Hewlett Packard Company (HPQ - Analyst Report) has grabbed yet another deal. This time it’s from Niagara Health System (“NHS”). This large amalgamated hospital based in Ontario has selected HP Networking solutions to support its service delivery system. HP will help them to optimize network performance, while simplifying their IT infrastructure.
NHS aims to ensure the availability of critical medical applications in order to meet the healthcare demands of the region and also secure network access across its sites. For this they require a reliable and flexible infrastructure that can be centrally managed.
The efficient functioning of these hospitals required high-speed data transmission across their hospital system which needs to be backed by a good IT infrastructure and a robust network. This is where NHS found the HP 12500 and HP 8200 zl Switch Series to be the most applicable.
HP has been winning deals consistently over a period of time. Previously, HP announced that Bond International Software Group entered into a contract to use a technology from Autonomy, which was acquired by HP in Aug 2011. Per the contract, H-P will provide its Autonomy Intelligent Data Operating Layer (IDOL) server to enhance its Bond Adapt platform.
Hewlett-Packard is extending its enterprise systems management leadership position into the application, service management and business process management markets. It also believes that the digital content being developed will create a $1.2 trillion addressable market opportunity.
HPQ is gradually increasing its customer base across verticals and geographies. Some of its recent wins have come from emerging markets like Brazil, Russia, India and China (the BRIC countries). This apart, the company has also focussed on growth areas such as Digital Printing, which is mainly used by companies for enhancing their image outputs, Mobile Computing and Next-Generation Data Center handling. These are some of the key growth areas the company is focusing on to further improve its business volume in 2013.
Although the company’s profitability is affected by the PC market slump, better cost control efforts and new product launches in the non-PC area bode well for the company.
Currently, HPQ has a Zacks Rank #2 (Buy). Investors may also consider technology stocks such as Symantec Corp. (SYMC), SanDisk Corp. (SNDK - Analyst Report) and Pegasystems Inc. (PEGA - Snapshot Report), which have a Zacks Rank #1 (Strong Buy) and Western Digital Company (WDC - Analyst Report) which has a Zacks Rank #2 (Buy).