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

There are many in Layer-2 & Up switching market who are already
competing with Cisco and has a good market share. To name a few

1) Juniper
2) Alcatel
3)Riverstone
4)Foundry
5)Extreme
6) Ciena WWP

and many more.

 Interestingly 3com and HP procurve is not even close to there market share.

 I am not sure how they are going to compete with Cisco.

-Raman

On Thu, Nov 12, 2009 at 11:06 AM, Anthony Faria <tfaria72_at_gmail.com> wrote:
> 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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Received on Thu Nov 12 2009 - 11:32:15 ART