) has managed to grab yet another big deal. The company recently
announced that it has won a deal from Generalitat de Catalunya
(CTTI) worth $40 million. According to the agreement, this
computing and technology firm will be modernizing CTTI's
applications to support economic growth in that region.
The six-year agreement will require HP to provide services to
enhance the efficiency and productivity of the Government of
Catalonia. As a result, the organization's process of delivering,
managing and evaluating applications is likely to improve.
This will, in turn, increase efficiencies at CTTI .
Hewlett-Packard intends to diversify its service offerings to
tap new markets. The company's new business wins, deal renewals
and current restructuring initiatives support the revival of its
The company is strengthening its business by increasing
product acceptance as well as improving service growth. We
believe that these measures will likely drive growth, improve its
margin and offset the challenges in the PC business. The new
product mix is a strong step taken to improve the profitability
of the company.
The money generated through this process will be mainly
reinvested in the business to foster innovation, particularly in
the cloud. Moreover, the company is also exploring other segments
like data analysis, information management, security and
software. Although the cloud offers plenty of opportunities,
Hewlett-Packard is seeing tough competition from
Unfavorable macroeconomic factors and cannibalization by
tablets have resulted in the deterioration of the core computing
business of the company, so new business initiatives are being
increasingly adopted to fuel growth. Moreover, the cloud
computing and mobile computing business is slowly picking up.
Currently, Hewlett-Packard carries a Zacks Rank #1 (Strong
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