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Today, policy and business leaders are reaching a consensus that industry must address rising greenhouse gas (GHG) emissions, particularly in the data center. Leading enterprises are now turning to the practical challenge of determining how, how much, and at what cost to reduce emissions. In a recent white paper from IDC many companies are learning that their data center offers a means to both abate GHG and reduce costs with the right incremental capital investments.

The process of improving information technology and data center efficiency not only reduces GHG emissions but also reduces cost for the enterprise. This means that the savings or business value derived from improvements far outstrips the incremental capital costs of “greening” the datacenter. Green IT means business improvement. Firms that rank highest among the “Global 100 Most Sustainable Corporations in the World,” such as Amazon, Toyota, and Nike, have realized that focusing on limiting energy calories in the datacenter and elsewhere pays profitability dividends on the financial side. IDC research indicates that companies reducing their metric tons of carbon per datacenter workload by a factor of 55% also incurred 35% less cost per user session on a server.

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The Business Value of Green Data Centers

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Here’s a roundup of news announcements from the data center and hosting industry:

• Key milestone to 100 Gigabit Ethernet demonstrated. At the SC09 conference in Oregon Monday Infinera, Internet2, Juniper Networks and Level 3 demonstrated 100 Gbps data transport between Seattle and the SC09 show floor in Portland.  The 100 Gbps of test data was sent via a single slot on the Juniper T1600 Series Core Router, populated with a new 10
  

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HP this week launched several new products for high performance computing at the SC09 conference, including servers, storage, software and network products.A new ProLiant BL2

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There’s lots of reaction around the web to HP’s announcement that it is acquiring network equipment maker 3Com for $2.7 billion in cash. Here’s a roundup of notable commentary and analysis:

• Larry Dignan at ZDNet reflects on the growing rivalry between Cisco and HP to grab mindshare and market share in converged networking for the data center. “At the Gartner CIO powwow last month, HP CEO Mark Hurd argued that the data center winner will be able to offer a complete portfolio of hardware, software and services. ‘You can’t do any part of the stack as a hobby,’ said Hurd.”
• As Cisco and HP compete hard for customers, Tim Fitzgerald predicts that “partners are likely to be caught in the cross-fire. Solution providers say this is personal for both HP CEO Mark Hurd and Cisco CEO John Chambers. And its personal for HP and Cisco’s direct sales reps working with partners on account strategy and planning. That means partners that refuse to choose to line up 100 percent behind one or the other are going to face recrimination and payback in the form of favored or unfavored treatment.”
• In a somewhat unusual move, Cisco issued a statement offering comments on the HP-3Dom deal, stating that “acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT.”
• Sramana Mitra notes the strategic importance of the Asian market as a driver in the deal. “3Com’s China cost-structure has got to be the biggest driver, making it attractive for HP to hit Cisco where it really hurts. HP’s global channel will give 3Com’s products an excellent reach into the heart of enterprise and SME networks, as companies look to reduce total cost of ownership across the board.”
• Some viewed the HP-3Com deal in terms of what it means for other potential acquisitions. Shares of Brocade Communications (BRCD), which was rumored to be in play, fell in after-market trading as traders perceived a sale as less likely now.

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Roundup: Analysis of HP-3Com Deal

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The Battle for the Data Center continues to realign the planets in the enterprise IT universe. HP said today that it will acquire network equipment vendor 3Com Corp. (COMS) for $2.7 billion. The deal works out to $7.90 a share for 3Com, a hefty premium to its closing price of $5.69.

The deal is the latest ripple from the ambitions of networking giant Cisco Systems (CSCO), which has launched a line of blade servers, upping the stakes in the converged networking space. As Cisco pushes into the server space, HP has moved to beef up its ProCurve line of networking gear and both HP and IBM have tightened their relationship with Cisco rival Brocade (BRCD).

“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.”

HP said the acquisition of 3Com will “dramatically expand” HP’s Ethernet switching offerings and significantly strengthen the company’s position in China. The deal also brings 3Com’s TippingPoint network security products into the HP fold. Approximately 30 percent of the Fortune 1000 companies have already deployed TippingPoint intrusion prevention systems, the companies said.

“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.”

UPDATE: While the deal took many pundits by surprise, unusual trading activity in 3Com is highlighted at PEHub, Zero Hedge and Business Insider.

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HP Buys 3Com in $2.7 Billion Networking Play

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