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HP Acquires StorageApps: Page 3 of 4

Via the acquisition, StorageApps gets to leap another step ahead of these competitors, as it now has access to HP's gigantic global distribution channels.

HP’s plan is to bring StorageApps under the umbrella of its Federated Storage Area Management (FSAM) strategy. FSAM is the company’s marketing term for its network management software, OpenView. Ultimately it wants this software to provide storage and network management in one package. Walker reckons this integration will be complete by the end of the year -- which some observers think is a tad optimistic.

”Clearly HP’s biggest challenge is piecing all this together,” says Steve Duplessie, analyst with the research firm, Enterprise Storage Group Inc.

The deal also poses a little hiccup for Dell Computer Corp. (Nasdaq: DELL). Dell has invested in StorageApps and OEMs its technology. As an investor, Dell will have made a tidy profit from the acquisition, but it's likely the company will look for a different vendor with which to pursue its virtualization goals, rather than HP, a major competitor. Dell was unavailable for comment at press time.

— Jo Maitland, Senior Editor, Byte and Switch