) or H-P and NEC Corporation recently joined forces to deploy
software-defined networking (SDN) aided infrastructure to deliver
enhanced performance for networking customers.
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Software-defined networking is an approach to networking in which
control moves from hardware to a software application called a
controller. A network administrator uses these controllers to
direct and regulate network traffic from a centralized hub.
Another important factor for choosing SDN technology is that it
is applicable for both private and public cloud infrastructures.
This open standards-based SDN is expected to offer a more
flexible, efficient and improved networking solution. The
companies are expected to benefit from this new technology with a
flexible yet affordable solution that is likely to meet growing
NEC Corporation is one of the leaders in the integration of IT
and network technologies that meet the complex needs of its
customers. With this partnership, Hewlett-Packard will enrich its
virtualization, automation and cloud-based portfolios.
The NEC Virtual Tenant Network (VTN) application will be of
immense importance since the joint effort will ward off
difficulties while setting up a matured virtualized cloud-based
infrastructure. This is turn will help H-P to expand its existing
networking-based infrastructure with the benefits of the NEC VTN
As per the survey conducted by open-source systems management
provider Zenoss, SDN will gain momentum in 2014. Moreover,
virtualization and cloud computing technologies will remain
significant growth areas in enterprise IT environments. Based on
this, we believe more clients will be inclined to deploy flexible
networking infrastructure, thereby paving the way for strong
Moreover, H-P's growing focus on new business segments, such as
electronic medical records, cloud computing and the
recently-added analytics segment will help it grow in the ensuing
Nonetheless, competition from
Computer Sciences Corp.
) in the Medicaid service space, weak PC market and a sluggish
macroeconomic environment remain headwinds. Also, competition
from other technology providers such as
International Business Machines
) makes it even more difficult to gain market share in the cloud
and security space.
Currently, H-P has a Zacks Rank #2 (Buy).