) has yet again managed to clinch a new deal. The Enterprise
Service division of Hewlett-Packard announced that it has been
awarded a task order by the Defense Manpower Data Center (DMDC)
of the U.S. Department of Defense.
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The DMDC contract spans over five years and is valued at $548.0
million. Per the contract, Hewlett-Packard's Enterprise services
will manage and enhance DMDC's mission-critical hardware and
software services globally.
The company will also provide its commercial off-the-shelf (COTS)
hardware services to support the complex IT environments.
Moreover, Hewlett-Packard's Enterprise services will provide
software services such as - Defense Biometric Identification
Systems (DBIDS), Real-Time Automated Personnel Identification
System (RAPIDS), and Noncombatant Tracking/Emergency Tracking
Accountability System (NT/ETAS) to boost DMDC's Personnel
Security and Assurance systems
These hardware and software systems provide personnel security
management that reduces business risk. This will help DMDC to
reduce costs and manage and procure data in a fast and effective
Hewlett-Packard's IT services are being deployed by several
public sector departments. Market research firm
) expects spending on technology to reach $3.8 trillion in 2014,
up 3.1% from the year-ago quarter. We believe this will
significantly add to Hewlett-Packard's top line.
Additionally, the company's traction in the cloud, security and
big data segments are positives, going forward. The company's
strategic focus on the software business will help it to achieve
We believe that Hewlett-Packard's launch of new phablets in India
will boost its mobile solutions portfolio and act as a tailwind
for the company's near-term financial performance.
However, continuing macroeconomic challenges and competition from
International Business Machines
) are the headwinds, going forward.
Currently, Hewlett-Packard has a Zacks Rank #2 (Buy).