After strengthening its position in the personal computing,
server and cloud computing segments, HP Enterprise Management
& Analytics, a division of
), has recently rolled out a service specially targeted at its
enterprise clients. The service is intended to manage and
evaluate the Big Data generated by them.
This is a new line of business for HP, which will help it
generate additional revenue, as it has the potential to improve
efficiency, reduce risk and lower the cost structure of
After a detailed research of the information and data analysis
market, HP found that more than one out of two business
executives of different companies were of the opinion that their
organizations did not have the tools to glean business insights
from the huge amounts of data they were generating. This prompted
HP to develop technology that could help companies discover this
The study also found that companies have lacked the expertise
and strategy to properly manage their database.
HP has understood the fact that with better management and
analysis of data, companies can efficiently manage their
customers. After identifying this spot, HP seeks to address
the situation with new solutions.
As per a recent research report published by the technology
research firm Gartner, the global analytics and business
intelligence market is expected to grow 7.0% in 2013. Though this
growth rate seems decent, it is low compared with the 16.0%
growth estimated for 2011. While analyzing the growth rate, we
have to keep in mind the recent recessionary phase, which the
world economy is going through.
Gartner also expects the growth rate to remain in the
single-digit range for the next few years. At the end of 2013,
the analytics and business intelligence market will remain at $14
billion and grow to $17 billion by 2016.
Analytics is a market where HP has shifted its focus recently.
However, other consulting and IT companies such as
International Business Machines
) have been in this market for quite some time.
The PC market is not doing so well at the moment, with
declining revenues and increasing competition from small and
medium companies and cannibalization by tablets pose some
However, HP's growing focus on new business segments, such as
electronic medical records, cloud computing and now analytics
will help the company to grow in the coming quarters.
Currently, H-P has a Zacks Rank #1 (Strong Buy).
ACCENTURE PLC (ACN): Free Stock Analysis
COGNIZANT TECH (CTSH): Free Stock Analysis
DELL INC (DELL): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis
To read this article on Zacks.com click here.