Back to top

Analyst Blog

Hewlett-Packard Co. (HPQ - Analyst Report) is now out with a new HP ConvergedSystem as a service for the SAP HANA Cloud Platform, a SAP (SAP - Analyst Report) solution. This new solution is expected to aid business decision-making processes with tools that provide market information in real time.

The SAP HANA real-time platform is a part of the SAP HANA database that helps in data processing and provides a real-time outlook and analysis from large volumes of data (whether market-related, social networking sentiments or something else). The adoption of this solution will enable Hewlett-Packard to offer a more flexible, efficient and improved IT solution to drive performance.

The HP ConvergedSystem based on SAP HANA will enable enterprises to get better acquainted with business goals and to upgrade their systems to deliver quality services. Additionally, with in-memory computing (IMC) technologies running as a service on the SAP HANA cloud platform, companies will be able to improve performance and minimize storage latency to generate a faster response to real-time applications.

Moreover, this solution will help big data analytics. The term refers to management of vast quantities of unstructured data and providing solutions for proper storage, safety, data mining and easy access to this information from a cloud based structure.  Therefore, greater adoption of the service will ultimately help Hewlett-Packard to grow its business and increase revenues in the process.  

The ConvergedSystem portfolio includes HP Serviceguard and Project Kraken, which will create a more independent and simplified IT-enabled environment with improved network and storage devices. Also, the solution will cater to the growing demands of businesses, which in turn will help Hewlett-Packard to gain competitive advantage.

The new HP ConvergedSystem for SAP platform and HP Serviceguard have been priced at $87,787 and $38,980, respectively and will be launched this spring. Project Kraken will be available globally in the latter half of 2014.

We believe that the new offerings from Hewlett-Packard will reduce the complexity associated with the management of IT assets and data management. Hence, we believe that the deployment of these solutions will boost Hewlett-Packard’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 (IBM - Analyst Report) and Oracle (ORCL - Analyst Report) are near-term headwinds.

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

Please login to Zacks.com or register to post a comment.