Barron’s Says 3PAR Inc. (PAR) Doing More With Less

The $14 billion a year business of storing and managing electronic data is dominated by the likes of EMC Corporation (NYSE: EMC), IBM (NYSE: IBM) and Hitachi (ADR) (NYSE: HIT).

However a new player has now joined the game and is winning market share from its competitors. 3PAR Inc (NYSE: PAR), the California based company with revenues of just $195 million, appears to be more nimble than its competitors. The company’s data storage systems do more with less, says Barron’s. The company offers a storage system in which data from different sources can be shared in a single storage area allowing simultaneous access.

It has succeeded in growing revenues and maintaining rich margins by introducing cheaper, more advanced technology which its competitors had initially ignored. Analysts believe that it is only a matter of time before 3PAR’s competitors catch up with it. But the company defends itself saying it still has a competitive edge and real good opportunity to grow faster than the market. Kevin Hunt, a technology analyst at Hapoalim Securities is bullish about the company and believes the 3PAR stock has a fair value of $15 which is 35% above the current level.