Cheap Dedicated Servers Abound with Healthy Competition
The healthy competition going on between technology giants Cisco Systems Inc and Hewlett-Packard Co. has made it possible for cheap dedicated linux servers to become more accessible to the public.
Hewlett Packard has reportedly announced the existence of its more economical deal in the networking scene in a bid to become the leader in the data center market. This development reportedly surprised the investors of this computer and printer giant.
On Wednesday, HP announced that it will proceed with its purchase of 3Com Corp, a global and pioneering leader for Ethernet networking technology. The price of the purchase has been set at a staggering $2.7 billion.
The purchase was clearly made in a bid for HP to revive its networking business as current Chief Executive Mark Hurd has been exerting effort on this line of business for the past year. This lucrative deal was sealed in a bid to outperform close rival Cisco Systems Inc. The latter has started in the dedicated server business which also completely competes with HP.
3Com moved away from Silicon Valley a few years ago and transferred to Marlborough, Massachusetts. The profits and revenues of this company have been on a decline for the past few years. The market cap of the company is set at$2.23 billion. Analysts believe that HP is making the right move in purchasing 3Com.
Cisco is expected to announce its move following this development.
