TheInfoPro

13 November 2009 – Bill Trussell, Managing Director of Security and Networking Research and Advisory- Hewlett-Packard announced Wednesday that it will acquire 3Com. The second-guessing started almost immediately after the announcement. Questioning “why would they do that?” has almost become a sport, but TIP data shows that the acquisition could benefit HP and create more competition for the networking industry:

• HP is highly rated by networking professionals that self-select to rate it among 14 business and technology relationship criteria, including product quality and reliability.
• While HP has a strong presence as a network management provider, it has struggled to challenge Cisco as the top provider of Ethernet switching and routing.
• The purchase of 3Com provides access to a strong Asia market and instant credibility in the region, which could benefit HP’s other product lines.
• Until now, HP was not a strong player among providers of networking security products and services. With the 3Com acquisition, HP will now hold the TippingPoint intrusion detection/prevention product. While this 3Com product is already highly rated, several users will appreciate the additional heft that HP can put behind it.

Additional questions remain in evaluating HP’s purchase of 3Com, including whether HP will integrate the products into the ProCurve line or keep them separate. Has HP agreed to pay too much for the asset, and as a result, will it need to strip too much expertise out of 3Com to make the purchase work financially? The answers to these questions may not become evident for some time, but in the interim it appears that HP has scored an international distribution channel and a well-respected security product.

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