In a direct challenge to networking giant Cisco Systems Inc., HP announced this week it will acquire network equipment provider 3Com in a deal worth $2.7 billion.

HP said the acquisition will boost its strategy to offer more comprehensive, one-stop-shopping data products to business, building on "the convergence of servers, storage, networking, management, facilities and services."

"The resulting business outcome will help customers simplify the network," HP stated in a press release.

The deal sets to stage for a "clash of the titans" scenario among companies that until now had taken a more cooperative stance.

HP's recent acquisition of Electronic Data Systems Corp. took aim at IBM in the service business space.

Cisco's recently announced partnership with storage equipment and software company EMC was a push against HP, IBM and Dell in the computer server business.

HP did not address how the workforces of both companies will be affected by the acquisition of 3Com, which has a large business in China.