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Hewlett Packard (HPE) Expands Bethesda's Networking System

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Hewlett Packard Enterprise (HPE - Free Report) announced that it has enhanced Bethesda Health Group’s networking infrastructure by implementing HPE Aruba Networking Security Service Edge. The enhancement will help Bethesda offer continuous support across its residential communities throughout the day and via in-home services.

Bethesda started transitioning from Cisco Systems (CSCO - Free Report) networking infrastructure to HPE Aruba Networking EdgeConnect SD-WAN through the hands of InterVision. The healthcare provider migrated to HPE’s networking system to gain from the centrally managed and high-performance WAN that CSCO’s Multiprotocol Label Switching (MPLS) was unable to deliver.

Cisco IOS MPLS is an easy-to-set-up networking solution that integrates with the client’s existing setups without requiring major changes. The solution can easily integrate with a customer's IP, frame relay, ATM, or ethernet. However, Bethesda eventually moved from this traditional system and adopted HPE’s multiple solutions, which include Wi-Fi access points for wireless connectivity, CX series switches for wired networking, Aruba Networking Central and ClearPass. The new networking solution has been added to the preexisting HPE networking infrastructure that Bethesda is already using.

Bethesda will now offer users fast and secure access to applications and enhance IT staff visibility. New features include zero trust network access, secure web gateway and cloud access security broker.

In the past year, a number of organizations, such as Korea Telecom, New Brunswick Community College, Aramtec, Pennsylvania Convention Center, Dedini S/A Indústrias de Base and Kurly, have adopted HPE Aruba Network offerings.

Hewlett Packard’s Intelligent Edge division, which includes HPE Aruba and HPE Aruba Services, is growing rapidly, driven by the strong demand for its software-centric solutions like the Aruba Central cloud management software.

The company is also strengthening its Aruba portfolio through acquisitions. HPE recognizes Intelligent Edge and Aruba Central Hyperconverged Infrastructure as its high-margin offerings and has been strengthening these solutions for a long time. The strengthening of the division has involved multiple strategies, including acquisitions, to boost its portfolio. In 2020, Hewlett Packard acquired Silver Peak to enhance its Aruba Edge Services platform.

Zacks Rank and Stocks to Consider

Currently, Hewlett Packard carries a Zacks Rank #3 (Hold) and CSCO has a Zacks Rank #4 (Sell). Shares of HPE and CSCO have lost 4.8% and 0.7%, respectively, in the past year.

Some better-ranked stocks from the broader technology sector are BlackLine (BL - Free Report) and Dell Technologies (DELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for BlackLine’s first-quarter 2024 earnings has remained unchanged at 47 cents per share for the past 90 days. Shares of BL have lost 16.1% in the past year.

The Zacks Consensus Estimate for DELL’s fourth-quarter 2024 earnings per share has been revised northward by a penny to $1.73 in the past seven days. Shares of DELL have surged 126.6% in the past year.

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