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Hewlett-Packard Company (HPQ - Analyst Report) recently announced the expansion of its mobility services to the U.S. public sector through the HP Enterprise Cloud Services (ECS)-Mobility platform. The expanded service includes a cloud-based solution, which will provide users a secure and flexible network.

HP ECS-Mobility is a virtualization platform that provides private cloud-based service to make the cloud-computing environment more secure, simple, flexible and efficient. Moreover, this cost-effective cloud platform runs on Apple (AAPL - Analyst Report) iOS devices, Google’s Android, and Microsoft’s (MSFT - Analyst Report) Windows. This complete range of enterprise mobility management services will ensure quick deployment, which can be scaled to suit the requirements of the various agencies adopting the service.

Moreover, this mobility solution is hosted on HP's Federal Risk and Authorization Management Program (FedRAMP(SM)) to ensure that it complies with the requirements for regulated environment operations as outlined by FISMA, ITAR, and HIPAA.  We believe that using this new offering from HP, organizations will now be better equipped to handle cloud technology.

According to IDC, the cloud market will jump 130%, reaching $43.0 billion in 2016. Per Gartner, around $677.0 billion would be spent on cloud services within the 2013–2016 timeframe. HP, with its solid portfolio, should be able to tap this opportunity.

We also believe that the new offerings from HP will reduce the complexity associated with the management of IT assets and consumer electronics. Hence, we believe that the deployment of these solutions will boost HP’s Software solutions portfolio and act as a tailwind for the company’s near-term financial performance.  .

The company’s traction in the cloud, security and big data segments are positives. Its strategic focus on the software business will help it to achieve long-term profitability. However, continuing macroeconomic challenges, tepid IT spending and competition from International Business Machines and Oracle are near-term headwinds.

Hewlett-Packard has a Zacks Rank #2 (Buy).
 

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