HP Acquires 3Com, Who Moved Whose Cheese?

(EMAILWIRE.COM, November 15, 2009 ) CARDIFF, WALES - IT media headlines indulged in the news about the $2.7 billion HP-3Com deal on Nov.12, 2009. The former is the tycoon of the traditional enterprise server industry; while the latter is an A-listing network devices manufacturer. What will such intermarriage bring to the IT industry?

Merger & acquisition is a quotidian topic in the IT industry. The traditional acquisitions are limited in the same industry, by association between strong enterprises or the way of the great fish eating up the small, to enlarge the market share in a certain domain.

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As the intensification of globalization, particularly the intercommunication and coupling between the IT technologies, the mode of occupying single market by single technology is no longer adequate for todayÂ’s competition. Thus, IT enterprises are thinking about to expand the product lines, meaning to increase the market share and the profits finally.

Tracking from the camp which has been managed for many years to an unfamiliar field is a reasonable choice undoubtedly. This intermarriage wave has become fiercer, especially in 2009. Several tycoons have already declared their acquisition plans: IBM & Oracle plan to buy SUN successively; Dell purchased Perot; Cisco has fixed mind on VMware for long time; and this time, HP holds hands with 3Com.

In the past, there was fierce competition in the same field in IT industry, while in the different field, friendly partnership are commonly seen. Many successful companies strikes rivals in the same field with the help of their partners, to achieve win-win. Take Cisco and HP for example. The former provides switches and the later sells servers. Customers buy from both, happy ending.

If we say that due to HP-3Com deal, HP moved CiscoÂ’s cheese, then, there is another fact that early in March, Cisco released its Unified Computing System, aiming the server market. John Chambers, the president of Cisco once said, Â“IBM is a friend and HP is the enemy.Â” He gets the second part.

Competitions in the future will overstep the bounds of technologies or market. The key to the development of the enterprises is the channel and supply chain. The one who can gain high quality raw materials in time at low prices, and transfer the finished goods into takings, will win.

True battles are gradual and lengthily. The breakthrough and remodeling of the IT enterprises are designed to fight against themselves, rivals and even partners in old days. It is an existential event to the whole IT industry. Actually, the HP-3Com deal is a necessity. Such competition and conflict will become fierce in the future which wonÂ’t matter the question of who moves whose cheese. Market is a gold mine in which everyone gains proportionally with its capabilities.

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Source: EmailWire.com

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HP Acquires 3Com, Who Moved Whose Cheese?