Hewlett-Packard Company (HPQ - Free Report) inked a strategic agreement with Persistent Systems. The deal fits Persistent Systems' intention to expand its IP portfolio and will also further enhance its expertise in PC Lifecycle Management (PCLCM), Virtual Desktop Infrastructure (VDI) and Mobile Device Management (MDM).
HP Client Automation (HPCA) software is a new approach adopted by different organizations across the globe. This lifecycle management solution helps large enterprises in automating routine tasks related to client management tasks such as operating system deployments and upgrades.
Persistent Systems will work on the product roadmap to develop a combined solution that will also take care of certain HPCA characteristics, such as Mac support and Mobile Device Management (MDM) functionality. This solution will then be marketed by H-P under the Persistent Systems brand name.
Hewlett-Packard is going through a strategic and operational transformation process. Thus, in order to strengthen its business model, the company has been implementing restructuring plans and making new technological enhancements over the last four quarters.
It is yet to be seen whether these initiatives can offset the impact of declining sales in its core computing market. However, the actions may be expected to have a positive impact on margin and EPS performance throughout the year.
In order to enhance its performance, the company is coming up with new business plans and initiatives. The new tablet (Slate 7), which is also a part of the process, will be supported by Google Inc.’s Android operating system. A higher-end version based on Microsoft Corp.’s (MSFT - Free Report) Windows 8 operating system is already available. This tablet may strengthen the company’s foothold in the market.
Hewlett-Packard’s shares carry a Zacks Rank #3 (Hold).
We could recommend another company, Symantec Corp. (SYMC - Free Report) , which currently has a Zacks Rank #1 (Strong Buy).