HP and 3Com Merger: Cisco Competition Intensifies

There has been a long running rivalry between Hewlett-Packard and Cisco Systems, this is now set to intensify with the news that HP have purchased 3Com. This latest merger will help to boost the datacenter credentials as well as its market presence for HP in China.

ZD Net Asia is reporting that Ovum analyst, Adam Jura has been talking about the differences with the US$2.7 billion purchase of 3Com compared to that of SAP and Oracle’s competition with Retek. We bet that Cisco Systems would not see it that way.

It is no secret that HP have already stepped on Cisco’s toes in the networking market with its Procurve product line, this invasion of Cisco’s market will only intensify as time goes on. HP and 3Com will both benefit from this deal, something that does not normally happen with mergers like this.

3Com will be glad of the cash injection and Hewlett Packard will now have a stronger presence in China, it certainly seems like a win win situation.