Hewlett-Packard Company (HPQ) recently announced that the Department of Water Resources (DWR) of the State of California has deployed its Converged Infrastructure suite by replacing the existing servers of Dell Inc. (DELL) and Sun Solaris systems. Financial terms of the deal were not disclosed.
The California DWR is responsible for management and regulation of water usage in the State of California. The department operates and maintains the nation’s largest state-built water and power development and conveyance system, supplying water to 25 million residents and 750,000 acres of farmland.
Under the terms, H-P offered its BladeSystem technology and Thermal Logic solutions to California DWR. The BladeSystem technology helps an organization to consolidate its servers from 600 to 160, leading to faster processing with lower maintenance burden. Thermal Logic helped in making the data center more energy-efficient by keeping the entire system cool.
Leveraging H-P’s converged suites, California DWR will now be able to reduce energy consumption and server maintenance costs significantly. Apart from this, H-P’s support will enable the department to make upcoming water projects operational quickly.
H-P’s Converged Infrastructure solutions 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. 3PAR’s (acquired in August 2010) highly-virtualized storage solutions with advanced data management features (dynamic tiering, thin provisioning, etc.) for cloud-computing environments further strengthen H-P’s Converged portfolio.
Earlier this year, leading property consultant firm Knight Frank LLP also deployed H-P’s Converged Infrastructure suite. With the help of H-P’s Converged platform, Knight Frank was able to lower ownership costs as well as total information technology costs. Moreover, the platform enabled significant reduction in carbon emission, helping Knight Frank to become an environment-friendly organization.
In today’s technology-driven world, the enterprise storage space is one of the most enviable growth areas. We believe that H-P, with its renewed strength in the Converged portfolio, will remain well positioned to capitalize on this market.
Despite the company’s market position and compelling product line, we remain cautious about future growth, especially as competition from other big technology players, such as Cisco Systems Inc. (CSCO), Apple Inc. (AAPL), Acer, and Dell intensifies.
Moreover, the separation of Personal Systems Group (PC business) from HP through a spin-off or other transaction is expected to change the dynamics of the company’s business to a certain extent. This apart, the company has to come up with new strategies to counter the fierce competition in the cloud computing space.
Currently, H-P has a Zacks #5 Rank, which translates into a short-term Strong Sell recommendation.
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