3Par Bidding Underscores Need to Integrate Cloud Technologies

The battle to acquire 3Par Inc. (PAR), a maker of storage products used in cloud computing, points to the growing need for tighter integration of the various technologies involved in operating a cloud, VMware Inc.'s (VMW) chief executive said Wednesday.

"Vendors realize that increasingly, you can't be in just one category," Paul Maritz told Dow Jones Newswires in an interview. Rather, technology vendors must work to more closely combine all the various components of cloud computing, including virtualization software, storage products and servers.

Maritz made the comments as the deadline approaches for Dell Inc. (DELL) to make a counter offer for 3Par, based in Fremont, Calif. For weeks, the computer maker has been in a fierce bidding war with Hewlett-Packard Co. (HPQ) over the hardware-and-software storage company.

VMware is a leader in virtualization, which allows one computer to do the work of many. Virtualization is closely related with cloud-computing, which allows users to access applications and data over the Internet.

Companies can reduce their hardware spending and IT costs through virtualization because one virtualized server can do the job of several non-virtualized computers.

VMware is creating and acquiring technology for a more integrated approach to cloud computing, Maritz said. For example, VMware currently works directly with storage vendors to optimize their products for the cloud, he said.

Maritz said his company would continue to buy other companies if they have technology VMware doesn't have. On Tuesday, the company said it will acquire Integrien Corp. The privately held company, based in Irvine, Calif., makes IT-management products that promise to simplify the complexity of managing virtualized applications and infrastructures.

On Wednesday, VMware shares closed up 4% at $81.58.

-By Jeanette Borzo, Dow Jones Newswires 415 765 8230; [e-mail]