9500 (formerly XP) family last week and Joyce said the vendor plans to upgrade the EVA, he made it clear that HP sees 3PAR as the key to increasing its storage market share.

    HP had 11% external storage market share in the second quarter of this year according to IDC. That placed HP tied for third with NetApp behind EMC and IBM. Those numbers show there are a lot of SAN customers who haven’t bought EVA or XP, and HP will chase them with 3PAR. But Joyce said HP won’t push customers off its current flagship, the EVA.

    “EVA has well over 100,000 customers and a lot of loyalty,” Joyce said. “We’ll continue to drive that product and deliver feature functionality on our roadmap for next year. If customers want to stay on EVA and buy more, we’ll sell them.”

    Joyce said it would be difficult to port 3PAR technologies such as its thin provisioning and Adaptive Optimization automated tiering to other HP platforms, but he pointed out the iSCSI SAN family HP acquired from LeftHand Networks has similar features for the lower end of the midrange.

    “LeftHand is definitely below where 3PAR hits, but they have things in common: they run on industry standard gear, they’re built to scale out with thin provisioning, and they’re software management is all inclusive so you don’t have to buy all the options like you do on other arrays,” he said.

    That suggests HP’s future storage portfolio will rely heavily on scale-out architectures, with 3PAR, LeftHand and the X9000 NAS – built on technology acquired from Ibrix – as its major platforms.


    Behind The Bidding War: The Real Reasons Why HP And Dell are So Desperate For 3Par | killexams.com real questions and Pass4sure dumps

    As I was writing this, news of the HP / Dell bidding war for 3PAR broke on the front page of Yahoo. This made me laugh, as it typified just how crazy this story has become—few things outside of a bidding war make a storage acquisition sexy enough for mainstream news.

    At $30, HP’s current offer is the sixth bid, a 200 percent premium over 3PAR’s previous $10 share price. Not only is this insane, but it’s also nearly unprecedented in M&A history. And since 3PAR is trading above $32 the market thinks Dell will bid even higher.

    First Off, Is 3PAR Really THAT Unique?

    Yes and no.

    3PAR is a classic disruption play, its value proposition based on the premise that unused storage is wasteful—often times just 10% to 25% of allocated disk space is actually used.

    3PAR’s “thin provisioning” technology enables disk space to be allocated only when applications need capacity, greatly reducing IT management costs. Think of it as storage on a just-enough and just-in-time basis.

    In the cloud era, pre-allocation of storage is especially wasteful, because on-demand storage and computing services delivered via the internet have wide variability and less deterministic usage patterns. This makes 3PAR a great fit for data centers, and it’s partly why the technology is suddenly perceived as very valuable.

    Not surprisingly large storage vendors have been slow to adopt technologies like 3PAR’s for a simple reason: making storage more efficient ultimately means selling less gear and is essentially akin to committing commercial suicide.

    EMC CEO Joe Tucci actually once went on record admitting as much saying “If I only have hardware and I just keep helping to make you more and more efficient at less and less cost, eventually I’m going to hit a wall and it’s going to be tough for me to make money.”

    HP’s Vanishing R&D Budget and The Mark Hurd Effect

    This classic “Innovator’s dilemma” definitely applies to HP. But something else has hamstrung its ability to innovate in high-end storage, a market HP has been a leader in for many years.

    And it’s correlated to former CEO Mark Hurd’s recent firing. Word on the street is Hurd wasn’t let go for his affair or even for his embellishment of trivial expense reports. Instead the board kicked him out because his employee approval rating was absolutely atrocious.

    And the reason employees hated him is because he traded short-run profits for long-term innovation by laying off entire design teams and killing HP’s R&D budget—take a look at this chart and compare HP to Cisco and IBM, both storage leaders.

    In this way, I believe acquiring 3PAR is actually the beginning of a secular trend for HP in using M&A to “make good” on the company’s lack of organic innovation.

    Yes that’s right, believe it or not, the real reason why HP’s board is obsessed with 3PAR is closely correlated to Hurd’s departure—divisions like HP’s storage group simply haven’t kept pace with peers. I used to sell to HP’s storage groups (as well as Dell and 3PAR) and have plenty of friends who tell me that projects have been canned and innovation has languished.

    Dell is Desperate for Similar Reasons

    Innovation within Dell is even more of an oxymoron. If you thought HP’s R&D allotment was low, compare it to Dell’s. Dell is not an engineering driven company. They are a system integrator desperate for growth outside of the personal computing market.

    And storage consolidation threatens Dell for another reason. Storage has traditionally been like a cross selling catalog, with vendors filling in their product portfolios by OEM’ing equipment from others—Dell actually resells EMC’s high-end storage gear today. But these cross-sell deals are becoming more tenuous to defend as vendors build out more complete portfolios.

    This is because cloud computing requires complex virtualized resource allocation, management and provisioning. Vendors are increasingly moving up the stack in providing services beyond hardware, which is all but a commodity.

    Owning 3PAR would give Dell a chance to stay in the game and complement the low end storage solutions it acquired from EqualLogic in 2007. And the Dell board is prepared to break the bank since there is a scarcity of other good high end storage virtualization plays (Pillar Data and Compellent are two of the largest, but don’t have 3PAR’s traction).

    Why HP Will Probably End Up with 3PAR

    So there you have it. With its DNA as a system integrator, Dell doesn’t have a hope in hell of organically growing complex ASICs and software like 3PAR has, and is desperate to move up the food chain and stop reselling EMC’s portfolio. And the HP board is tacitly admitting it needs to rectify the fact that Mark Hurd sort of killed the “HP. Invent” culture. 3PAR would give HP several hundred R&D focused engineers and a talented ASIC team.

    The interesting thing about this bidding war is that it conveys a larger lesson about why M&A often fails.

    It’s easy to listen to investment bankers and overpay on acquisitions. But it’s much harder to actually handle post-merger integration. Dell is the perfect example. They have essentially no precedent for running an ASIC team, and would take a company like 3PAR that spent 25% of its revenue on R&D and eventually starve it.

    3PAR is a better fit for HP, and in the end it’s likely that they will prevail. It sure seems that way anyway. HP’s board is set out to make up for lost time and right its innovation ship regardless of cost to shareholders. But the synergy premium for 3PAR will be enormous, and history suggests that deals with such a massive allocation of acquisition goodwill generally fail to pay for themselves.

    _________________________

    Contributor Steve Cheney is an entrepreneur and formerly an engineer & programmer specializing in web and mobile technologies.


    Dell cedes data-storage maker 3Par to HP | killexams.com real questions and Pass4sure dumps

    In this file photograph taken Feb. 16, 2010, the exterior of Hewlett Packard headquarters is shown in Palo Alto, Calif. The bidding is heating up between computer makers Hewlett-Packard Co. and Dell Inc. for the data storage company 3Par Inc., Thursday, Sept. 2, 2010. Even before Dell could make its latest offer public, HP has come back with a higher bid. (AP Photo/Paul Sakuma, file) (AP) -- Dell Inc. is walking away from a bidding contest with rival Hewlett-Packard Co. for data-storage maker 3Par Inc.

    Dell said Thursday it won't match HP's offer to pay $33 per share for 3Par, or about $2.07 billion. Dell's decision came barely an hour after 3Par announced it had received Dell's revised offer of $32 per share and then the even stronger bid from HP.

    In a statement, 3Par said Dell's revised offer contained new terms that it found unacceptable, including a multiyear reseller agreement with Dell that would remain in effect even if 3Par were to be bought by another company.

    The board of 3Par deemed HP's offer superior. It's 83 percent above Dell's first offer and more than three times what 3Par stock was trading at then.

    "We took a measured approach throughout the process and have decided to end these discussions," said Dave Johnson, Dell's senior vice president for corporate strategy.

    Shares of 3Par increased 74 cents, or 2.3 percent, to $32.82 in morning trading Thursday. Before Dell conceded, 3Par shares were trading as high as $33.84 as investors expected Dell to match or beat HP's $33-per-share offer.

    Dell shares jumped 15 cents, or 1.3 percent, to $12.29, while shares of HP, which is based in Palo Alto, Calif., increased 21 cents, or 0.5 percent, to $39.42.

    Dell, which is based in Round Rock, Texas, made the first offer for 3Par on Aug. 16, at $18 per share. As part of an agreement between the two companies, Fremont, Calif.-based 3Par must pay Dell a $72 million termination fee.

    HP and Dell, two of the world's largest personal computer makers, were looking at 3Par as a way to build up their data center and "cloud computing" businesses, delivering software, data storage and other services to customers over the Internet.

    Both companies are racing to expand beyond the PC business, where profits are shrinking. Computer makers have been slashing prices to stay competitive, while the cost of LCD screens, memory and other parts has increased.

    The hardware and consulting services that Dell, HP and others sell to big enterprises come with richer profits; now, technology providers see cloud computing as the next area of big growth and sweeter profits.

    Increasingly, companies aren't buying their own computer servers for certain tasks anymore. Instead, they're paying to have software they would have stored on those machines delivered to them over the Internet.

    Dell, HP and others are taking advantage of the nascent trend by offering cloud-computing services on a subscription basis and selling equipment and software to help customers build their own cloud systems.

    Cloud computing can help reduce data-center expenses because the systems are designed to be shared by multiple customers, which spreads out the cost of operating pricey equipment. The servers and storage computers need to ramp up or scale down quickly based on demand to give all the customers the same high level of service. Storage machines from 3Par are made for that kind of system.

    Analysts have been divided on whether buying 3Par was a make-or-break move for either Dell or HP. HP has its own line of high-end storage appliances similar to what 3Par could bring, while Dell resells technology from data-storage leader EMC Corp.

    Shaw Wu, a Kaufman Bros. analyst, questioned the extent to which Dell or HP would benefit in the near term from buying 3Par. In a recent interview, Wu likened the bidding for 3Par with the contest last year between EMC and rival NetApp Inc. for a company called Data Domain. EMC ultimately won.

    "One could argue, has it really transformed EMC? Not really," Wu said. "Has not buying - has it hurt NetApp? Not really."

    But Forrester Research analyst Andrew Reichman took the opposing stance.

    "I think that in this acquisition, both HP and Dell cannot afford to lose," said Reichman.

    The analyst said he doesn't believe there's another comparable company that Dell could buy to round out its product line.

    HP's own technology is also aging, Reichman said. He said that if HP lost after being willing to pay so much for 3Par, it would have had a hard time convincing customers that its existing line of storage system was adequate.

    Explore further: 3Par calls HP $30 bid 'superior'; Dell mulls reply

    ©2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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