Hewlett-Packard Company (HPQ) recently announced that the London-based renowned retail tailor Spencer Hart has deployed its Converged Infrastructure suite. Financial terms of the deal were not disclosed.
Spencer Hart designs custom-made suits mainly for men’s wardrobes and serves celebrities such as David Beckham, James Corden, Lawrence Dallaglio and Robbie Williams. The growing demand for its customized products has forced the fashion house to opt for HP’s converged infrastructure suite to support further growth.
Per the contract terms, HP will offer its ProLiant DL380 G7 servers, E2510 network switches and Ultrium 920 SAS tape drive. All these will support Spencer Hart in its worldwide expansion through the deployment of a cost effective, fast and secure data management process within the eco system.
HP’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 will further strengthen HP’s Converged portfolio.
Last week, the State of California Department of Water Resources (DWR) deployed its Converged Infrastructure suite, replacing existing servers from Dell Inc. (DELL) and Sun Solaris systems. Leveraging HP’s converged suites, California DWR will now be able to reduce energy consumption and server maintenance costs significantly. Apart from this, HP’s support will enable the department to make upcoming water projects easily and quickly operational.
Earlier this year, leading property consultant firm Knight Frank LLP also deployed HP’s Converged Infrastructure suite. With the help of HP’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 HP, 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 its future growth, particularly as competition from other big technology players, such as Cisco Systems Inc. (CSCO), Apple Inc. (AAPL), Acer and Dell heats up.
Moreover, the separation of the Personal Systems Group (PC business) from HP or any other transaction could change the dynamics of the company’s business. Following this news, the analysts were compelled to lower their estimates. As a result, HP now has a short-term Strong Sell recommendation (Zacks #5 Rank).
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