The acquisition, which has been approved by both companies’ boards, should bolster HP’s data center strategy and, thanks to 3Com’s routing business, intensify competition with rival Cisco (CSCO), which has lately been expanding into HP’s businesses.

“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,” Dave Donatelli, executive vice president and general manager, Enterprise Servers and Networking, HP, said in a statement.

“By acquiring 3Com,” Donatelli added, “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.”

Below, the official release:

HP to Acquire 3Com for $2.7 Billion
Will create networking industry powerhouse with a proven, edge-to-data center set of solutions and global reach

PALO ALTO, Calif., and MARLBOROUGH, Mass., Nov. 11, 2009

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.

“After Gateway’s 2004 merger with eMachines, AMD attempted to revive the relationship it had enjoyed with Gateway until 2001, but experienced extremely limited success. While Gateway built one AMD-powered desktop model at the request of Circuit City, AMD remains locked out entirely of Gateway’s direct internet sales, its commercial offerings and its server line. According to Gateway executives, their Company has paid a high price for even its limited AMD dealings. They claim that Intel has beaten them into ‘guacamole’ in retaliation.”

– Excerpt from AMD’s 2005 complaint against Intel

Looks like it’s going to be a very busy fall for Intel legal. This morning, New York Attorney General Andrew Cuomo filed a federal antitrust lawsuit against the company, alleging that it violated state and federal laws with a “systematic campaign” of illegal conduct to maintain its monopoly.

At issue here, once again, is Intel’s alleged practice of using bribery and coercion to maintain its monopoly, something rival AMD complained about in its own antitrust suit against Intel (INTC) in 2005.

AMD (AMD) alleged, for example, that in 2000, Michael Capellas, then chief executive of Compaq Computer, told AMD that because of Compaq’s relationship with AMD, Intel withheld the delivery of some microprocessors he needed for servers. Capellas told AMD he would stop buying from it, saying he “had a gun to his head.”

Further, in 2004, Gateway officials are alleged to have told AMD that Intel “beat them into guacamole” in retaliation for their limited dealings with its rival. These are but two incidents in a list that includes similar alleged acts of coercion by Intel involving 38 other computer makers, distributors and retailers.

Apparently, Cuomo has found evidence of similar behavior. “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”

At Hewlett-Packard.

Quite a coup for HP (HPQ), which clearly hopes Seidl brings a bunch of Sun (JAVA) resellers and customers along with him. And quite a blow for Sun, which is seeing customer loyalty tested to the extreme thanks to the company’s planned takeover by Oracle (ORCL).

“Customers and partners alike, especially those grappling with the uncertainty of Sun’s future, need a technology partner that can eliminate barriers to business growth quickly,” Dave Donatelli, executive vice president of enterprise servers and networking at HP, said in a gloating statement. “We anticipate that Randy’s knowledge of the real business issues faced by today’s CIOs, coupled with his high level of energy, passion for technology and a strong network of channel relationships, will expand HP’s success.”

“We know you’ve been eager for this service so we wanted to offer a quick update on the launch plans for MMS on Friday, Sept. 25,” AT&T explained on its official Facebook page. “Late morning, Pacific Time, on Friday, the new carrier settings update enabling MMS should be live and ready to download through iTunes.”

Assuming everything goes as planned. And sources inside AT&T (T) tell DSL Reports that the carrier is “very nervous” that it might not. “AT&T and its MMS partners are already seeing ‘record traffic during peak hours of the night’ with just the users selected for testing,” the publication says. “That early testing has been a little rocky, with AT&T seeing a fairly significant test outage yesterday that has them rushing to beef up their MMSC messaging servers. Estimates among those working on the project are that traffic on AT&T’s wireless network will be about 40 percent higher all day on Friday as iPhone users fire pictures and video at one another.”

Zing.

Ellison went on to note that Oracle has big plans for Sun’s SPARC chips as well. “Once we own Sun we’re going to increase the investment in SPARC,” he said. “We think designing our own chips is very, very important. Even Apple is designing its own chips these days. Right now, SPARC chips do some things better than Intel chips and vice-versa. For example, SPARC is much more energy efficient than Intel while delivering the same performance on a per socket basis. This is not just a green issue, it’s an economic issue. Today, database centers are paying as much for electricity to run their computers as they pay to buy their computers. SPARC machines are much less expensive to run than Intel machines….our primary reason for designing our own chips is to build computers with the very best performance, reliability and security available in the market. Some system features work much better if they are implemented in silicon rather than software. Once we own Sun, we’ll be able to plan and synchronize new features from silicon to software, just like IBM and the other big system suppliers. We want to work with Fujitsu to design advanced features into the SPARC microprocessor aimed at improving Oracle database performance. In my opinion, this will enable SPARC Solaris open-system mainframes and servers to challenge IBM’s dominance in the data center. Sun was very successful for a very long time selling computer systems based on the SPARC chip and the Solaris operating system. Now, with the added power of integrated Oracle software, we think they can be again.”

Oracle’s (ORCL) intentions for Sun’s (JAVA) hardware business come as great news for engineers worried they might lose their jobs as a result of Oracle’s surprise acquisition of the company. Bad news for rivals like Dell (DELL), Hewlett Packard (HPQ), and IBM (IBM), though. Having Oracle out there in the market peddling an integrated hardware and software solution is going to make their lives more difficult.

Velcroed together, stacked in racks, and lined up in back-to-back rows, the servers require a half-watt in cooling for every watt they use in processing, and Google leads the field in squeezing more servers into less space. Based on projected industry standard of 500 watts per square foot in 2011, the Dalles plant can be expected to demand about 103 megawatts of electricity–enough to power 82,000 homes, or a city the size of Tacoma, Washington.”

– Keyword: Evil, Harper’s Magazine, March 2008

You can make money without doing evil. You can also make it without using so much fossil fuel. That’s the word from Google, which today unveiled a $4.4 trillion plan it says will reduce the nation’s dependence on coal and oil.

Google’s “Clean Energy 2030” plan as its described by Jeffery Greenblatt, Google.org’s climate and energy-technology manager, proposes to wean the U.S. off of coal and oil for electricity generation by 2030 by relying on power from wind, nuclear and geothermal sources instead. It also calls for raising the standard car fuel efficiency from 31 mpg to 45 mpg and increasing usage of plug-in hybrids and pure electric cars.

It’s an ambitious plan, to say the least. Expensive too–a jaw-dropping $4.4 trillion dollars. But Google (GOOG) believes it could generate net savings of $1 trillion over its 22-year span. It might even save our children’s grandchildren from a world in which they rove post-apocalyptic desert wastelands scavenging for food and gasoline, terrorized by marauding biker gangs. And who could place a monetary value on that, eh?

“We see a huge opportunity for the nation to confront our energy challenges,” Greenblatt explained. “In the process we will stimulate investment, create jobs, empower consumers and, by the way, help address climate change.”

And lest we think Google is hiding its own self interest (Read: Lower data center electric bills) behind a $4.4 trillion dollar mask of altruism, consider this remark from Google CEO Eric Schmidt, who spoke at an event in San Francisco Wednesday evening: “We’re going to likely consume more energy,” he said. “We’d like the prices to go down … We save a lot of money when prices go down. It’s good for shareholders, good for earnings.”

And in the end, what’s wrong with approaching clean energy from a capitalist position? We certainly approach dirty energy in that way.