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HPE Solidifies IoT Arm, Aruba Unit Unveils Two Offerings

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Hewlett Packard Enterprise (HPE - Free Report) owned Aruba recently announced the launch of a couple of products that will simplify the Internet of Things (IoT) adoption for enterprise customers. The products aim to provide enterprises with greater visibility of all the connected devices running on their network.

Aruba’s ClearPass Device Insight employs machine learning (ML) and crowdsourcing to automate the discovery and fingerprinting of all the connected devices on any wired or Wi-Fi network.

Additionally, the company introduced the Aruba 530 and 550 Series access points, which are an extension of 802.11ax (Wi-Fi 6) IoT-ready access points.

ClearPass Device Insight is a subscription-based service that starts at $1,260 per-year for 100 devices, and the Aruba 530 and 550 Series access points start at $1,495 and $1,895, respectively.

HPE Rides on Intelligent Edge

Hewlett Packard Enterprise is benefiting from its Intelligent Edge segment, driven by solid growth in Aruba Services and Aruba Product revenues. Consistent installed base growth is boosting Aruba Services while strong growth across both the wired and wireless LAN is enhancing Aruba Product revenues.

Higher Aruba Product revenues are primarily attributable to revenue growth in Aruba branded campus switching products as well as revenue growth in the edge compute products.

Notably, a significant investment in Intelligent Edge is helping the company maintain its leadership position in the high growth-opportunity market. Also, it is gaining traction from its focus on the high-margin businesses, such as IoT, server, storage and Big Data.

IoT Signals Huge Scope

HPE views IoT as the next major market. IoT along with mobility is touted to be the primary business driver for Intelligent Edge.

Per IDC, the worldwide spending on IoT is forecast to reach $745 billion in 2019, reflecting an increase of 15.4% over the 2018-level. Further, the research firm expects the worldwide IoT spending to maintain a double-digit annual growth rate throughout the 2017-2022 prediction period and surpass $1 trillion in 2022.

We believe, HPE’s presence in the IoT market coupled with its ongoing initiatives will help it better tap the growth opportunity.

Zacks Rank and Other Stocks to Consider

Currently, HPE has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. (FTNT - Free Report) , eGain Corporation (EGAN - Free Report) and Alteryx, Inc. (AYX - Free Report) , all 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 rate for Fortinet, eGain and Alteryx is projected at 16.8%, 30% and 15.4%, respectively.

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