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HP3-L04 - Selling HP 3PAR Storage - Dump Information

Vendor : HP
Exam Code : HP3-L04
Exam Name : Selling HP 3PAR Storage
Questions and Answers : 31 Q & A
Updated On : April 25, 2019
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HP3-L04 Questions and Answers

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HP3-L04 Selling HP 3PAR Storage

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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

HP ambitions EMC In 3Par All-Flash Storage Offensive | killexams.com Real Questions and Pass4sure dumps

Hewlett-Packard is hitting rival EMC difficult with a broad-based 3Par all-flash storage offensive designed to take the storage leader down a notch.

HP Wednesday unleashed what it is looking the "first all-flash array licensed by means of SAP" -- the HP 3Par StoreServ 7450 -- claiming it'll run SAP HANA at 60 p.c much less area and energy than a aggressive alternative from EMC.

HP is comparing its 3Par StoreServ 7450 with SSDs with the EMC VNX7600 array configured with HDDs for a 4-HANA server node, scale-up configuration.

EMC, Hopkinton, Mass., changed into no longer instantly attainable for comment.

[Related: HP CEO Whitman Fires Shots At Dell, VCE]

HP also moved aggressively to show up the all-flash heat on EMC by means of making HP flash SSD skinny deduplication application accessible on the finished line of HP 3Par StoreServ fashions, from the StoreServ 7200 to the StoreServ 10800. HP prior to now simplest offered the skinny deduplication utility on the 3Par all flash 7450 array.

HP's stepped-up battle in opposition t EMC comes under a month after widespread studies that both businesses had damaged off merger negotiations in what would have been one of the crucial greatest mergers within the IT industry.

Now HP, Palo Alto, Calif., is moving aggressively to take advantage of what it sees as an opportunity to leapfrog EMC by way of taking a lead within the all-flash storage market.

HP talked about the all-flash offensive is an quick game-changer for the 3Par installed base, with a purpose to acquire an additional 25 petabytes of facts that will also be accommodated on latest SSDs by way of upgrading to the free HP skinny deduplication application.

"here's a give-away to our put in base shoppers valued at about $a hundred and fifty million," said HP vice chairman of Storage advertising and marketing Craig Nunes. "it's first rate to be an HP Storage client."

Nunes said the wide-primarily based thin deduplication utility effort combined with a new 3Par FlashAdvisor Toolset that analyzes latest storage environments marks a turning element of kinds within the all-flash conflict against EMC.

HP is seeing a couple of circumstances where shoppers had been due to the fact an EMC VMAX upgrade and as an alternative chose an HP all-flash option, stated Nunes. "we are telling these EMC purchasers that we may give them the identical tier-one, excessive-end adventure but in all-flash for in many situations a fraction of the can charge of EMC with extra predictable response time for his or her apps," he noted. "we have fully stopped [EMC] offers by using going into the all-flash dialog [with EMC customers]."

next: HP Is pressing challenging On EMC XtremIO Disruptive upgrade

HP is also urgent complicated on what it's relating to as a disruptive utility upgrade for EMC's XtremIO flash 3.0 utility. Nunes, for his part, claims the difficult upgrade will require EMC clients to lower back up all their data as they improve software and then restoration it in the new atmosphere. "That might on no account fly in an SAP ambiance," spoke of Nunes.

HP partners referred to they see the HP all-flash offensive as a turning factor in the storage market-share fight with EMC.

"What we are seeing for the primary time in fact is HP taking a management position when it comes to innovation with flash," stated Alan Bibergall, senior vp of Chicago-based Sayers, a $100 million HP Platinum accomplice that is no. 185 on the CRN solution company 500 listing. "EMC has market share throughout the board in typical storage, but we see them falling behind in flash. it's form of cool. HP has drawn a line within the sand on flash."

The market is at a flash crossroads with many customers which have purchased "monolithic storage arrays from EMC for decades definitely getting tired of spending more and more funds for the same performance," said Bibergall. "we are beginning to see a shift the place very typical storage organizations are taking a look at alternative ways of addressing the storage problem. "

Bibergall referred to he sees the HP all-flash choices together with the SAP HANA all-flash equipment as a door-opener to head after EMC's place because the storage market chief.

Bibergall expects the new HP all-flash offerings will enhance the revenue pipeline through as tons 50 p.c with as much as a 25 p.c to 35 % raise in revenue. "these are large numbers, but we have a differentiation point here and we are going to exploit it," he said. "We need to."

Bibergall referred to he expects EMC to counter HP by using offering steeper coupon codes and trying to create uncertainty available in the market. "EMC is getting a lot of drive from HP after which they have acquired all these little all-flash storage providers nipping at their heels. EMC is going to get knocked round. Their time has come. they've owned the market for a long time."

next: a big Market opportunity To grab Share From EMC

Mark Dallmeier, vice chairman and CSO/CMO for IT partners, a Tempe-Ariz.-based HP Platinum partner, No. 424 on the CRN answer company 500 list, said he additionally sees the HP all-flash offensive as a "big market opportunity" for HP to seize share from EMC via making flash mainstream.

"HP is the use of their R&D engine to create an imaginitive probability now not just for customers, but for the channel ecosystem as smartly," he noted. "here's an opportunity for the channel ecosystem so as to add value by using positioning itself as a strategic adviser and at the equal time get greater aggressive towards EMC and take share. Flash is becoming pervasive. The market is interested and desires to hear the story. Now all we need to do is show up."

Dallmeier said he expects the HP all-flash offensive to supply as a good deal as a 30 percent to 50 p.c storage earnings uplift for IT partners, which is getting two to 3 times extra "at bats" in opposition t EMC on account of the flash market shift. "we're seeing tons greater success, getting a whole lot extra traction as we circulate to bigger-level conversations round mission-vital workloads like SAP HANA."

The HP 3Par StoreServ 7450 SAP all-flash array is a particularly mighty product against EMC, observed Dallmeier. "anytime you've got a goal-developed stack to accelerate utility deliveries like SAP HANA and the options around that you will get a good deal superior traction than promoting a bolt-on technology to an existing storage array," he talked about. "it's moving the income conversation as much as the stage the place the consumer definitely desires it."

HP is poised to benefit share from EMC by way of innovating at each the hardware and software stage in storage, noted Dallmeier. "or not it's a no brainer to go after EMC; they're the market-share leader," he observed. "I expect HP to shake up the market over the next 12 to 18 months. The market possibility is massive and the market is up for grabs with one of the vital herbal market disruption going on around Cisco pulling out of the EMC VCE coalition. there is a very good market opportunity for a huge, plausible business-main business like HP to step into the market, stabilize the converged methods market, convey innovation to that market and catch greater share."

published NOV. 5, 2014


Ingram Micro Now providing HP 3PAR applied sciences | killexams.com Real Questions and Pass4sure dumps

SANTA ANA, Calif., Dec. 21, 2010 /PRNewswire/ -- Broadening its enterprise solutions portfolio, Ingram Micro Inc. (NYSE: IM) these days introduced it has improved its relationship with HP and is now licensed to market, promote and aid business-class HP 3PAR Storage techniques.  

recognized as HP's biggest world distribution companion, Ingram Micro is likely one of the first distributors to offer HP 3PAR Storage systems and options to the IT channel.  HP bought 3PAR, a number one world provider of utility storage, in September 2010.

"the provision of HP 3PAR technologies from Ingram Micro is significant information for the VAR group and opens up the playing container for channel companions addressing the storage wants of business-classification public and private cloud computing environments," says Mark Maisano, senior director, superior Computing Division and HP company Unit, Ingram Micro U.S.

under the improved U.S. distribution relationship, certified HP channel companions can source HP 3PAR T-classification and F-classification Storage programs and utility items from Ingram Micro. Certification, education, earnings enablement and training on and round HP 3PAR Storage systems are additionally attainable to channel partners as part of the distributor's committed HP business Unit and superior Computing Division.

"HP sees big business cost within the IT channel and is comfortable to make our new 3PAR storage options attainable from Ingram Micro," says Frank Rauch, vp, channels, HP. "With the support of Ingram Micro's HP enterprise Unit and new advanced Computing Division, we are in a position to speed up and execute in opposition t our converged infrastructure method. together we present HP channel companions the enablement resources, guide and know-how they need to construct and develop a profitable follow round HP storage options."  

HP 3PAR Storage techniques, including the T-type and F-class programs, are designed to aid channel companions deliver the efficiencies of consolidation while maximizing flexibility, a mixture critical for virtualization and cloud computing environments.

"HP 3PAR expertise offers the efficiency and subsequent-gen storage performance we should help our commercial enterprise shoppers' enterprise needs and hybrid cloud environments," says Eric Smith, prevalent manager for ISG expertise Inc., an imaginative HP and Ingram Micro channel companion with 9 areas all through Kansas, Missouri and Oklahoma. "Being in a position to buy HP 3PAR solutions from Ingram Micro simplifies the sale and offers our crew access to the pre- and submit-revenue and technical guide materials we have develop into acquainted with as an Ingram Micro channel partner."

For more assistance about HP 3PAR Storage programs and options contact the HP internal revenue crew at 1-800-456-8000 ext. 76393.

For counsel about Ingram Micro, consult with http://www.ingrammicro.com/.

observe Ingram Micro on Twitter at www.twitter.com/IngramMicroInc.

About Ingram Micro

As a essential link within the expertise cost chain, Ingram Micro creates earnings and profitability opportunities for providers and resellers through entertaining advertising courses, outsourced logistics features, technical guide, economic functions and product aggregation and distribution. The company serves about 150 international locations and is the simplest world broad-primarily based IT distributor with operations in Asia. seek advice from www.ingrammicro.com.

(emblem:  http://pictures.prnewswire.com/prnh/20100107/IMLOGO)

source Ingram Micro Inc.


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

Hewlett Packard, 3Parassociated PressThe indoors of 3Par headquarters is viewed in Fremont, Caif.

SEATTLE  -- Dell Inc. is walking far from a bidding contest with rival Hewlett-Packard Co. for statistics-storage maker 3Par Inc.

Dell pointed out Thursday it might not suit HP's offer to pay $33 per share for 3Par, or about $2.07 billion. Dell's decision came barely an hour after 3Par introduced it had got Dell's revised present of $32 per share after which the even more advantageous bid from HP.

In a statement, 3Par referred to Dell's revised offer contained new terms that it found unacceptable, together with a multiyear reseller contract with Dell that would continue to be in effect even if 3Par had been to be purchased by using one other company.

The board of 3Par accepted HP's offer, which is eighty three percent above Dell's first present and greater than 3 times what 3Par inventory changed into trading at then. The deal is anticipated to close by the end of the year.

"We took a measured strategy all the way through the process and have decided to conclusion these discussions," talked about Dave Johnson, Dell's senior vice chairman for corporate strategy.

Shares of 3Par increased 80 cents, or 2.5 percent, to close Thursday at $32.88. earlier than Dell conceded, 3Par shares had been trading as excessive as $33.84 as investors anticipated Dell to fit or beat HP's $33-per-share offer.

Dell shares jumped 24 cents, or 2 percent, to shut at $12.36, while shares of HP, which is based in Palo Alto, Calif., multiplied forty seven cents, or 1.2 p.c, to $39.68.

Dell, which is primarily based in circular Rock, Texas, made the primary present for 3Par on Aug. 16, at $18 per share. As a part of an contract between the two agencies, Fremont, Calif.-based 3Par paid Dell a $72 million termination charge.

HP and Dell, two of the world's biggest very own desktop makers, had been taking a look at 3Par as a way to build up their data middle and "cloud computing" corporations, providing application, data storage and different features to purchasers over the information superhighway.

each groups are racing to extend beyond the workstation company, where profits are shrinking. laptop makers were slashing prices to dwell aggressive, while the cost of liquid crystal display screens, reminiscence and other constituents has improved.

The hardware and consulting functions that Dell, HP and others sell to huge enterprises include richer gains; now, technology suppliers see cloud computing because the subsequent area of large increase and sweeter gains.

more and more, organizations are not buying their own computer servers for certain projects anymore. instead, they're paying to have application they would have stored on those machines dropped at them over the web.

Dell, HP and others are taking talents of the nascent trend by providing cloud-computing services on a subscription basis and promoting equipment and software to support valued clientele build their personal cloud techniques.

Cloud computing can aid cut back statistics-core expenses since the techniques are designed to be shared by using diverse customers, which spreads out the cost of working pricey equipment. The servers and storage computer systems should ramp up or slash directly based on demand to give all the valued clientele the identical excessive stage of service. Storage machines from 3Par are made for that type of device.

Analysts were divided on whether purchasing 3Par changed into a make-or-smash circulate for both Dell or HP. HP has its own line of excessive-end storage home equipment corresponding to what 3Par could deliver, while Dell resells know-how from facts-storage chief EMC Corp.

Shaw Wu, a Kaufman Bros. analyst, questioned the extent to which Dell or HP would benefit within the close time period from buying 3Par. In a contemporary interview, Wu likened the bidding for 3Par with the contest remaining year between EMC and rival NetApp Inc. for an organization known as facts domain. EMC sooner or later won.

"One may argue, has it basically modified EMC? not in reality," Wu observed. "Has not purchasing -- has it damage NetApp? not truly."

however Forrester analysis analyst Andrew Reichman took the opposing stance.

"I consider that during this acquisition, each HP and Dell can not manage to pay for to lose," said Reichman.

The analyst talked about he doesn't trust there's one other similar company that Dell could buy to circular out its product line.

HP's own technology is additionally getting older, Reichman pointed out. He pointed out that if HP lost after being inclined to pay so much for 3Par, it would have had a tough time convincing consumers that its present line of storage equipment changed into enough.


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Selling HP 3PAR Storage

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Why Are Dell and HP Fighting Over 3Par? | killexams.com real questions and Pass4sure dumps

Dell (NASDAQ:DELL) and  Hewlett-Packard (NYSE: HPQ) are mired in a bidding war over 3Par (NYSE:PAR), a leading provider of utility storage solutions for enterprises.

Although the winner of this war will undoubtedly pay a heavy premium for 3Par, we think the deal could benefit either company handsomely in the long run. Our analysis follows below.

Utility storage primer

Utility storage is a category of data storage systems designed for utility computing,  a form of information technology in which storage and computation are delivered as a metered service, rather like a power utility. 3Par’s unique storage technology powers so-called virtual data centers for mid-sized to large enterprises, including financial service firms, government entities, hosted computing providers, and consumer-oriented Internet companies.

3Par’s value proposition is based on the premise that unused storage is wasteful. Conventional data centers typically use just 10% to 25% of allocated disk space. By contrast, 3Par’s technology allocates disk space only when applications need storage capacity, reducing the total cost of storage by up to 50% according to the company.

As more enterprises shut down their in-house data centers and turn to on-demand storage and computing services delivered via the Internet, their storage needs become more variable and less predictable. This makes 3Par a great fit for the cloud computing era, which helps explain why HP and Dell are competing so fiercely to acquire the company’s proprietary technology.

Why are Dell & HP chasing 3Par?

In revenue terms, Dell currently holds 12.7% of the total disk storage systems market. HP’s share is 18%.  In recent years, both companies have increased their storage market share via acquisitions. But they still trail  industry leaders EMC (NYSE:EMC) and NetApp (NYSE:NTAP) in the fast-growing market for so-called open networked disk storage, a technology that links data storage devices over the Internet.

Corporate data storage requirements have doubled every 18 months in recent years, and we expect this trend to continue going forward. We expect the open networked disk storage market to grow at an even faster pace.

3Par’s revenues have grown at an annualized rate of 67% over the past five years, reaching $185 million in 2009. Our conservative estimate is that the acquisition could boost Dell or HP’s storage revenues by $400 million in 2011, rising to $2 billion by the end of the Trefis forecast period.

You can drag the trend-lines in the charts below to create your own storage revenue forecasts for Dell and HP, respectively, and see how they impact the stock prices for both companies.

Is 3Par worth $2 billion?

Dell opened the bidding for 3Par on August 16, offering $18 per share. By Wednesday, September 1, HP was offering $30 a share to acquire 3Par, or $2 billion. Dell had until midnight Wednesday to match this bid, but the deadline passed with no word from Dell.

On Thursday morning, September 2,  HP raised its bid to $33 a share, valuing 3Par at about $2.4 billion. In a press release, 3Par announced that it considered this offer “superior” to Dell’s latest bid of $32 a share and that it intended to dissolve the original merger agreement with Dell.

$2.4 billion is a lot of money to pay for a company that posted $185 million in revenues last year. However, we think the valuation may be justified. Here’s why:

By acquiring 3Par, Dell or HP will be able to sell packaged products based around the company’s storage solution. This will boost revenues of other divisions, like services and software. We did not factor this multiplier effect into our analysis above, which is why our revenue estimate might be conservative.

3Par’s technology is unique. If either HP or Dell fails to acquire 3Par, it will need to duplicate the technology from scratch, incurring  heavy R&D costs and potential loss of share in the emerging utility storage market.

You can see our complete $17.04 stock price estimate for Dell here.

You can see our complete $54.12 stock price estimate for Hewlett-Packard here.


HP Targets EMC In 3Par All-Flash Storage Offensive | killexams.com real questions and Pass4sure dumps

Hewlett-Packard is hitting rival EMC hard with a broad-based 3Par all-flash storage offensive designed to take the storage leader down a notch.

HP Wednesday unleashed what it is calling the "first all-flash array certified by SAP" -- the HP 3Par StoreServ 7450 -- claiming it will run SAP HANA at 60 percent less space and power than a competitive alternative from EMC.

HP is comparing its 3Par StoreServ 7450 with SSDs with the EMC VNX7600 array configured with HDDs for a four-HANA server node, scale-up configuration.

EMC, Hopkinton, Mass., was not immediately available for comment.

[Related: HP CEO Whitman Fires Shots At Dell, VCE]

HP also moved aggressively to turn up the all-flash heat on EMC by making HP flash SSD thin deduplication software available on the complete line of HP 3Par StoreServ models, from the StoreServ 7200 to the StoreServ 10800. HP previously only offered the thin deduplication software on the 3Par all flash 7450 array.

HP's stepped-up battle against EMC comes less than a month after widespread reports that the two companies had broken off merger negotiations in what would have been one of the biggest mergers in the IT industry.

Now HP, Palo Alto, Calif., is moving aggressively to exploit what it sees as a chance to leapfrog EMC by taking a lead in the all-flash storage market.

HP said the all-flash offensive is an instant game-changer for the 3Par installed base, which will receive an additional 25 petabytes of data that can be accommodated on existing SSDs by upgrading to the free HP thin deduplication software.

"This is a give-away to our installed base customers valued at about $150 million," said HP Vice President of Storage Marketing Craig Nunes. "It is good to be an HP Storage customer."

Nunes said the broad-based thin deduplication software effort combined with a new 3Par FlashAdvisor Toolset that analyzes existing storage environments marks a turning point of sorts in the all-flash war against EMC.

HP is seeing a number of cases where customers were considering an EMC VMAX upgrade and instead chose an HP all-flash alternative, said Nunes. "We are telling those EMC customers that we can give them the same tier-one, high-end experience but in all-flash for in many cases a fraction of the cost of EMC with more predictable response time for their apps," he said. "We have absolutely stopped [EMC] deals by going into the all-flash conversation [with EMC customers]."

NEXT: HP Is Pressing Hard On EMC XtremIO Disruptive Upgrade

HP also is pressing hard on what it is referring to as a disruptive software upgrade for EMC's XtremIO flash 3.0 software. Nunes, for his part, claims the troublesome upgrade will require EMC customers to back up all their data as they upgrade software and then restore it in the new environment. "That could never fly in an SAP environment," said Nunes.

HP partners said they see the HP all-flash offensive as a turning point in the storage market-share battle with EMC.

"What we are seeing for the first time really is HP taking a leadership position in terms of innovation with flash," said Alan Bibergall, senior vice president of Chicago-based Sayers, a $100 million HP Platinum partner that is No. 185 on the CRN Solution Provider 500 list. "EMC has market share across the board in traditional storage, but we see them falling behind in flash. It's kind of cool. HP has drawn a line in the sand on flash."

The market is at a flash crossroads with many customers that have bought "monolithic storage arrays from EMC for many years really getting tired of spending more and more money for the same performance," said Bibergall. "We are starting to see a shift where very traditional storage organizations are looking at different ways of addressing the storage problem. "

Bibergall said he sees the HP all-flash offerings including the SAP HANA all-flash system as a door-opener to go after EMC's position as the storage market leader.

Bibergall expects the new HP all-flash offerings will increase the sales pipeline by as much 50 percent with as much as a 25 percent to 35 percent increase in sales. "Those are big numbers, but we have a differentiation point here and we are going to exploit it," he said. "We have to."

Bibergall said he expects EMC to counter HP by offering steeper discounts and attempting to create uncertainty in the market. "EMC is getting a lot of pressure from HP and then they have got all these little all-flash storage providers nipping at their heels. EMC is going to get knocked around. Their time has come. They have owned the market for a long time."

NEXT: A Big Market Opportunity To Grab Share From EMC

Mark Dallmeier, vice president and CSO/CMO for IT Partners, a Tempe-Ariz.-based HP Platinum partner, No. 424 on the CRN Solution Provider 500 list, said he also sees the HP all-flash offensive as a "big market opportunity" for HP to grab share from EMC by making flash mainstream.

"HP is using their R&D engine to create an innovative opportunity not just for customers, but for the channel ecosystem as well," he said. "This is an opportunity for the channel ecosystem to add value by positioning itself as a strategic adviser and at the same time get more aggressive against EMC and take share. Flash is becoming pervasive. The market is interested and wants to hear the story. Now all we have to do is show up."

Dallmeier said he expects the HP all-flash offensive to provide as much as a 30 percent to 50 percent storage sales uplift for IT Partners, which is getting two to three times more "at bats" against EMC as a result of the flash market shift. "We are seeing much more success, getting much more traction as we move to higher-level conversations around mission-critical workloads like SAP HANA."

The HP 3Par StoreServ 7450 SAP all-flash array is a particularly strong product against EMC, said Dallmeier. "Anytime you have a purpose-built stack to accelerate application deliveries like SAP HANA and the solutions around that you are going to get much better traction than selling a bolt-on technology to an existing storage array," he said. "It is moving the sales conversation up to the level where the customer really wants it."

HP is poised to gain share from EMC by innovating at both the hardware and software level in storage, said Dallmeier. "It's a no-brainer to go after EMC; they are the market-share leader," he said. "I expect HP to shake up the market over the next 12 to 18 months. The market opportunity is huge and the market is up for grabs with some of the natural market disruption happening around Cisco pulling out of the EMC VCE coalition. There is a really good market opportunity for a large, viable industry-leading company like HP to step into the market, stabilize the converged systems market, bring innovation to that market and capture more share."

PUBLISHED NOV. 5, 2014


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.



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HP HP3-L04 Exam (Selling HP 3PAR Storage) Detailed Information



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