Re: OT: 3Com to be sold to HP for $2.7b

Could it be similar to the Linksys-Cisco deal? Maybe they are planning
to break into the home market with a new lineup of all-in-one appliances
featuring NAS/wireless, etc? Just speculating. I don't understand what
3com could offer them on an enterprise level. The ProCurve is an
enterprise switch, 3com really hasn't been in that space. It is a very
interesting deal though, guess time will tell.

On Thu, 2009-11-12 at 08:16 -0800, Anthony Faria wrote:
> I have to disagree here I have seen 5 implementations of it near me. I see
> it picking up at least in my area. About the huwei code if they get to many
> customers on it I gurantee they will sue them. IBM and HP lack the core
> switching dept. This is really new but you will see more growth soon. That
> is why HP looked at foundry then bought 3com. Just my opinion no disrespect
> intended.
>
> Tony
>
> On Thu, Nov 12, 2009 at 7:58 AM, Muhammad Nasim <muhammad.nasim_at_gmail.com>wrote:
>
> > I don't think so Cisco UCS is a success yet or it will be surpass HP or IBM
> > in this arena, yes we can hope that Cisco will do but instead I am not
> > seeing any compaines interested in buying at least in middle-east
> >
> > Just my 2 cents : )
> >
> >
> > 2009/11/12 Anthony Faria <tfaria72_at_gmail.com>
> >
> > This is in response to UCS. The server market will die if HP and the others
> >> do not adapt or find a way to put the server right on the backplane of
> >> the
> >> switch. Cisco kind of pulled the rug out of their feet now the server
> >> companies a scrambling to purchase companies. It will take a little time
> >> but
> >> this is the way it is going with VM. It wont be long I think.
> >>
> >> Tony
> >>
> >> On Wed, Nov 11, 2009 at 10:49 PM, Shaughn Smith <shaughn.s_at_cvnnet.co.za
> >> >wrote:
> >>
> >> > Found this interesting
> >> >
> >> >
> >> >
> >> > 3Com to be sold to HP for $2.7b
> >> >
> >> > Computer giant takes aim at Cisco's network business
> >> >
> >> > Computer giant Hewlett-Packard Co.
> >> > <http://finance.boston.com/boston?Page=QUOTE&Ticker=HPQ> will buy
> >> > network equipment maker 3Com Corp. of Marlborough for $2.7 billion in a
> >> > head-on challenge to Cisco Systems Inc.
> >> > <http://finance.boston.com/boston?Page=QUOTE&Ticker=CSCO> , which
> >> > dominates the network business. The deal will position HP to attack the
> >> > heart of Cisco's market, and it comes only a week after Cisco teamed up
> >> > with data storage titan EMC Corp.
> >> > <http://finance.boston.com/boston?Page=QUOTE&Ticker=EMC> of Hopkinton
> >> > to invade HP's stronghold in server computers and storage.
> >> >
> >> >
> >> >
> >> >
> >> >
> >> >
> >> >
> >> > "This is going to rock the networking world,'' said 3Com's president,
> >> > Ronald Sege, adding that HP's global sales force could quickly expand
> >> > 3Com's market share.
> >> >
> >> > 3Com is the second major Massachusetts tech company in the past month to
> >> > be acquired by a Silicon Valley firm, as the tech sector reacts to
> >> > decreased business spending with a wave of consolidation deals. In
> >> > October, Cisco said it will pay $2.9 billion to acquire Tewksbury-based
> >> > Starent Networks, a maker of network gear for cellular telephone
> >> > systems.
> >> >
> >> > Just last week, Cisco teamed up with EMC in a joint venture to combine
> >> > their computing, storage, and networking products in a play for HP's
> >> > core business, enterprise computing equipment. Cisco just started making
> >> > server computers this year.
> >> >
> >> > Tech giants are using mergers and alliances to quickly offer one-stop
> >> > shopping to companies looking to save money by buying all their network
> >> > products from a single vendor, instead of assembling corporate data
> >> > centers one piece at a time. "It improves the efficiency, it improves
> >> > the speed of deployment, and it drives costs down,'' said Abner
> >> > Germanow, a networking analyst at IDC Corp. in Framingham.
> >> >
> >> > The 3Com purchase lets HP fill holes in its product mix far quicker than
> >> > it could by developing its own product line from scratch. Although it is
> >> > one of the world's leading makers of computer servers for big business,
> >> > HP has offered only a limited range of networking hardware. Most of that
> >> > has been at the "edge'' of the network, like the switches that connect a
> >> > roomful of PCs and printers to a corporate system. Cisco dominates the
> >> > "core'' market - switches and routers that distribute the massive
> >> > amounts of data streaming into the network. With 3Com, HP gets a
> >> > ready-made line of core network products to sell.
> >> >
> >> > Buying 3Com "gives us critical mass in a very important market,'' said
> >> > David Donatelli, a former top EMC executive who made a surprise move to
> >> > HP in April. Donatelli will oversee 3Com in his new role as HP's
> >> > executive vice president of enterprise servers and networking, and is
> >> > slated to take over HP's storage operations in April, when his
> >> > noncompete agreement with EMC expires. That will put him on the
> >> > frontline of HP's rivalry with the Cisco-EMC joint venture.
> >> >
> >> > The deal illustrates 3Com's return to prominence after a dramatic
> >> > decline earlier in the decade. 3Com was cofounded in 1979 by Bob
> >> > Metcalfe, one of the inventors of Ethernet, a networking technology that
> >> > has since become a global standard. 3Com was originally based in Santa
> >> > Clara, Calif., and its line of Ethernet products made it one of the most
> >> > successful technology firms of the 1990s, employing as many as 12,000
> >> > workers at its peak.
> >> >
> >> > Tough competition from Cisco and the 2001 collapse of the first Internet
> >> > boom devastated 3Com. The company ceded the enterprise networking market
> >> > to Cisco and slashed thousands of jobs.
> >> >
> >> > 3Com now employs about 5,300 workers worldwide, including about 300 in
> >> > Massachusetts. Sege said he did not know how the HP acquisition would
> >> > affect local 3Com workers.
> >> >
> >> > In 2003, a much diminished 3Com relocated to Marlborough. At about the
> >> > same time, the company launched H3C, a joint venture with Chinese
> >> > networking company Huawei Technologies.
> >> >
> >> > H3C's stable of Chinese engineers developed new high-end networking gear
> >> > that was embraced by fast-growing Chinese companies, and has since
> >> > attracted customers in Europe and Latin America. 3Com claims that 300 of
> >> > China's 500 largest businesses use its products, along with US
> >> > institutions like the National Aeronautics and Space Administration and
> >> > the Massachusetts Institute of Technology.
> >> >
> >> > In 2006, 3Com bought out Huawei's stake in H3C. The following year,
> >> > investment firm Bain Capital teamed up with Huawei on a $2.2 billion bid
> >> > to acquire 3Com.
> >> >
> >> > But federal regulators blocked the bid because 3Com owns TippingPoint, a
> >> > maker of network security gear used by the US Department of Defense.
> >> >
> >> > The regulators noted Huawei's close ties to the Chinese government and
> >> > worried that Huawei might help Chinese intelligence officials circumvent
> >> > TippingPoint technology.
> >> >
> >> > After the Bain-Huawei deal fell apart early last year, 3Com focused on
> >> > developing a new line of core switches and routers that it claims will
> >> > outperform Cisco gear while using much less electricity.
> >> >
> >> > HP's Donatelli said that once the deal is completed, his company's
> >> > 300,000 workers will exclusively use 3Com gear for networking needs.
> >> >
> >> >
> >> >
> >> > CCIE # 23962
> >> >
> >> >
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> >>
> >>
> >
> >
> > --
> > Muhammad Nasim
> > Network Engineer
> > Saudi Arabia
>
>
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Received on Thu Nov 12 2009 - 10:28:46 ART