Credit: Shutterstock photoRecently, technology giant Hewlett-Packard Co.HPQ or H-P came up with a series of new products at VMworld 2015, which are tailored to ensure smooth transition to VMware, Inc.'s VMW vSphere. It includes new hyper-converged and all-flash storage systems. Customers can easily migrate to VMware vSphere by using H-P's new solution that helps consolidate virtual machines, hosts and clusters at lower upgrade costs and improves operating efficiency.
To name a few, the products include HP FlexFabric 5930, HP Converged Architecture 700, Software-defined Compute Services, HP Client Virtualization Services, HP Network Virtualization support services and HP Education Services for VMware vSphere 6.
H-P - VMware Relationship
Hewlett-Packard and Vmware are long-time partners in the data center. At present the two companies are working to take their relationship to a new level to battle their mutual competitor Cisco Systems CSCO .
Hewlett-Packard will combine its Virtual Application Networks SDN Controller with the VMware NSX network virtualization platform that provides a private cloud-based service. This would make the cloud-computing environment more secure, simple, flexible and efficient. The move will enable Hewlett-Packard to offer an efficient and improved hybrid IT environment to drive performance.
The VMware NSX network virtualization platform will ward off difficulties while setting up a mature virtualized cloud-based infrastructure. This is turn will help Hewlett-Packard to expand its existing networking-based infrastructure with the benefits of the VMware NSX network application.
As VMware remains one of the leading companies in the virtualization and cloud computing space, we believe that these new products will improve and diversify the company's product offerings, thereby driving top-line growth.
Last Word
Hewlett-Packard has always been optimistic about its technical supremacy in the cloud computing market and believes this will ultimately lead to market share gain for the company. Apart from this, the company also enjoys long and excellent customer relationships, and offers excellent product quality. The recent product launches are expected to strengthen the foothold of the company in the already thriving virtualization and cloud computing space.
Also, the new product launches will push Hewlett-Packard further toward the high-margin enterprise storage space, thereby cutting its dependence on the PC market.
Nonetheless, the heightened level of competition from companies like International Business Machines IBM is forcing Hewlett-Packard to spend more on research and product development, which is driving up costs. The weak PC market and sluggish macroeconomic environment add to its woes.
Currently, Hewlett-Packard has a Zacks Rank #3 (Hold).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
