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

They want the fiber channel they are working on that comes out next year
maybe? Dunno I think it is to bridge the gap. I seriously don't think it is
for home products lol. Maybe I am wrong. We will wait and see.

Tony

On Thu, Nov 12, 2009 at 8:28 AM, Andy Mueller <andymueller713_at_gmail.com>wrote:

> 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
> > >> >
> > >> >
> > >> > Blogs and organic groups at http://www.ccie.net
> > >> >
> > >> >
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> > >>
> > >>
> > >>
> > >>
> > >>
> > >>
> > >>
> > >>
> > >
> > >
> > > --
> > > Muhammad Nasim
> > > Network Engineer
> > > Saudi Arabia
> >
> >
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> >
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Received on Thu Nov 12 2009 - 09:06:27 ART