Hewlett Packard Eases Business Disruptions With VDI Solutions

Hewlett Packard Enterprise HPE is joining the bandwagon of tech giants that are making efforts to help businesses ease the transformation to an era of work from home. As businesses across the globe are scrimmaging to adapt to a remote workforce, Hewlett Packard recently announced a series of initiatives in the face of the coronavirus outbreak, including a powerful virtual desktop infrastructure (VDI) solution and flexible payment options for the VDI offerings.

The Moonshot will come with the new HPE ProLiant m750 Server Blade and improve performance by more than 70% while consuming 25% less power than the previous generation.

Notably, in virtualized desktops and applications, the ProLiant m750 Server Blade can support nearly 33% percent more remote workers.

Hewlett Packard is also releasing some SME-targeted VDI preconfigured solutions, built on ProLiant or Synergy servers designed for Citrix CTXS and VMware VMW environments, to address the needs of enterprises with 80 to 2,000 employees.

Hewlett Packard Enterprise Company Price and Consensus

Hewlett Packard Enterprise Company Price and Consensus

Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote

Virtual desktops have seen a spike in demand since the spread of the coronavirus, which led to social distancing and a growing at-home workforce. However, many customers are finding it challenging to migrate to a VDI model.

Hewlett Packard’s new initiatives will allow client enterprises to quickly and securely design and customize their VDI deployments in response to users’ requirements while saving capital.

Competition & Other Challenges

Markedly, per OMR Global, the global VDI market is expected to see a CAGR of 11.4% between 2019 and 2025.

North America has a significant share in the global VDI market, supported by developed IT infrastructure and the adoption of cloud virtualization by enterprises. Moreover, OMR Global also noted that the presence of major virtual data infrastructure platform vendors is expected to support the growth of the market in the region.

Few major VDI players competing with Hewlett Packard include stalwarts like Cisco Systems CSCO, Microsoft, NetApp and Oracle.

Notably, in the wake of the coronavirus pandemic, various companies are taking extra steps to capitalize on the opportunity created by the growth in VDI demand.

For instance, Nutanix recently launched FastTrack for VDI to enable channel partners to create a VDI environment in a few days. This launch came in close heels with Hewlett Packard’s VDI announcement.

To add to its woes, Hewlett Packard’s supply chain has been significantly disrupted due to the coronavirus outbreak in China. Furthermore, organizations are pushing back their big and expensive technology products due to a slowdown in the global economy. Additionally, more and more organizations are continuing to shift to cloud computing, owing to its maintenance-free and cost-effectiveness compared with standalone servers. Hewlett Packard currently carries a Zacks Rank #5 (Strong Sell).

Nonetheless, with growing efforts and a significant share in the VDI market, given the sound prospects of the industry, Hewlett Packard is likely to withstand competition and tide over uncertain times.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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