A diary of the thought process behind my investment decisions
if you understood the technology behind the 3par systems you wouldn't make that assertion. for Dell, the addition plugs a hole in their tier 1 offerings and allows them to cut EMC out of their portfolio and capture all the profit themselves from Tier 1 storage systems (expensive to begin with). Also the technology involved in 3Pars grid architecture will dovetail nicely into Dells Equallogic iSCSI systems and vicea-versa. HP on the other hand has the horribly dated EVA storage platform that no one buys anymore unless they are a pure HP only shop. HP bought Left Hand to get into the iSCSI market but that purchase hasn't born much fruit. Couple this with HP's recent problems in leadership and it smells of desperation on their part.
What price do you think is too much?3par had $200 million in revenue last year as a standalone company.
The big question here is whether 3Par has a sustainable technology edge, because storage does not have the stickiness of, say, enterprise software. Next year the customers will be buying whatever is faster and more efficient, regardless of what they are buying this year.
in the storage world faster isn't always better, and the technology doesnt really change much, so much as the hardware gets better performance. storage vendors who can squeeze better performance and capacity out of less tend to do better. i dont know what a good price would be, my main scope is the technology side. 3par fits in very well with what dell has to offer their small to enterprise client base when it comes to a consolidated storage solution. its a superior product offering than say what EMC or a more apples to apples, HP.
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