) or H-P recently announced that U.S.-based privately-held online
payment processing company First Data Corp. will opt for its
Converged Infrastructure portfolio. Financial details of the deal
were kept confidential.
First Data processes payments through debit/credit cards,
pre-paid cards, gift cards, Internet and mobile phones. It also
provides fraud protection and authentication solutions, credit
reporting agency services (through First Data Merchant Services
Corporation) and electronic check acceptance services.
First Data will use H-P's Converged Infrastructure portfolio for
its flagship VisionPlusFlex, a software solution to enable
financial institutions to promptly process and issue
credit/debit, pre-paid and commercial cards. Leveraging H-P's
cloud portfolio, First Data will be able to enhance the scope of
VisionPlusFlex. H-P's technology will allow First Data to offer
an appliance delivery model of the VisionPlusFlex software.
VisionPlusFlex appliance is expected to be cost effective (as
total cost of ownership will be lower and can be easily
integrated into financial institutions' existing systems) and
highly efficient to securely process payments across the country.
H-P's Converged suites bring together servers, storage and
networking products to manage data centers from a common
platform. The Converged platform has been designed to make data
center handling simpler, more flexible, efficient and cost
effective. Close association with H-P is expected to boost First
Data's capabilities in handling growing demand for e-commerce and
online payments as well as remain competitively ahead.
We believe H-P's success with First Data will bring in similar
deals as the exponential growth in the e-commerce field and
online payments would require related companies to opt for
advanced technologies to remain profitable.
Deal wins from different industrial sectors do not come as a
surprise but winning deals in the storage, server and software
areas is significant. While there may not be a remarkable
increase in near-term revenues, it could ultimately offset the
challenges in the PC business.
Currently, H-P has a Zacks Rank #2 (Buy). Investors can look at
other companies, such as,
) carrying a Zacks Rank #1 (Strong Buy), and
Hutchinson Technology Inc.
Western Digital Corp.
) carrying a Zacks Rank #2 (Buy).
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