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If Hewlett Packard development enterprise LP acquires 3Com Corp., HP will likely retain its ProCurve division but cease making its personal commercial enterprise routers, a Canadian analyst noted.
“in the router enviornment they will probably get rid of the HP ProCurve product line,” pointed out Ronald Gruia, Toronto-primarily based software director for rising telecoms at Frost & Sullivan, a San Antonio, Tex.-based analysis company.
Palo Alto, Calif.-based HP introduced Wednesday a pleasant takeover present for Marlborough, Mass.-based 3Com. The settlement has yet to be authorized via shareholders of either business but a further Canadian analyst thinks the move will cause alarm inside the San Jose, Calif. headquarters of the vendor that dominates the switch and router market, Cisco programs Inc.
“Cisco should still probably be scared,” mentioned Mark Tauschek, lead analyst at London, Ont.-primarily based information-Tech analysis neighborhood. “HP is likely some of the few if not the only company that may compete in opposition t it and make a dent in Cisco’s dominance in the business house.”
On a conference name Wednesday evening, HP executives declined to focus on what brand the products would elevate unless after the deal has closed.
Gruia noted HP most effective has 0.2 per cent of the enterprise router market, whereas 3Com has 2.6 per cent.
ProCurve’s main focus is on switches, together with the 2520 Layer 2 series, available with either eight or 24 ports.
but it surely also makes the comfortable Router 7000dl series, designed for small to mid-sized enterprises and agencies with department places of work.HP ProCurve also entered the blade switching market final month with the 6120XG and 6120G, which are available one rack unit dimension and are designed for HP’s BladeSystem enclosure.HP’s network security products currently consist of the ProCurve risk administration services (TMS) zl Module, made for ProCurve 5400zl and 8212zl sequence switches, which includes a firewall, intrusion prevention device and virtual private community concentrator.
“HP ProCurve doesn't have as effective a product providing for enormous commercial enterprise or information centre environments,” Gruia said. “3Com is among the simplest commercial enterprise networking carriers anyway cisco with switches, routers, protection, every little thing. 3Com believes they provide 30 to 40 per cent lower complete charge of ownership” than Cisco.
He introduced HP will gain an abilities as a result of 3Com’s intrusion prevention device (IPS) items, which it inherited when it obtained TippingPoint.3Com will add to HP’s Ethernet switching portfolio, which is already a growing to be competitor to Cisco programs Inc., and add routing products to its lineup.
“each customer I speak to has requested us to do greater networking,” talked about Dave Donatelli, HP’s government vice president and generic supervisor of business servers and networking, in a organized remark. there is little overlap between the two agencies’ products, and it'll be easy to integrate them because each businesses adhere to trade requirements, he brought. “We’re ready to go to market day one with a portfolio,” Donatelli observed.
but the networking supervisor of a Canadian law company says there should be overlap between the ProCurve and 3Com products.
“except they movement short to sift through the overlap and take the better of both worlds and make them one, they run the chance of dropping loyal valued clientele to either company,” said David Komaromi, countrywide supervisor of infrastructure and network services for Toronto-based Fraser Milner Casgrain LLP. “HP has this from the Compaq days, where the manufacturer reputedly still exists.”
Komaromi, who made his feedback in an electronic mail to network World Canada, become regarding HP’s acquisition of Compaq in 2001.Robert Whitely, vice-president and analysis director for security and chance at Forrester research Inc., believes three-quarters of the impetus of the HP-3Com deal it to extend HP’s business in China. the most beneficial 3Com asset is its H3C three way partnership with Huawei technologies Co. Ltd. in that nation and the USA$700M in profits it pulls in, he wrote in an email interview.Cisco made waves earlier this 12 months within the information centre market when it announced its Unified Computing system servers.
“Cisco and HP were on a collision course ever since Cisco entered the data centre market,” Gruia noted, including now HP will be “competing with Cisco on all fronts.”
Drue Reeves, vice-president of facts centre research at Midvale, Utah-based mostly Burton community, referred to there at the moment are two businesses that can severely challenge Cisco: A merged HP-3Com, and Brocade Communications programs Inc., which purchased Foundry Networks Inc. final year for US$3billion. because of this, valued clientele could see extra competition and more sensible choice of items.
“It in fact places pressure on Cisco if HP can develop into a much bigger competitor, as a result of now they can get their servers and their storage and their networking from one play,” he stated. “Cisco, even with u.s.is still lacking a little bit of that storage piece.”
This, Reeves talked about, is why Cisco joined VMware Inc. and EMC Corp. in a knowledge centre virtualization coalition.
“Even with UCS, they don’t have the product depth and breadth in server-land that HP does,” Reeves pointed out of Cisco. “So it’s kind of a race to look who shores up their product portfolio first – will HP shore up its networking portfolio first, or will Cisco have greater servers to challenge HP?”
youngsters Gruia does not believe HP will drop the ProCurve manufacturer, the 3Com acquisition will permit it to push greater ProCurve products, principally in China.“Cisco has a really wide networking portfolio however undoubtedly for HP to have an entire community providing they will have to OEM, acquire or accomplice,” Gruia talked about, which means with out an acquisition, HP would have had to contract production of products it does not already make to yet another company.Whiteley spoke of if the deal goes via HP will pick up large hardware property from 3Com. The TippingPoint protection products would give HP a “enormous asset” to more tightly combine with the smart infrastructure that HP is building, he wrote. HP’s ProCurve division has a core change, nevertheless it didn’t benefit loads of traction, he noted. With 3Com, HP gets a a whole lot extra scalable switch it's an improved fit for high-conclusion datacenter and cloud networking initiatives.
furthermore, he said, H3C-made routers could plug a gap in ProCurve’s line. on the other hand, he delivered, that isn’t a large deal considering the majority of enterprise refresh is on Layer 3 switches, which can be extra important within the datacenter – and, he delivered, the place Cisco doesn’t have reasonably the stranglehold it does on routers.
The HP deal “is clearly about competing with Cisco,” he concluded. “The gloves are off and these two will make excellent opponents ultimately. I’m still perplexed about one of the vital whitespace (i.e. video, collaboration, and mobile service infrastructure) which are still massive gaps where HP falls short from Cisco. despite the fact, HP may be constructing a credible option to UCS, which is the place loads of the action is in facts centres right now.”
“This has received to have (Cisco CEO) John Chambers a bit bit uneasy.”
With files from Stephen Lawson and Howard Solomon
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