) recently announced the expansion of its mobility services to
the U.S. public sector through the HP Enterprise Cloud Services
(ECS)-Mobility platform. The expanded service includes a
cloud-based solution, which will provide users a secure and
HP ECS-Mobility is a virtualization platform that provides
private cloud-based service to make the cloud-computing
environment more secure, simple, flexible and efficient.
Moreover, this cost-effective cloud platform runs on
) iOS devices,
) Android, and
) Windows. This complete range of enterprise mobility management
services will ensure quick deployment, which can be scaled to
suit the requirements of the various agencies adopting the
Moreover, this mobility solution is hosted on HP's Federal Risk
and Authorization Management Program (FedRAMP(SM)) to ensure that
it complies with the requirements for regulated environment
operations as outlined by FISMA, ITAR, and HIPAA. We
believe that using this new offering from HP, organizations will
now be better equipped to handle cloud technology.
According to IDC, the cloud market will jump 130%, reaching $43.0
billion in 2016. Per Gartner, around $677.0 billion would be
spent on cloud services within the 2013-2016 timeframe. HP, with
its solid portfolio, should be able to tap this opportunity.
We also believe that the new offerings from HP will reduce the
complexity associated with the management of IT assets and
consumer electronics. Hence, we believe that the deployment of
these solutions will boost HP's Software solutions portfolio and
act as a tailwind for the company's near-term financial
The company's traction in the cloud, security and big data
segments are positives. Its strategic focus on the software
business will help it to achieve long-term profitability.
However, continuing macroeconomic challenges, tepid IT spending
and competition from International Business Machines and Oracle
are near-term headwinds.
Hewlett-Packard has a Zacks Rank #2 (Buy).
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