HP (HPQ) and Dell (DELL) have been looking to expand beyond personal computers in a search for bigger profits.

In 3Par (PAR) they are bidding for a company that provides software for organizing data on corporate servers. The company, based in Fremont, Calif., offers its products on a subscription basis over the Web, an approach known as "cloud computing."

HP, based in Palo Alto, Calif., says it will pay $24 a share for the company, a 33% premium over Dell's bid of of $18 a share.

Shares of 3Par rose $6.66, or 37%, to $24.70 in premarket trading.

Dell is based in Round Rock, Texas.

HP is the world's biggest computer maker; Dell is No. 2. And HP has gone further than Dell in stretching beyond the PC market. PC sales made up less than a third of HP's annual revenue of $116 billion in the most recent fiscal year, while they account for more than half of revenue at Dell.

With the acquisition of 3Par, HP would add to a technology services and outsourcing division that makes up about 13% of its revenue.

The software 3Par offers is designed to maximize available space on data storage hardware — a cost-cutting step — by using a technique called "thin provisioning," by which extra capacity cane be added as needed.

By: DocMemory
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