Dell and HP, two PC making giants were involved in the bidding contest on Friday for 3Par, a data storage company. According to the latest reports, Dell has backed out from the bidding war after realizing that HP has already surpassed Dell’s offer with $2.07 million.
Shares of all three companies increased after the bidding results came out. Stocks of Dell moved up by 1.3% right after the closure of the bidding. Shares of HP saw a rise of 0.5% and 3Par stocks climbed up by 2.3%.
Dell was willing to pay around $2 millions, a fairly competitive price for the bid; however, analysts believed that despite losing for 3 Par, Dell can get into a better deal with potential data storage firms like CommVault Systems, Compellent Technologies, Pillar Data Systems and DataDirect Networks at relatively low prices. These data storage firms are niche industry players and their stocks have shown healthier growth in the share market.
Dell and HP are planning to expand their businesses by investing in other peripheral services like ‘cloud computing’ that can give them a better push in the future. Cloud computing aids in reducing data-center costs as the systems are programmed to be shared by multiple users, putting an extra load on the server and the storage capacity, which makes it difficult for the systems to provide equally better storage and Internet services to all the users at the same point of time.
3par storage machines are developed to resolve this issue and match-up to the growing needs of the users. Hence, moving into cloud computing services has become imperative for the PC makers as the move can bring greater results and better profits to them.
Along with cloud computing facility, services like data storage, delivering software are some other targets for the PC makers to achieve in order to go beyond their established enterprises and mark a sustainable brand presence.
In the case, Dell has lost an opportunity to acquire 3Par’s support and services; however, the company can always choose other players for time being and divert its investments to newer prospective.
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