Computer giants, HP and Dell have entered a bidding war for cloud-based virtualized storage company, 3PAR.

The board of directors of 3PAR now debate over which way the company should swing. The acquisition will benefit both the companies as they will be able to strengthen their virtual storage capacity.

Dell has placed the bid at $18 per share while HP’s offer is much higher at $24 per share. This means HP’s offer will bring half a billion dollars higher than Dell however the board has to consider which firm will be a better match for
3PAR.

Dell and HP are now aiming to build upon virtualized storage in order to help their customers consolidate storage space and also develop more storage. HP invested heavily to expand its portfolio of products and services. It acquired EDS, 3Com, Palm, and--most recently—Fortify and now aims to add 3PAR to the list.

A senior HP official said in a press release that the company is an ideal march for 3PAR with its market reach and commitment to innovation. He also pointed out that the HP’s bid offers higher premium to the shareholders of
3PAR.

Beyond financial details, the board of 3PAR will have to evaluate both the offers and decide which will offer a better future opportunity for the company.