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3Par a $2 billion company

8/27/2010 07:56 PM EDT
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jimcondon
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re: 3Par a $2 billion company
jimcondon   9/3/2010 11:53:42 PM
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I think you undervalue those patents. From the article, it's says that 3PAR invested $250M in R&D. If there wasn't patent protection, HP or Dell could build a team and deliver comparable product with a better distribution system. I'd assume they'd require no more than 3Par especially since they could leverage of the research of 3Par. This makes the 3Par patents worth at least $1.75B. Smart move on filing those patents.

SimonAtEHSense
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re: 3Par a $2 billion company
SimonAtEHSense   9/3/2010 1:26:29 PM
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I disagree that this will stifle innovation, small start ups are the risk takers. They have to be to survive and get a foot in the industry. With a couple of exceptions big companies seem to play a defensive role. Let the startup take the risk, if it works then buy them up and scale it up. I don't know which route is best (IPO or sell up) if either are, but I don't think you can say that either would stifle innovation Simon

KB3001
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re: 3Par a $2 billion company
KB3001   9/3/2010 2:17:04 AM
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Dell are a big player in the server and cloud computing infrastructure arena. It makes as much sense to them as to HP to purchase 3Par.

ANON1235460098216
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re: 3Par a $2 billion company
ANON1235460098216   9/2/2010 4:15:55 PM
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Also, anyone who doubts the value of patents, and particularly the value of patents to a smaller company, would do well to consider the 3Par situation. The article notes that 3Par has "backed up" its chips and software with 32 patents. 32 patents!! Consider that. How much would 3Par be worth right now without that "back up" to make it more difficult for a large company to just "swoop in" and take over the market a smaller company had spend ingenuity and sweat developing? Maybe 3Par would only be worth $1B, rather than $2B? In that case, each of those 32 patents is adding about $32M in value to the company!!

ANON1235460098216
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re: 3Par a $2 billion company
ANON1235460098216   9/2/2010 4:06:33 PM
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It's too bad that we seem to have something of an oligopoly situation for the IT industry, where a great new company is bought up, rather than going IPO and becoming, eventually, a new big company. In the long run, this means less competition and less innovation. This is unlike the dot-com days, that were rich in IPOs and, despite all the hype, did produce some new giants like Amazon and Cisco.

high
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re: 3Par a $2 billion company
high   8/30/2010 12:05:56 PM
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Such a wonderful topic for me. http://healthproductadvice.com/bactium-review-does-it-eliminate-the-bacteria-from-your-colon/

Silicon_Smith
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re: 3Par a $2 billion company
Silicon_Smith   8/30/2010 7:54:21 AM
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I don't agree with the comments stating that this is purely an ego issue or a mis-calculated step on part of Dell, or HP for that matter. Lets not forget, these are multibillion dollar corporations with strong market research arms. Whether or not they are good at R&D, one thing they do know is how to do good business. This is a strategic pivot and both must have firm plans in place to squeeze money out of this $2 B investment. It will be foolish to go and develop something similar or compromise for a lesser technology, when you have seen and evaluated a gemstone!

elctrnx_lyf
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re: 3Par a $2 billion company
elctrnx_lyf   8/30/2010 7:09:15 AM
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Technology will always rule as long as there is enough customers to use it. Even though 3par is not as big as Hitachi or other OEM's in this category they have something what future of storage needs. But looks like HP and Dell are going head-on to acquire 3par. Surely HP can take 3par to bigger heights considering their experience in the networking domain but no idea what dell is going to do? I feel Dell will operate this as a separate business until it finds a way to make offer some integrated solutions to sell computers and storage together. Any ideas who can make good use of 3par, is it HP/DELL?

phoenixdave
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re: 3Par a $2 billion company
phoenixdave   8/30/2010 5:01:41 AM
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Large companies buying up brand new small companies that have shown no apparent profitability... Sounds a lot like the do-com days all over again...

goafrit
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re: 3Par a $2 billion company
goafrit   8/29/2010 10:54:39 PM
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The profit may not be there, but the technology has promise. What matters is the technology and people invest for the future. But for 3par, it has not benefited from innovation and technology; rather, it is simple ego of two firms competing.

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