After a series of new deal wins,
) has yet again successfully managed to grab a couple of new
deals. The Enterprise Service division of HP announced that it
has been awarded two task orders by the U.S. Army Human Resources
According to the agreement, the company will be instrumental
in improving the technology infrastructure and applications
platform used in the recruitment process.
Generally, U.S. Army Information Technology Enterprise
Solutions contracts are sold under 2 Services agreements, which
include 30.0% participation from small-businesses. As per the
terms of the first contract, HP has secured a three-year
order from AHRC to continue managing its technology
infrastructure, which will provide necessary support for the U.S.
Army Cadet Command and Army Recruiting Command.
HP's association with AHRC spans over the last 20 years, which
started with providing data centre services to AHRC including
Workplace Services. Moreover, the company provided field support
for PCs, laptops and printers used by AHRC staff along with
Networking Services and enterprise architecture planning from HP
Transformation Consulting Services.
The company's new business wins and deal renewals are making
things easy. The process is also being aided by HP's current
The money generated through this process will be mainly
reinvested in the business to foster innovation, particularly in
cloud, Big Data analytics, information management, security and
software segments. Although the cloud offers plenty of
opportunities, Hewlett-Packard is facing tough competition in
this segment from
HP's growth in the core computing market has been restricted
by the unfavorable impact of macroeconomic factors, as well as
the sluggish market. This apart, the printer business continues
to look challenging. The company is taking major steps to expand
and initiate growth as well as improve its balance sheet.
Hewlett-Packard is not getting any support from its PC
business. The market for new PCs has not seen any major growth in
the last couple of years. The increasing competition from small
and medium companies is likely to further hurt its growth
However, HP's growing focus on new business segments, such as
electronic medical records, cloud computing, Enterprise solution
and now analytics will help the company grow in the coming
Currently, Hewlett-Packard carries a Zacks Rank #1 (Strong
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