) claimed that its Application Performance Management (APM)
software has helped different companies to enhance their business
performance. The responses of customers have also shot up for these
companies as a result.
Vodafone and HP channel partner J9 Technologies are the latest
customers to use the software to assess their IT infrastructure
Given its ability to monitor aspects of existing infrastructure
systems to improve their efficiency and operation, HP's APM
solution should see steady adoption. Especially considering the
fact that most companies are moving to a cloud-based model where
efficiency of IT operations is of paramount importance.
Although public and private enterprises have reduced their IT
spending budgets, which could have affected repeat orders from
existing and new customers, HP is seeing a steady flow of new
business as the company is adopting innovative strategies that
bring value to customers in the current environment while at the
same time playing to its own strengths.
However, HP continues to see many challenges, stemming mainly
from macroeconomic concerns and secular changes in the printing
) exit from the printing business could improve chances of share
gains, this is not likely to be meaningful in the long term, as the
inkjet market continues to shrink due to the easy availability of
mobile media devices such as tablets and smartphones, which are
reducing the need for taking printouts.
Margins in the services business are also likely to remain weak
HP is implementing various strategies to generate growth.
Recently, the company took some major restructuring actions to
manage costs, drive growth and improve the health of its balance
Currently, the company holds a Zacks #3 Rank (Hold).
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