) or H-P recently unveiled a host of new cloud solutions.
Its new hybrid cloud solutions are capable of managing and
connecting public and private clouds securely.
A hybrid cloud comprises two or more clouds (private,
community, or public) that can be used both locally and off-site
and offers the benefit of multiple operation models to its users.
Through this new offering from H-P, organizations will now be
better equipped to handle hybrid cloud technology as it will now
be significantly easier for them to manage and control their
business applications securely.
The new cloud platform incorporates the next generation of HP
CloudSystem, the HP Hybrid Cloud Management Platform, HP Hybrid
Cloud Design Professional Services and the new HP Public Cloud
VPC, which is designed to make cloud-computing environment more
simple, flexible, efficient and cost effective.
The cloud computing market, according to Gartner, is expected
to grow at a CAGR of 62.0% to $160 billion from 2012 to 2015.
Moreover, the research firm also predicts that the cloud-based
security services market will rise to $3.1 billion in 2015 from
$2.1 billion in 2013. Cloud computing leads to improved services
and elevated security requirements for companies that use it and
H-P's product portfolio is well positioned to benefit from
Additionally, according to H-P, 40% of cloud users have
adopted the hybrid cloud as a part of their operational strategy,
and by 2016, around 75% of IT executives propose to adopt this
cloud-solution to improve services and enhance security for
IT-enabled expansion. We believe that this new offering is ideal
for companies that have an extensive IT infrastructure, which
requires a certain level of compliance and enterprise
Apart from this, we remain optimistic about H-P's strong
business model, as well as its leadership position in both PC and
Server segments. The company is also expected to benefit from an
increase in IT spending and PC refresh cycles.
However, increasing competition from companies like
International Business Machines Corporation
) coupled with continuing macroeconomic challenges and tepid IT
spending will pose challenges, going forward.
Currently, H-P has a Zacks Rank #3 (Hold).
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