3Par...and WWMD (What Would a Manager Do?)

My boyfriend and I took a trip to Milton, Florida this past weekend to celebrate my dad’s birthday. Imagine my surprise when the casual dinner conversation switched from the upcoming seasons of hunting and college football to that of the 3Par-Dell-HP bidding war. I was somewhat surprised that my “regular Joe” boyfriend initiated such a topic, but then, as the saying goes, “money talks.” Apparently, the talk of a $1.8 billion deal had made it all the way to my mamaw’s small-town dinner table.

I must admit I had never heard of 3Par until it was mentioned this past Saturday. So I quickly perused the latest internet news and learned that 3Par is basically like a storage company (Public Storage, for example), but instead of storing people’s stuff, it stores computer/internet data. Storage can be for a short or long term basis and fees vary. The concept of storing computer data and software on the internet in data centers like 3Par is known as cloud computing.

Ok, so what is the $1.8 billion dollars all about? Well, according to the article "3Par Bidding War: Are Dell and HP Crazy?", it turns out cloud computing is seen as a “high growth technology business” because it is less expensive and faster to have data centers, like 3Par manage and store internet data than have major companies like Dell or HP do it in-house, especially for temporary, new, or research endeavors (Goldman, Aug 30, 2010). In addition, 3Par is one of very few major companies, less than 5 actually, that offer cloud storage capabilities and hardware (Goldman). Still, is 3Par, which has not turned an annual profit in the past three years really worth it? What would a manager do?

First, as a manager for either company, why do I need 3Par? Well, for Dell, which currently has no cloud computing technology resources, 3Par is the possible key to future domination of the computing industry (or at least the cloud computing part). As more companies are allowing employees to telecommute, using mobile technology to handle business, and initiating new applications, 3Par starts to seem like a jackpot. For HP, cloud computing is currently outsourced, so to bring 3Par onboard and in-house is definitely a positive factor.

Thus far 3Par seems like a valuable resource, maybe not so much at this exact moment, as in the future. As a manager, am I concerned about the future? Heck yes. HP is out to remain the leader of the computing industry. So strategically, HP needs the 3Par deal simply to block Dell from getting it. Also, HP is operating without a CEO, and this deal shows that business is as usual, even without a CEO leading the way. Dell, who has crept up on HP in the past, needs a big deal to do it again; 3Par is potentially that big deal. The innovative capabilities that 3Par offers could boost either company to new heights, and make no mistake, both companies are obviously willing to pay a lot to go sky high.

Source
Goldman, David. (2010, August 30). 3Par bidding war: Are Dell and HP Crazy? Retrieved from: http://money.cnn.com/2010/08/27/technology/hp_dell_3par/index.htm.