HP to Acquire 3Com for $2.7 Billion

HP and 3Com Corporation (NASDAQ: COMS) (“3Com”) today announced that they have entered into a definitive agreement under which HP will purchase 3Com, a leading provider of networking switching, routing and security solutions, at a price of $7.90 per share in cash or an enterprise value of approximately $2.7 billion. The terms of the transaction have been approved by the HP and 3Com boards of directors.

This combination will transform the networking industry and underscore HP’s next-generation data center strategy built on the convergence of servers, storage, networking, management, facilities and services. The resulting business outcome will help customers simplify the network, deploy a unique and innovative edge-to-core network fabric for the enterprise and improve IT service delivery capabilities, all delivered with best-in-class price-performance.

“Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor,” said Dave Donatelli, executive vice president and general manager, Enterprise Servers and Networking, HP. “By acquiring 3Com, we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry. 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.”

“Our extensive product line and innovative technology together with HP’s breadth and scale will expand our global opportunity,” said Bob Mao, chief executive officer, 3Com. “3Com’s networking products are based on a modern architecture which has been designed to offer better performance, require less power and eliminate administrative complexity when compared against current network offerings. Our products are enterprise proven and widely deployed in the world’s largest banks, manufacturers, Internet service providers, public utilities and retailers.”

The acquisition of 3Com will dramatically expand HP’s Ethernet switching offerings, add routing solutions and significantly strengthen the company’s position in China – one of the world’s fastest-growing markets – via the H3C offerings. In addition, the combination will add a large and talented research and development team in China that will drive the acceleration of innovations to HP’s networking solutions.

3Com also brings to HP best-of-breed network security capabilities through its TippingPoint portfolio. For the past four years, TippingPoint has been the leader in Gartner’s “Magic Quadrant” in its evaluation of leading network security products. Approximately 30 percent of the Fortune 1000 companies have already deployed TippingPoint intrusion prevention systems.

“We are confident that we can run our entire global business of 300,000-plus employees, including our next-generation data centers, entirely on the new HP networking solutions,” said Randy Mott, executive vice president and chief information officer, HP. “Based on our experience and extensive testing of 3Com’s products, we are planning to undertake a global rollout within HP as soon as possible after the completion of the acquisition.”

Under the terms of the merger agreement, 3Com stockholders will receive $7.90 for each share of 3Com common stock that they hold at the closing of the merger. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of 3Com’s stockholders. The transaction is expected to close in the first half of calendar 2010.

HP anticipates that the transaction will be slightly dilutive to fiscal 2010 non-GAAP earnings.

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HP Enables Small and Midsize Businesses to Gain Competitive Edge and Lower Costs

HP today introduced solutions to help small and midsize businesses (SMBs) improve data security, maximize productivity and minimize business risk while significantly reducing costs and energy use.

The new offerings expand the HP Total Care portfolio, which helps SMBs manage, protect and grow their businesses.

“By investing in new IT solutions now, SMBs will be in a stronger position to seize growth opportunities and thrive as the economy rebounds,” said Kathy Chou, vice president, Worldwide Small and Midsize Business Strategy, HP. “With today’s announcement, HP continues to enrich its Total Care offerings to meet the evolving needs of our SMB customers.”

“AMI has surveyed thousands of SMBs in over a dozen countries over the last four quarters, and noted that the current economy has greatly changed the way they purchase technology products and services,” said Anil Miglani, senior vice president, AMI-Partners. “As we exit the global recession, SMBs will try to protect their existing technology investments while making new investments to grow their business and strengthen customer relationships. HP is well-prepared to help SMB customers achieve this balanced growth through its comprehensive Total Care portfolio.”

Improve security and risk management

For SMBs needing increased levels of security to protect their data and keep mission-critical systems running smoothly, HP introduced these new solutions:

* To significantly improve system availability while reducing the risk associated with security breaches and data, the HP Total Care Business Risk Mitigation solution offers customizable configurations of servers, storage, networking and security products. By leveraging this solution and best practices for data management, SMBs can reduce outages by as much as 85 percent.(1)
* For affordable data management, the HP StorageWorks X500 Data Vault Series (starting at $699)(2) allows small businesses to remain competitive by improving the protection of critical business data and automating backups. It enables small businesses with up to 10 PC and Mac clients to store information in a central place and easily share files regardless of employee location. Also, business owners can save money through a low purchase price, which is up to 22 percent less than comparable solutions.(3)
* For maximum uptime, the HP StorageWorks X3000 Network Storage Systems High Availability Bundles combine hardware and software into an efficient shared storage solution for file and application data. Based on the HP StorageWorks X3000 Network Storage Gateways and HP StorageWorks MSA2000 G2 storage arrays, the bundles increase efficiency by automatically eliminating duplicate files, protecting against drive failures and reducing setup time by up to 50 percent.(4) Helping to keep costs in check, the solution does not require extra license fees for networking protocols, file replication or snapshot capabilities.

Enhance productivity, reduce costs

To help customers save money, be more productive and manage security threats, HP announced:

* Improved administrative productivity with the HP ProCurve 1810G Switch Series. This series provides affordable gigabit connectivity that can be configured and maintained without a large or specialized staff. It offer customers flexible deployment options such as a fan-less design for silent operation, mounting options for easy deployment in any location and network security capabilities for protection against denial-of-service attacks. The eight-port model also features a Power-over-Ethernet option for connectivity in locations without readily available power sources. The series also is supported by the ProCurve Lifetime Warranty(5) to help customers better manage their overall networking expenses by providing value and choice for their business applications.
* For an affordable, lightweight notebook that does not compromise performance, the HP ProBook 5310m Notebook PC, starting at $699,(2) is the world’s thinnest full-performance notebook at 0.9-inches thin and 3.7 pounds. Ideal for mobile SMBs, it delivers seven hours of battery life,(6) sports a 13.3-inch diagonal LED high-definition display and a standard voltage processor. HP QuickWeb allows users to access the web in seconds when the notebook is shut down.(7)

Maximize impact, decrease energy use

For SMBs that want to affordably grow while minimizing their environmental impact, HP introduced new printing and online marketing solutions:

* The HP Color LaserJet Professional CP5220 printer series, which is available for purchase in Asia and Europe, offers exceptional print quality and network performance, making it easy for small businesses to affordably market themselves. It is the first printer to offer HP Auto-Off Technology, an industry-leading technology that intelligently senses when there is no print activity and automatically adjusts the power settings. This latest addition to the HP LaserJet family builds on 25 years of leadership in innovation, quality, performance and dependability, and sets the gold standard in business printing.
* To help SMBs easily select the best HP LaserJet printing system for their business, HP announced new sub-branding. Customers can choose from a comprehensive line of HP LaserJet “Professional” printers that provide professional and cost-effective results, while larger organizations can select from the HP LaserJet “Enterprise” portfolio.
* To help small businesses better connect with their customers, HP released a new version of its MarketSplash by HP web service. HP printer and PC customers in the United States can now download and edit hundreds of professional-quality brochure, flyer and business card templates at no charge and print them in-house. Beginning next month, MarketSplash will offer a print fulfillment option that enables customers to select a local print service provider.
* HP and Yahoo! have teamed to help small businesses in the United States easily and affordably create a cohesive brand identity across different online and offline marketing functions. Through the HP Creative Studio, the HP Total Care site and the Yahoo! Small Business portal, customers can receive special offers including web hosting prices for as low as $7.46 a month(2) and access custom design services from Logoworks by HP to create a professional-looking website.

New services and financing offers

To complement its new solutions, HP introduced services and financing offers to help SMBs in the United States purchase, use and manage their IT resources:

* To help SMBs manage costs and make purchasing easy, HP offers flexible financing solutions to deploy next-generation HP technology and services through HP Financial Services, the company’s leasing and lifecycle asset management services subsidiary. From now through Oct. 31, 2009, SMBs can take advantage of the Economic Recovery Lease program, which offers a 36-month plan with fixed price purchase options.
* From now until Dec. 31, 2009, SMBs can receive up to $1,000 cash back when purchasing a new HP LaserJet, Officejet Pro or Scanjet and recycling an old printer through the HP Trade-in and Save Program. Within the last six months, HP has generated nearly $16 million in revenue and sold more than 17,000 units through the program.

New channel offerings

Lastly, HP announced enhanced SMB offerings available through its channel partners, including channel-only products, channel-led Managed Print Services programs and HP certified solutions, that enable SMBs to better compete in today’s marketplace. The offerings include:

* Products available through the channel will initially focus on the workflow, imaging and printing security and job accounting, and device management arenas;
* Greater investment in tools and programs that enable reseller partners to offer Managed Print Services to their customers. In the United States, HP has established new relationships with industry leaders that offer managed print infrastructure and services for resale by value-added reseller partners. In Europe, HP is creating an integrated platform and brokering a network of service partners that will enable resellers to sell contractual print offerings as well as higher valued services not previously available to SMB customers; and
* Certified solutions for the channel that include partner training, product sourcing and technical support for select independent software vendor solutions from HP’s Solutions Business Partner Program.

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HP Expands Networking Portfolio

HP today expanded its networking portfolio with new HP ProCurve offerings integrated with HP BladeSystem infrastructure solutions that enable customers to increase performance, security and management of both physical and virtual environments.

The new offerings include the HP ProCurve 6120 series designed to leverage the award-winning HP BladeSystem infrastructure and an expansion of the HP ProCurve 8200 and 5400 Ethernet switch portfolio. Also included in the announcement is a firmware upgrade to HP Virtual Connect that allows users to change bandwidth on the fly to respond to fluctuations in application requirements.

“The integration of HP ProCurve Networking blade switches with the HP BladeSystem infrastructure is a pivotal change for HP as the company aggressively diverges itself from the competition,” said Nick Lippis, president of analyst firm Lippis Enterprises. “These new HP solutions provide customers the proven reliability of standards-based computing, in addition to lowering maintenance and operational costs.”

Increased network flexibility

* To reduce complexity and deliver investment protection, the 10Gb HP ProCurve 6120XG Blade Switch is designed to meet the demands of virtual machines and high-performance applications. When combined with the HP ProCurve Data Center Connection Manager, the switch delivers automated network connection management and provisioning. Engineered with emerging network standards in mind, the HP ProCurve 6120XG Blade Switch is Converged Enhanced Ethernet (CEE) ready, enabling integration of Ethernet and Fibre Channel networks in the future.
* To simplify the transition from 1Gb to 10Gb, the new HP ProCurve 6120G/XG Blade Switch seamlessly integrates a mix of legacy network equipment in the data center. This allows customers to maximize return on investment for their existing environments.

To address mission-critical local area network (LAN) access, midsize LAN and data center networking, HP ProCurve extended the connectivity and design options for the 8200 and 5400 switch families. Customers with unified communications and video surveillance can use high-capacity Power over Ethernet (PoE+) to reduce costs while lowering power consumption. The new offerings also expand HP ProCurve’s unified networking approach by using common architecture, security and management tools across the portfolio.

These new switches offer customers more affordable networking options over competing solutions and are backed by the ProCurve Lifetime Warranty.(1)

Improved virtualization management with simplified connectivity

To reduce network complexity, lower connectivity costs and offer flexibility for deploying a data center technology infrastructure, HP enhanced its innovative Virtual Connect portfolio. HP Virtual Connect with HP BladeSystems reduces acquisition costs up to 66 percent.(2) New customer benefits include:

* Twice the Fibre Channel bandwidth at a lower cost per 8Gb port than competitive offerings with HP Virtual Connect 8Gb 20-Port Fibre Channel Module. The solution is ideal for virtualization and other high-performance applications.
* Increased network flexibility from the new Virtual Connect Firmware Update with Virtual Connect Flex-10. This allows users to dynamically change network connections and adjust bandwidth without rebooting the server. It also provides expanded support for up to 128 virtual local area networks (VLANs) to improve delivery of infrastructure-as-a-service deployments, as well as enhanced network diagnostics to simplify management.

HP channel partners also will benefit from an enhanced portfolio of networking options to offer customers. Additionally, they can leverage the extensive installed base of more than 1.5 million blade units to drive new HP ProCurve sales opportunities.(3)

“Virtual sprawl has been an ongoing challenge for customers, adding unnecessary complexity and management costs that take valuable resources away from business innovation,” said Marius Haas, senior vice president and general manager, HP ProCurve. “By delivering a converged solution that is easier to manage, higher performing and reduces costs, HP is eliminating these challenges, allowing customers to focus their efforts on growing the business, today and in the future.”

Reduced risk with proven methodology and investment advice

HP also announced enhancements to its HP Adaptive Infrastructure Maturity Model (AIMM) for both end-users and channel partners. The maturity model includes new tools that help customers improve return on investment by providing the information needed to make informed technology purchase and operational decisions.

To Purchase Procurve Products visit http://www.CurveSales.com

HP ProCurve Delivers Converged Networking Solutions for Enterprise Customers

PALO ALTO, Calif., June 1, 2009


HP ProCurve today announced new converged wired and wireless networking solutions that allow customers to drastically simplify delivery of multiple IP-based services by combining centralized network operations with a discrete in-wall access device.

The HP ProCurve MSM317 Access Device integrates an 802.11b/g wireless access point and a four-port wired Ethernet switch. It is designed to be installed in a standard wall electrical outlet and centrally managed by any HP ProCurve MultiService Mobility controller.

Two new HP ProCurve MultiService Mobility controllers give enterprise customers centralized control and management of a network of MSM317 devices or any HP ProCurve wireless access points. The controllers deliver consistent services anywhere on the network, allowing customers to implement security, roaming and quality of service policies.

“Property owners and network operators can deliver multiple high-value voice, video and data services to guests and other occupants with these new solutions,” said Roger Sands, director, Worldwide Mobility Solutions, HP ProCurve. “These converged network offerings extend HP ProCurve’s product portfolio into a new category of innovative network edge products that help customers reduce the complexity of installing and managing their wired and wireless network services.”

Ideal for the hospitality industry, the HP ProCurve MSM317 connects multiple IP-based devices such as VoIP telephones, televisions and other hotel room equipment while reducing power sourcing equipment through integrated Power over Ethernet (PoE) support. The integrated access point provides wireless services to hotels, hospitals, dormitories and apartments, extending the range of mobile devices such as laptops and smartphones.

HP ProCurve wireless controllers

This expansion of the HP ProCurve mobility product portfolio introduces two new HP ProCurve MultiService Mobility controllers, giving customers greater flexibility for centrally managing their wired and wireless networks. The new HP ProCurve MSM765 controller physically integrates into HP ProCurve 5400 and 8200 Series switches, while the HP ProCurve MSM760 is a stand-alone appliance. Both controllers scale from small to large network deployments with new software licensing capabilities.

HP ProCurve also introduced an auto-update capability for HP ProCurve Mobility Manager 3.0, which greatly simplifies network configuration by automatically detecting and configuring all wireless access points and controllers on the network.

The HP ProCurve Manager Plus 3.0 management platform – which includes HP ProCurve Mobility Manager 3.0 – enables customers to map, configure and monitor wired and wireless networks. The platform offers a single-pane view of an entire network, allowing customers to securely add, customize and restrict network access.

To Purchase Procurve Products visit http://www.CurveSales.com

HP ProCurve Expands Security Portfolio to Address Firewall and Intrusion Prevention Markets

HP ProCurve today announced the expansion of its security portfolio with firewall and intrusion prevention offerings that lower costs and reduce the complexity of security infrastructure deployments.

As part of the HP ProCurve ProActive Defense security portfolio, HP is introducing the new HP ProCurve Threat Management Services Module, which provides firewall, virtual private network (VPN) and intrusion prevention (IPS) functionality. This multifunction security module eliminates the need for a separate appliance by physically integrating into the HP ProCurve 8212 and 5400 series switches.

HP also unveiled a new version of the HP ProCurve Manager Plus product suite, designed to help businesses secure and simplify network management. HP ProCurve Manager Plus allows businesses of all sizes to prevent security breaches by centrally managing user access for both wired and wireless networks.

“Customers are able to reduce overall security costs while simplifying the complexity of network security with HP ProCurve’s switch and mobility products,” said Mauricio Sanchez, chief security architect, HP ProCurve. “These new security solutions help customers secure their businesses by effectively managing and securing their networks.”

The HP ProCurve ProActive Defense network security strategy provides customers security solutions that can adapt to users, applications and changing business environments. ProActive Defense secures customer networks by combining pre-emptive techniques including comprehensive access control with innovative defensive methods such as automated threat detection.

HP ProCurve Threat Management Services Module

The HP ProCurve Threat Management Services Module protects networks, servers and data in transit through firewall, IPS and VPN capabilities. This solution also integrates with HP ProCurve’s existing wireless IPS solution to provide threat management services across wired and wireless networks, supported by the ProCurve Lifetime Warranty.(1)

The HP ProCurve Threat Management Services Module also provides a cost-effective option for customers looking to compartmentalize their campus environments into multiple zones for compliance purposes.

Network visibility and security management suite

The HP ProCurve Manager Plus 3.0 management platform enables customers to map, configure and monitor wired and wireless networks. The platform offers a single pane view of network-wide management control, allowing customers to securely add, customize and restrict network management access to users.

Additional management features include updates of the HP ProCurve Manager Plus 3.0 security suite:

* ProCurve Mobility Manager 3.0 – Provides visualization capabilities to plan, deploy, manage and report a wireless local area network (WLAN). It also predicts the area of radio frequency coverage and offers the ability to monitor WLAN infrastructure and rogue access points across the network.
* Network Immunity Manager 2.0 – Provides a rich toolset to manage internal network threat detection and response in a wired and wireless network environment. It also provides central management of the HP ProCurve Threat Management Services Module.
* Identity Driven Manager 3.0 – Gives network administrators the ability to dynamically provision network access to meet business policies as users and devices connect to the network.

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HP ProCurve positioned in the Visionaries Quadrant

HP ProCurve is positioned in the “Visionary” quadrant in industry analyst firm Gartner Inc.’s Magic Quadrant for Wireless LAN Infrastructure 2008. Vendors in the “Visionaries” quadrant demonstrates an ability to increase features in its offering to provide a unique and differentiated approach to the market. A visionary will have innovated in one or more of the key areas of WLAN technologies (convergence, security, management or operational efficiency).

To Purchase Procurve Products visit http://www.CurveSales.com

HP ProCurve Market Growth Nearly Quadruples Industry Rate

PALO ALTO, Calif., Dec. 11, 2008 – HP today announced that HP ProCurve experienced year-over-year worldwide revenue and port growth for the third calendar quarter of 2008 that greatly outpaced the growth rate of the networking industry, according to data from a quarterly report by market research firm Dell’Oro Group.(1)

HP ProCurve’s portfolio of wired and wireless infrastructure solutions provides customers with optimal levels of network performance, from large enterprises to small and medium-sized businesses.

According to the analyst firm’s data, HP ProCurve growth in worldwide port shipments exceeded that of any other industry vendor in a market that saw a majority of vendor port shipments decline. Specifically, HP ProCurve grew worldwide switched Layer 2 through Layer 7 port shipments by 25.8 percent in the third calendar quarter of 2008 compared to the same period in 2007. The industry growth rate for this period was 6.6 percent.

In addition, Dell’Oro Group data revealed HP ProCurve’s worldwide revenue also grew at a higher rate than the rest of the market, accelerating 14.1 percent, compared to the industry average of 4.5 percent. Also, HP ProCurve’s Power over Ethernet (PoE) worldwide shipments grew 51.7 percent year-over-year compared to market growth of 13.7 percent.
“In our current economic climate, customers are looking even more closely at their IT investments and are choosing HP ProCurve,” said Marius Haas, senior vice president and general manager, HP ProCurve. “This latest Dell’Oro report reflects the growing number of customers – from small offices to global enterprises – who are choosing HP ProCurve to adapt their networks to meet changing business requirements.”

To Purchase Procurve Products visit http://www.CurveSales.com