HP, locked in a short but violent bidding war with Dell over the acquisition of storage virtualization vendor 3PAR, on Thursday afternoon upped the ante with an offer to acquire 3PAR for $27 per share.
HP's new offer comes just hours after Dell on Thursday increased its offer to acquire 3PAR for $24.30 per share.
Dell started the bidding Augusts 16 at $1.15 billion for storage virtualization vendor 3PAR, followed Monday by HP's $1.6 billion bid for 3PAR, has turned the pursuit for 3PAR into a full-fledged bidding war.
HP's newest bid, at $27 per share, represents a total offer for 3PAR of $1.8 billion, or about 11 percent greater than Dell's earlier offer.
3PAR is a Fremont, Calif.-based developer of enterprise-class storage arrays featuring such services as clustering, tiered storage, and thin provisioning, which allows applications to be configured with more storage capacity than is physically available.
Thin provisioning, when combined with those other services, allows storage customers to avoid purchasing excess storage capacity to meet unexpected future requirements, and is fast becoming a key storage feature as customers look to cut hardware acquisition costs as well as the power and cooling costs associated with hardware, as well as a key technology for building cloud infrastructures.
HP, in its newest offer to acquire 3PAR, said 3PAR would be a big part of HP's move to develop its converged infrastructure strategy of bringing storage, server, and networking solutions into a single architecture, and that high-performance storage systems will strengthen ability to deliver the highest levels of storage performance, efficiency and scalability.
The acquisition of 3PAR is important to both Dell and HP as both look for ways to beef up their enterprise storage offerings and look towards cloud computing, said Steve Bishop, CTO of VeriStor Systems, an Atlanta-based solution provider and partner to both vendors.
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