I suppose it was inevitable

There is no question that I'm going to get a lot of ribbing from friends of mine in the business when they read about this. After all, I was at Convergenet prior to it's acquisition by Dell and then again years later at EqualLogic when it was acquired by Dell and - as some have teased me about the inevitability of another Dell acquisition - it now appears that Dell intends to acquire 3PAR too. I only banged my head into the wall once when I was told about it.

At this point, it's all very new so I don't have much to say on the matter, but there are some things about this news that make me think it could be a very good thing. First, Dell clearly wants to be in the storage business, as they've proven the last several years. The EqualLogic acquisition was a starting point for them and they appear to be looking to become a much more serious enterprise storage player now with 3PAR's technology and products.

Second, the way I understand it, they want to have a bigger presence here in the valley, which is about time. As much as it might seem in Round Rock, the technology world doesn't revolve around Texas and it's important to have a corporate and development facility here.

Finally, I like both EqualLogic's and 3PAR's technologies and the people from both companies. Hopefully this will work out so that I'll be able to cover both in StorageRap because that would be fun - serious fun. But for now it's all conjecture and waiting to see what unfolds. You have to wonder about lightning that hits you three times.

# # #

The planned tender offer described in this blog post has not yet commenced. The description contained in this blog post is not an offer to buy or the solicitation of an offer to sell securities. At the time the planned tender offer is commenced, Dell will file a tender offer statement on Schedule TO with the Securities and Exchange Commission (the "SEC"), and 3PAR will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the planned tender offer. The tender offer statement (including an offer to purchase, a related letter of transmittal and other tender offer documents) and the solicitation/recommendation statement will contain important information that should be read carefully before making any decision to tender securities in the planned tender offer. Those materials will be made available to 3PAR’s stockholders at no expense to them by contacting 3PAR’s Investor Relations department at 510-897-4622. In addition, all of those materials (and all other tender offer documents filed with the SEC) will be made available at no charge on the SEC's website: www.sec.gov.

 

Statements in this blog post that relate to future results and events are forward-looking statements based on 3PAR’s current expectations. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits of the transaction; management plans relating to the transaction; any statements of the plans, strategies and objectives of management for future operations, including the execution of integration plans; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; that the transaction may not be timely completed, if at all; that, prior to the completion of the transaction, 3PAR’s business may experience disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, licensees, other business partners or governmental entities; that the parties are unable to successfully implement integration strategies; and other risks that are described in 3PAR’s Securities and Exchange Commission reports, including but not limited to the risks described in 3PAR’s Annual Report on Form 10-K for the fiscal year ended March 31, 2010. 3PAR assumes no obligation and does not intend to update these forward-looking statements.

Comments

[John Martin]

Good luck Marc, looks like some fun times ahead.

It seems like Dell is moving into the storage industry by following EMC's footsteps, though reconciling the disparate technologies will be an interesting exercise, I dont think EMC's quite worked out how to do that properly yet ...

Of course if Dell was going to emulate EMC, they'd have to bundle the EQL and 3PAR kit into different classes of DellVirtualBlockMatrix (DVBM ?), but they'd have to buy a NAS vendor too ... hmm ... ever thought about working for BluArc ?

[Martin G]

Just so we can plan for the future, can you please tell us where you are going next...

Still, going to be interesting seeing the EMC/Dell relationship going forward!

[ToddB]

Well, my friend, I hope you take this as a good sign and accept your fate. As you stated, there are good, talented people at Dell and my interactions with 3Par folks have been nothing but positive.

Hope to see you around soon

[Scott Hanson @DellServerGeek]

Welcome back ! Now if we can just buy VMware so we can get @VirtualTodd back :-) Looking forward to the energy that you bring.

[Richard Siemers]

Marc, pretty shocking news indeed. On the bright side, you may get to move to Texas!

This can't be good news for the Equalogic folks. I am of the opinion that 3PAR hardware eclipses the EQL hardware in every way.

Best wishes to all, I hope very little changes after the dust clears.

-RRS

[Drue Reeves]

Marc,

Congratulations on the 3Par acquisition. I think I understand the comment, but perhaps the pot-shot at Round Rock and Texas wasn't the best idea?

Austin ain't too shabby on hi-tech. Not Silicon Valley, I'll give you that, but not too bad either.

[Bill]

Seems that they can't keep their hands off you. Dell will keep buying your employers until they have you in their clutches!

[Chris Fricke]

I first saw the unofficial word on Duplessie's blog when he posted this morning. At first I thought it was one of his sarcastic rants based on the headline. Once I realized he was serious I laughed out loud. I tried to explain the hilarity to my barely awake co-workers but ... not so much.

Not that it's funny that Dell bought (or is going to buy) 3Par - I think it's a great buy and several of us out there kinda figured it would happen. I think it's incredibly funny, though, that Marc finds himself once again in the clutches of Dell (after all the teasing we've given him over the last couple of years). Well, maybe it's not so hilarious but darn it it made me LOL this morning!

[phil]

"but they'd have to buy a NAS vendor too"

or integrate the IP from exanet, which is what they will do I guess

[Paul P]

Please Marc,

I'm begging you, do not join NetApp.
:-)

[Andrew Storrs]

So you're finally admitting to being a spy for Michael Dell. ;)

Farley, Marc Farley. "Shaken, not stirred... oh and with a side of rick-roll please"

[John Groves]

Marc,

Here is my new storage business plan: Hire Marc Farley and get acquired by Dell.

John Groves

[Tom Trainer]

Marc,

Wow! What a great opportunity for you and for 3Par! I agree with you in that Dell is very serious about storage now. And now they have access to a storage blogger who is serious about storage too - you! Looking forward to the PS60000XVS blogs where the page based data reallocation for VDI support is explained in terms that are enlightening and entertaining. Congratulations and best wishes!

[Robert Weilheim]

I hope Dell doesn't screw the pooch and can retain all of the brilliant 3PAR engineers. If properly executed, this can be good win-win for both companies involved. I hope Dell doesn't slow the rapid pace of development 3PAR customers have enjoyed from their products over the years.

[GregR]

Hmm, funny how the world turns. It seems today is a whole new day. ;)

HPfarley anyone?

[Richard Siemers]

And now HP is dog piling on 3PAR... $25 a share... not a bad way to end your employee stock purchase program!

[Steven Schwartz - The SAN Technologist]

Oh the tangled webs we weave! It will be interesting to see who wins out on this bidding war that has begun!

Long live the BORG!