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HP to Buy 3Com for $2.7 BillionHP to Buy 3Com for $2.7 Billion

HP emphasizes 3Com routing technology and market position in China.

Eric Krapf

November 11, 2009

2 Min Read
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HP emphasizes 3Com routing technology and market position in China.

HP is moving to bolster its networking and communications play by acquiring 3Com.3Com has made a push to reassert its former position as a leader in the data networking space, but it's been less of a force in the past year or 2 in enterprise voice. 3Com became one of the early leaders in enterprise voice when it acquired NBX, one of the first IP-PBX startups, but it never came close to competing with its data networking rival Cisco, which also bought its way into the IP-PBX market by acquiring Selsius Systems.

From the press release:

The acquisition of 3Com will dramatically expand HP's Ethernet switching offerings, add routing solutions and significantly strengthen the company's position in China--one of the world's fastest-growing markets--via the H3C offerings. In addition, the combination will add a large and talented research and development team in China that will drive the acceleration of innovations to HP's networking solutions.

3Com also brings to HP best-of-breed network security capabilities through its TippingPoint portfolio. For the past four years, TippingPoint has been the leader in Gartner's "Magic Quadrant" in its evaluation of leading network security products. Approximately 30 percent of the Fortune 1000 companies have already deployed TippingPoint intrusion prevention systems.

3Com also brings to HP best-of-breed network security capabilities through its TippingPoint portfolio. For the past four years, TippingPoint has been the leader in Gartner's "Magic Quadrant" in its evaluation of leading network security products. Approximately 30 percent of the Fortune 1000 companies have already deployed TippingPoint intrusion prevention systems.

No mention there of the 3Com IP telephony products; it'll be interesting to see whether HP continues on with that product line, or whether it chooses to emphasize its voice partnerships with Avaya, Alcatel-Lucent and Microsoft.

To me, this deal wouldn't really make a heck of a lot of sense were it not for one aspect: China. 3Com is strong in China and has a strong relationship with Huawei. If adding 3Com opens significant markets for HP products and EDS consulting in China, the deal could pay off big-time, even if what 3Com brings to HP in North America is less than overwhelming.

One last curiosity: You want to see the best image of any company to illustrate a merger: Go to 3Com's website and check out the "HP + 3Com: A Powerful 1-2 Punch" graphic. Close-up of gloved fist hitting snapped-back face, sweat flying: If it had been in B&W instead of color, it'd be right out of "Raging Bull."HP emphasizes 3Com routing technology and market position in China.

About the Author

Eric Krapf

Eric Krapf is General Manager and Program Co-Chair for Enterprise Connect, the leading conference/exhibition and online events brand in the enterprise communications industry. He has been Enterprise Connect.s Program Co-Chair for over a decade. He is also publisher of No Jitter, the Enterprise Connect community.s daily news and analysis website.
 

Eric served as editor of No Jitter from its founding in 2007 until taking over as publisher in 2015. From 1996 to 2004, Eric was managing editor of Business Communications Review (BCR) magazine, and from 2004 to 2007, he was the magazine's editor. BCR was a highly respected journal of the business technology and communications industry.
 

Before coming to BCR, he was managing editor and senior editor of America's Network magazine, covering the public telecommunications industry. Prior to working in high-tech journalism, he was a reporter and editor at newspapers in Connecticut and Texas.