H-P, CenterBeam Cut a Deal - Analyst Blog

By Zacks Equity Research,

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Hewlett-Packard Company ( HPQ ) recently announced that cloud services provider CenterBeam has deployed its Converged Infrastructure suite, replacing the exiting storage systems provided by EMC Corp. ( EMC ). Financial terms of the deal were not disclosed.

California-based CenterBeam hosts various cloud solution such as customer relationship management and collaboration, and delivers virtual data center services and data storage management services mostly to the mid-sized firms. CenterBeam selected H-P to set up a high performance cloud infrastructure along its IT eco system, with the aim of ensuring storage throughput while enabling storage of infrequently used data in its data centre.

HP's Converged Infrastructure solutions bring together servers, storage and networking products to manage data centers from a common platform. The Converged platform has been designed to make data center handling simpler, more flexible, efficient and cost effective. The highly-virtualized storage solutions of 3PAR (acquired in August 2010) with advanced data management features (dynamic tiering, thin provisioning, etc.) for cloud-computing environments have further strengthened HP's Converged portfolio.

Per the contract terms, H-P offered its ProLiant BL460c G7 server blades, and 3Par storage solutions. Reportedly, 3Par storage solutions have helped CenterBeam to reduce costs by 50.0%, while lowering supervision time by around 60.0%. Overall, H-P's Converged Infrastructure suite has supported CenterBeam in its data centre optimization through the deployment of a cost effective, fast and secure data management process.

In today's technology-driven world, the enterprise storage space is one of the most enviable growth areas and we believe that H-P is doing very well in this category. H-P is also keen on making its cloud computing services public within two months. H-P's cloud services will be somewhat similar to the cloud platform offered by renowned online retailer Amazon.com Inc. 's ( AMZN ) Web Services.

H-P's cloud infrastructure is popular among its customers. But its software- as-a-service offering may take some time to ramp, as it will be first used by the existing customers.

H-P's venture is encouraging but it will take some time to take off. This apart, lackluster PC demand and Meg Whitman's yet-to-be proven strategies keep us on the sidelines.

Currently, H-P has a Zacks #3, implying a short-term Hold recommendation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: AMZN , EMC , HPQ

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