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Hewlett-Packard Co. (HPQ - Analyst Report) recently unveiled a host of new storage solutions. The new HP Converged Systems and HP Converged Storage will be able to increase data center capacity to meet the growing demand for cloud services.

The latest products such as HP ConvergedSystem for Virtualization, HP ConvergedSystem 300 for Vertica and HP ConvergedSystem 100 for hosted desktops will add to H-P’s converged infrastructure portfolio. Moreover, H-P's Converged suites bring together servers, storage and networking products to manage data centers from a common platform.

Additionally, the converged platform has been designed to make data center handling simpler, more flexible, efficient and cost effective. Going forward, the new product launches will push H-P further toward the high-margin enterprise storage space, thereby cutting its dependence on the PC market. Moreover the offering will provide enhanced performance and secure connectivity.

In today's technology-driven world, data centers are one of the most desirable growth areas. According to a recent survey by Gartner, data capacity in the next five years will grow more than 800% and we believe that H-P is doing very well in this category. Moreover, with advanced offerings, H-P’s Converged portfolio will be able to attract new clients.

We also believe that the new offering will help H-P to simplify the complexity associated with the management of IT assets and consumer electronics, in accordance with environmental and data security regulations.

Apart from this, H-P also recently announced the availability of a free version of HP StoreVirtual Virtual Storage Appliance (VSA) with the purchase of HP ProLiant Generation8 (Gen8) servers. The package is targeted at small and medium business (SMB) owners as it helps to reduce complexities, protect privacy, reduces data loss and accelerates data transfer.

H-P remains focused on shifting its focus from its PC-centric business to the high-margin server, storage and cloud computing space. The back-to-back launches of a new BPO (business process outsourcing) solution, a host of desktop printers, two media players and the Moonshot server in the past few months indicate that H-P’s plans are well on track.

However, increasing competition from companies like Accenture plc (ACN - Analyst Report), IBM Corp. (IBM - Analyst Report) and Oracle Corp. (ORCL - Analyst Report) coupled with continuing macroeconomic challenges and tepid IT spending will pose challenges, going forward.

Currently, H-P has a Zacks Rank #3 (Hold).

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