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Thursday November 12, 2009
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HP yesterday announced plans to purchase 3Com in a move that's being seen as a direct challenge to Cisco Systems. HP will pay $7.90 per share for a total of around $2. billion. Both HP and 3Com's board of directors have already approved the deal.
"We wanted to create a powerhouse in the networking industry," HP senior vice president Marius Haas said of the multi-billion dollar deal. Asked to comment on the deal, Cisco managed to find a way to pat itself on the back, stating, "While Cisco has a healthy respect for all of our competitors, acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT."
3Com made $1.3 billion last year, with more than half of its profits coming from China.
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November 12, 2009 11:17 PM
Oddly enough I was just in a briefing with HP for a project I'm working on and they brought this up as how they're focused on the future and on the eventual convergence of networking and server/storage technologies.
At the same time they didn't like it too much when it was brought up that it could just as definitively be described as a multi-billion dollar tit-for-tat gesture at Cisco for their heavy investment and push towards UCS as a similar convergence technology.