Hewlett-Packard Company’s (HPQ) Converged Infrastructure suite was recently deployed by the International Fund For Animal Welfare (IFAW) for the purpose of improving its data center infrastructure. Financial terms of the deal were not disclosed.
The IFAW is currently one of the largest animal welfare and conservation charities in the world. Founded in 1969 to stop the commercial hunt for white-coat harp seals in Canada, it conducts campaigns and programs aimed at protecting endangered animals.
Per the contract terms, H-P will be selling its ProLiant DL380 G7 servers, 2510 and 2810 network switches; Ultrium 448 and 460 SAS tape drives and Enterprise Virtual Arrays to the organization. The products in combination will support the IFAW to upgrade the legacy system so as to meet the increasing global demand for charity efforts.
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, and also 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 strengthens HP’s Converged portfolio.
In September, H-P announced that the London-based renowned retail tailor Spencer Hart had deployed its Converged Infrastructure suite to make its worldwide expansion possible through the deployment of a cost effective, fast and secure data management process within the company’s IT eco system. In the same month, the State of California Department of Water Resources (DWR) reportedly 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.
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 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 H-P’s positive deal momentum, 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 Inc. (DELL) heats up. Moreover, weak computing demand and lackluster position in tablets as against Apple are keeping the investors confused and making them bearish on the stock.
As a result, H-P now has a short-term Sell recommendation (Zacks #4 Rank).
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