DAVOS, Switzerland (

TheStreet

) --

Dell

(DELL) - Get Report

CEO Michael Dell believes that rival

Hewlett-Packard

(HPQ) - Get Report

overpaid when it spent

$2.35 billion

to acquire

3Par

last year.

Speaking in an interview with

Bloomberg

at the World Economic Forum, Dell explained why his company exited last summer's

bidding war

with HP over 3Par. ""We showed a good discipline and didn't take an emotional decision," he said. HP paid "way too much" for 3Par, added the CEO, who compared the deal to the

$960 million Dell

paid for storage firm

Compellent

(CML)

in December.

Michael Dell believes that HP paid too much for storage specialist 3Par.

Dell also confirmed that his company has more M&A up its sleeve. "We are looking at more acquisition opportunities in software, data centers, cloud computing, storage and virtualization," he said.

There has already been

speculation

that

NetApp

(NTAP) - Get Report

could make an attractive target for Dell, although, with a market cap of more than $19 billion, the storage maker would not come cheap.

Other storage companies cited as a

good fit

include publicly traded

CommVault

(CVLT) - Get Report

and

Falconstor

(FALC)

, as well as privately-held

DataDirect

,

BlueArc

and

Xiotech

. Data networking company

Brocade

(BRCD)

has also been

cited as a potential target

.

Technologies such as virtualization, data center gear and cloud computing

are all expected to be big winners in 2011

, boosted by healthy enterprise IT spending.

Dell admitted that certain companies' valuations have risen dramatically recently, according to

Bloomberg

. "There's a fairly striking disconnect between the valuation of established tech companies and the newly-emerging ones," he said. "The market will figure it out."

Dell shares rose 17 cents, or 1.24%, to $13.90 on Wednesday as the Nasdaq gained 0.09%.

HP declined to provide comment for this story.

--Written by James Rogers in New York.

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