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The 3Com acquisition will allow HP to try and compete with Cisco

Hewlett-Packard closed the business day on Wednesday by announcing a $2.7 billion acquisition of networking maker 3Com, as the company tries to increase its presence in China and other key foreign markets.

The deal has been approved by the board of directors of both HP and 3Com, with the deal expected to finalize in early 2010.

"By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry," HP Enterprise Servers and Networking GM Dave Donatelli said in a statement.  "By combining HP ProCurve offerings with 3Com's extensive set of solutions, we will enable customers to build a next-generation network infrastructure that supports customer needs from the edge of the network to the heart of the data center."

Ideally, HP will be able to utilize 3Com's Ethernet business in China and other developing markets, analysts point out.  Immediately following the official close of the acquisition, expect a worldwide push of 3Com products under the HP brand name.  

The company has attempted to wedge its way into Cisco's marketshare, but has been relatively unsuccessful so far -- HP and Cisco have worked together on a number of projects, but continue to butt heads, setting an interesting landscape in networking hardware and software.

It's a continuing trend to see companies try and diversify their product portfolios by either acquiring new technologies or launching new research and development labs.  In markets typically controlled by Cisco, some customers, according to analysts, have long sought another major company move into the industry to help offer new products.


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Presence in consumer maket
By AnnihilatorX on 11/12/2009 8:02:11 AM , Rating: 4
3Com is not well known outside business market, which is a shame really. Their hardware product is excellent. I had bought two of their OfficeConnect wireless routers. Not only was the feature was so complete (QoS, Dynamic DNS auto update, remote control) and both served well over 5 years and never broke down. On the otherhand I have never had any joy using wireless products from other brands such as the infamous Dlink, and other popular brands Buffalo, Belkin, Asus and a strange one from Microsoft.

I hope HP expands its consumer presence on networking products.




RE: Presence in consumer maket
By Master Kenobi (blog) on 11/12/2009 8:39:11 AM , Rating: 2
3Com supplies networking chips to a lot of intel reference system boards. I think while unknown, they are widely invested already in the consumer market.


RE: Presence in consumer maket
By ClownPuncher on 11/12/2009 4:38:08 PM , Rating: 2
They had alot of products on the retail shelves in the late 90's. It seemed like around the dot-com bubble burst they shifted gears, becoming a less well known name on the consumer side of things.


RE: Presence in consumer maket
By Yawgm0th on 11/12/2009 10:28:23 AM , Rating: 2
quote:
On the otherhand I have never had any joy using wireless products from other brands such as the infamous Dlink, and other popular brands Buffalo, Belkin, Asus and a strange one from Microsoft.
Try Cisco. ;)


RE: Presence in consumer maket
By JHBoricua on 11/12/2009 4:24:02 PM , Rating: 2
quote:
On the otherhand I have never had any joy using wireless products from other brands such as the infamous Dlink, and other popular brands Buffalo, Belkin, Asus and a strange one from Microsoft.
Why would you expect this NOT to be the case. You're comparing business grade gear with consumer grade products.


RE: Presence in consumer maket
By drebo on 11/13/2009 12:35:40 AM , Rating: 1
Neither HP nor 3Com make core or WAN routers, though. And the WAN routing market is moving strongly toward IADs, which neither 3Com nor HP has any experience in. HP already has a strong switching portfolio. I'm not sure what they intend by this. It seems very redundant.


Keep it Going
By ICBM on 11/12/2009 9:30:47 AM , Rating: 3
I wonder if they are going to keep the name as well?

I too have had exceptional luck with 3com products. My first wireless router was 2 netgears, and a linksys. All were returned to Best Buy within 2 weeks. I picked up an OfficeConnect wireless router, and little guy is still rolling after 7 years. It never locks up and just plain works. I have been so pleased with it that we have moved all of our equipment here at the office to 3com across the board. 3000 series router, 48-port switch, multiple PoE AP.

As a side note, when I was in Highschool during the late 90s, we had constant problems with network cards(looking at you linksys) working at our lan parties. It wasn't until we all moved to 3com nics that all the problems went away, and the cards just worked.

Please HP, keep 3com going strong!




RE: Keep it Going
By LordanSS on 11/12/2009 9:19:20 PM , Rating: 2
Yep, I second the NICs problem...

For a good while I ended up using cheap NICs, which would often cause me countless problems and headaches.

Eventually, I decided to buy some 3Com cards, and boy what a change that was. Too bad I can't find any more 3Com network cards for sale, wouldn't mind picking up a GbLAN-capable one. The two I have right now (which are 5-6 years old) are only 100Mb cards. =/


RE: Keep it Going
By yuhong on 11/13/2009 2:38:53 AM , Rating: 2
"Too bad I can't find any more 3Com network cards for sale, wouldn't mind picking up a GbLAN-capable one. "
That is because I don't think 3Com ever ended up making Gigabit Ethernet capable NICs.


3Com
By Pessimism on 11/12/2009 9:13:12 AM , Rating: 1
3Com also refused to write 64 bit drivers for its insanely popular 3c90x series of NICs installed in approximately eleventy-five billion corporate PCs. Good riddance.




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