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HP Wins 3PAR Bidding War, Gets Set For Storage Market Push

By Joseph F. Kovar
September 02, 2010    6:05 PM ET

Page 2 of 4

However, while anyone listening to an HP storage pitch will hear it as part of HP's converged infrastructure message, that pitch is quiet when it comes to HP's midrange EVA line and its enterprise-class XP line, the latter of which is OEMed from Hitachi, Gonzalez said.

"Yet those two products represent the vast majority of HP’s storage revenues," he said. "That silence makes it very difficult to retain the existing EVA installed base, let alone win new customers to those two platforms."

HP's storage challenge is maintaining its current revenue and margin requirements while waiting for its converged infrastructure storage products to gain enough traction to make a difference in market share and the bottom line, Gonzalez said.

As an analogy, Gonzalez said it is like Dave Donatelli, HP's executive vice president and general manager for enterprise servers, storage, and networking, trying to change all four tires on a car as it’s going down the highway at 65 miles per hour in the middle of a sand storm caused by the economy.

"The good news is that he has the four tires," he said. "The trick is how to change them without the car ending up in the ditch."

3PAR will bring to HP a good storage and cloud solution, as well as products which are very competitive, said Dave Butler, president of Enterprise Computing Solutions, a Mission Viejo, Calif.-based solution provider and HP partner.

HP has had a strategy of acquiring the best technology, and 3PAR is no exception, Butler said. The challenge now is to integrate it with its other storage offerings.

"HP is buying technology and integrating it into its overall strategy, and has done a good job of showing where it fits in customer deployments," Butler said. "As an HP partner, there's always a question of when to lead with EVA, XP, LeftHand, and so on. HP has been doing a great job about making it clear."

Next: Integrating 3PAR Into HP



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