) or H-P is all set to usher in a new era of server experience with
its 'HP ProLiant Generation 9 (Gen9)' server systems to meet the
growing demand for cloud computing and Big Data. H-P looks quite
confident with Gen9 as it is expected to surpass the benefits of
traditional server systems in every possible way.
This cost-effective bundle helps to reduce complexities associated
with the management of IT assets, lowers data loss and accelerates
data transfer. It will be available across multiple locations from
HP ProLiant Generation 9 has been designed and customized to reduce
workloads at an optimum speed that should result in enhanced
performance and flexibility. The server runs on Intel Corp.'s (
) yet-to-be released Xeon E5-2600v3 processors. The usage of chips
will not only save space and energy but also reduce costs. The new
offering is also helping H-P to gain an edge over its competitors.
H-P dominated the server market in the second quarter of 2014, per
IDC's Worldwide Quarterly Server Tracker, followed by IBM (
), Dell, Cisco (
) and Oracle (
). We believe that these product launches will enable the company
to maintain its leadership position.
As a matter of fact, H-P expanded its market share to 25.4% from
25% in the year-ago period and revenues increased 4% on a
year-over-year basis. Notably, in the second quarter, revenues from
the server market increased 2.5% year over year to $12.6 billion.
H-P's server revenues were positively impacted by higher revenues
from x86-based ProLiant servers, which more than offset the
continued decline in revenues from its Itanium-based Integrity
server. H-P retained its leading position in x86 servers and Blade
servers commanding a 29.6% and 42.2% revenue share in the second
quarter of 2014, respectively.
Reportedly, H-P is taking aggressive steps to increase its share in
the x86 server segment since IBM sold its x86 server business to
Lenovo. The sale of IBM's x86 server business has created an
opportunity for H-P as it is tapping into IBM's customer base. This
should strengthen its footing in the server market and generate
incremental revenues, going forward.
Moreover, H-P's traction in the cloud, security and Big Data
segments is expected to drive growth, going forward. We believe
that the company's strategic focus on the software business will
help it to diversify beyond PCs. Nonetheless, macroeconomic
challenges and tepid IT spending remain near-term concerns.
Currently, H-P has a Zacks Rank #3 (Hold).
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