August 16, 2010 by staff
“With Dell combining a powerful platform, virtualized storage with a unique distribution network,” said 3PAR CEO David Scott said in a statement.
Dell, which is the third largest computer company by sales, is likely a welcome arrival to Fremont, California-based 3PAR. The company seems to have lost money every year as far as I can find financial documents.
3PAR makes storage systems for medium to large size. Your purchase from Dell means continued consolidation of the technology giants looking to offer one-stop shop “private cloud” offerings. (Companies use private clouds when they want their own virtualized IT infrastructure instead of using the “Public Cloud” options offered by companies like Amazon and Microsoft.)
The products of the company’s flagship storage are called “bundles of modular storage systems,” that may be suitable for virtualization, and that can be swapped and reconfigured on the fly (the “group” and “modular” part its name) and adapted to be shared across users (a feature called “multi-tenenacy). 3PAR main competition has been EMC and IBM, that dwarf 3PAR of 1.1 billion and market capitalization and a 38.7 billion and 160 billion and market capitalization, respectively.
So far the management of 3PAR seems happy to sacrifice profits on the altar of growth. In the last three years the company has lost about 15 million and about half a billion in revenue.
It will be interesting to see if that trend continues under the leadership of Dell. Dell should be able to bring some economies of scale in terms of sales operations and research and development. In 2010 expenditure on R & D on 3PAR and were 47.6 million, 24% of total revenues.
Above, a chart showing revenue growth compared to a net loss. While the last 3PAR results show quarterly growth year over year revenue of 22%, it is worth noting that these results are only slightly above the growth of revenues 21.8% of the industry as a whole. Meanwhile, the cost of revenue and operating costs exceed revenue and continue to keep the company in the red.
Please feel free to send if you have any questions regarding this post , you can contact on
Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.