Hewlett Packard (HP) has shown a pretty aggressive competition with Cisco systems, and the competition has become even much tighter since the company purchased 3Com for an acquisition. By preserving 3Com, HP turns out to be a potential threat for Cisco in the world of data center networking space.
It seems that purchasing 3Com is one of strategies for HP to get even closer in the tight competition with Cisco. Actually, Cisco and HP is not the only vendors that join the hot competition, other vendors like Dell, IBM, and Oracle also put their hands into the battle. Thus, HP Networking tries to provide a complete data center package and become stronger in servers.
HP’s decision to take the acquisition of 3Com over is perhaps dealing with the introduction of Unified Computing System (UCS) by Cisco. Cisco had made sure that the system integrated Cisco-branded servers to Cisco networking. By including the 3Com enterprise-level networking capabilities to strengthen HP’s servers, storage and management software, the company provides users with a more complete data center package called ProCurve networking portfolio.
In IT infrastructure world, HP Networking has been actually established strong root. In addition with its announcement for purchasing 3Com, many experts argued that the company has bigger opportunity to sit on second place in networking market. On the other hand, as the number one vendor that holds biggest share on market, Cisco has foreseen that the competition is potentially growing and many other vendors will make the competition even much tighter.
As evidence that HP is struggling to reach the equal level to Cisco in this networking space, the company had published an announcement in September related to the removal of all Cisco core routers and switches from HP’s six data centers. Those removed parts were replaced with ProCurve products as well as technologies generated from 3Com deal.
Another program HP seriously used to expand its power is the ‘Catalyst for Change’ program that benefits Cisco’s customers the discounts on HP gear if they take the option to trade their Cisco products. Moreover, other tantalizing offers the company delivers in order to attract Cisco’s customers attention include the Cisco integration, migration, and planning services.
Many customers are believed looking for best deals and better cost advantages. HP claims that its networking products are available on 66% better cost of ownership than Cisco gear. Moreover, the trade of Cisco products for HP offers the customer significant price cut. This can be a very mouthwatering offer that may put Cisco at risk.