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HPE India's Intel Powered CEC to Demonstrate IoT Solutions

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Hewlett Packard Enterprise (HPE - Free Report) India recently launched a Customer Experience Center (CEC) in Gurugram powered by Intel (INTC - Free Report) . The center will showcase smart city solutions based on Internet of Things (IoT) related technologies.

HPE’s partners and customers will get a firsthand experience of the technologies that aid the development of smart-city related projects throughout India.

The demonstrations will include the likes of “eHealth Center, Public WiFi, City Surveillance, Integrated Command and Control Center, and Solid Waste Management”, per the press release.

The government of India is in the process of establishing around 100 smart cities across the country. Per Som Satsangi, MD - India, HPE, this launch is anticipated to accelerate the government’s “smart city strategy”, which will prove beneficial for providers of smart solutions like HPE.

This will, in turn, boost investors’ confidence and help the company to rebound. It has underperformed the industry over the past year. Notably, HPE stock has lost 30.8% in a year, underperforming the 7.7% decline of the industry it belongs to.

 


Other IoT Initiatives

Hewlett Packard Enterprise views Industrial Internet of Things (IoT) as the next major market. In June 2016, the company entered into a partnership with GE Digital, a unit of General Electric Company (GE - Free Report) to develop products for Industrial IoT.

The integration of Hewlett Packard Enterprise’s IoT technologies and GE's industrial expertise and its Predix platform has been beneficial for the industry as well as for Hewlett Packard’s total addressable market (TAM).

Per MarketsandMarkets, the industrial IoT market is anticipated to reach $195.47 billion by 2022 from $113.71 billion in 2015 at a CAGR of 7.89%. We believe HPE’s presence in the IoT market coupled with its ongoing initiatives like the one discussed above will help it better tap the growth opportunity.

However, industrial IoT is highly competitive with the presence of players like GE, Intel, Cisco Systems, International Business Machines and others. This remains a concern for the company.

Zacks Rank and Stock to Consider

Hewlett Packard Enterprise has a Zacks Rank #4 (Sell).

A top-ranked stock in the same sector is Broadcom (AVGO - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Broadcom is pegged at 13.8%.

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