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The following content is from an older version of this website, and may not display correctly. Dell has continued the strategy of rapid expansion of its reach in the enterprise IT market by making a deal to buy the maker of storage systems 3Par. The buyer announced Monday an agreement to acquire the Freemont, California-based company for $18 per share in cash ÔÇô a total transaction value of about $1.15bn.
3Par's proposition is a platform that provides a multi-tenant clustered architecture that enables IT organizations to provide storage as a utility. It is architected for "flexible workload consolidation" and optimized for highly virtualized data centers and cloud computing applications. Features include dynamic tiering and thin provisioning for optimization of storage resources.
The acquisition expands Dell's storage-product portfolio, which includes the PowerVault line of storage arrays, storage products by EqualLogic (a company Dell bought for $1.4bn in 2007) and products Dell provides together with EMC ÔÇô result of a partnership the two companies have had since 2001.
Dell announced in June a plan to double the size of its enterprise IT business, which at the time was generating about $16bn in revenue, according the company's CEO Michael Dell. In a meeting with analysts, Michael Dell said the company considered its server-and-storage business to be a "sweet spot for the company as we move forward".
Dell's confidence in the enterprise IT market stems from observing a strong demand that has been created by a "solid corporate refresh that has started", Dell's Senior Vice President and CFO Grian Gladden said during the same meeting in June.
In a news release, Dell said it will maintain existing engineering and sales capabilities of 3Par and will invest in more such capabilities. The buyer does not plan to move 3Par's current operations.
3Par was founded in 1999.
3Par's proposition is a platform that provides a multi-tenant clustered architecture that enables IT organizations to provide storage as a utility. It is architected for "flexible workload consolidation" and optimized for highly virtualized data centers and cloud computing applications. Features include dynamic tiering and thin provisioning for optimization of storage resources.
The acquisition expands Dell's storage-product portfolio, which includes the PowerVault line of storage arrays, storage products by EqualLogic (a company Dell bought for $1.4bn in 2007) and products Dell provides together with EMC ÔÇô result of a partnership the two companies have had since 2001.
Dell announced in June a plan to double the size of its enterprise IT business, which at the time was generating about $16bn in revenue, according the company's CEO Michael Dell. In a meeting with analysts, Michael Dell said the company considered its server-and-storage business to be a "sweet spot for the company as we move forward".
Dell's confidence in the enterprise IT market stems from observing a strong demand that has been created by a "solid corporate refresh that has started", Dell's Senior Vice President and CFO Grian Gladden said during the same meeting in June.
In a news release, Dell said it will maintain existing engineering and sales capabilities of 3Par and will invest in more such capabilities. The buyer does not plan to move 3Par's current operations.
3Par was founded in 1999.