Emerging Trends and Developments in Technology

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Related Topics: Cloud Computing, HP Virtualization Journal

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HP Ousts Dell in the Battle for 3PAR

High-priced acquisitions have become the norm for tech firms thirsty for emerging technology

The last several days have been pretty interesting with tech giants Dell and HP trying to outbid each other for the data storage technology company 3Par .

After Dell made its intention to grab 3PAR ‘s virtualization goodies public, HP did not waste much time to initiate a steep counteroffer of $24 a share fuelling a spell bounding bidding war.

It has turned out that Dell could not really match up to HP's generous and unconditional $33-per-share offer which the board of 3Par found irresistible. Dell certainly could not have been too happy with the outcome as 3PAR's virtualization technology would have been a major asset to boost its cloud computing business which trails behind HP's in more ways than one.

The fact that these big names in high-tech are willing to pay up an astronomical sum for a company like 3PAR that reported a $3 million loss on sales of $194 million last year is testimonial to the kind of cash pile they are sitting on.

Carrying little or no debt at hand and indulging in relentless cost cutting efforts have made the high tech sector richer than most other companies on this painful road to economic recovery. The tech players now seem to be in a tearing rush to dispense with some of that dough through what some might view as "overpriced" acquisitions. The companies are viewing buyouts as an easy strategy to reinvent and reorient themselves in new emerging technologies like cloud computing and virtualization while coming out of the recession.