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Hewlett-Packard Company (HPQ - Analyst Report) has secured a deal from AAA Northern California, Nevada & Utah Insurance Exchange (AAA NCNU IE). The insurance outfit selected HP to maintain and upgrade its mainframe setup. This is a part the insurance company’s plans to become a national insurance player.  

As per this agreement, HP will continue to provide necessary support to AAA NCNU IE's staff, which will help them maintain applications and manage the latter’s database, providing support to membership, policies, claims and other business operations. 

This is a unique combination, wherein AAA NCNU IE will leverage HP Data Center Services and other infrastructure services for its improve its daily operations. This will help AAA NCNU IE to provide better insurance products and services to its growing clientele.

Through deal wins and by adopting diversification strategies, HP is taking aggressive measures to enhance its operations and business model. The slump in its core computing market and cannibalization by tablets has driven this computing giant to take these measures.

Apart from insurance companies, the company is winning deals from FMCG companies like Procter& Gamble Co. (PG - Analyst Report). PG has opted for HP 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 HP is doing very well in this category. Moreover, providing solution related to a company’s decision support system and automating the operation management process are other areas being slowly explored by HP.

While the PC market is expected to remain in the doldrums this year and declining revenues as well as competition from Dell Inc. and Lenovo are concerns, back-to-back product launches and growing exposure to the enterprise storage space look encouraging.

Currently, HP has a Zacks Rank #2 (Buy). Investors may also consider technology stocks such as CA Inc. (CA - Analyst Report), which has a Zacks Rank #2 (Buy).

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