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Hewlett-Packard Co. (HPQ - Analyst Report) recently announced to have sealed a deal with automatic test equipment manufacturer Teradyne Inc. (TER - Analyst Report) for an undisclosed sum. Per the deal terms, Teradyne will deploy a host of networking solutions from H-P to enhance its information technology (‘IT’) infrastructure.

Massachusetts-based Teradyne is a leading provider of automated test equipment for semiconductor testing, systems testing and wireless testing. The production process of test equipments is complex and involves software applications of gigantic sizes. Those applications need efficient networking architecture for downloading and smooth running on the systems.

Lately, Teradyne was facing problems with its existing networking system and disruptions in running applications were hampering the production process. H-P, with its rich industry exposure, was found suitable for providing the required networking support.

Teradyne deployed H-P’s FlexNetwork Architecture, which is a key component of H-P Converged Infrastructure, and includes HP 10500 Switch Series, HP 5500 Switch Series and HP 5120 Switch Series to manage the network traffic.

With FlexNetwork, Teradyne has been able to reduce networking downtime by roughly 14 hours and minimized cost of network ownership by 35.0% to better integrate its server and storage systems. Teradyne also opted for HP Intelligent Management Center, HP Integrity BL860c i2 server blades and HP Care Pack Services.

H-P's Converged Infrastructure portfolio brings together servers, storage and networking products to manage data centers from a common platform. The Converged platform has been designed to make data center handling simpler, more flexible, efficient and cost effective.

Earlier, ace retailer Procter & Gamble Co. (PG - Analyst Report) opted for H-P Converged suites to achieve constant and uninterrupted IT services.

In today's technology-driven world, the enterprise storage space is one of the most enviable growth areas and we believe that H-P is doing very well in this category.

Though further indication of PC market slump in 2013, declining revenues and competition from Dell Inc. are concerns, back-to-back product launches and growing exposure into enterprise storage space are encouraging.

Currently, H-P has a Zacks Rank #2 (Buy).

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