DELL Dell Inc. (MM)

The world’s largest computer maker, Hewlett-Packard Company (HPQ) recently announced that VIVACOM Bulgaria has adopted its solutions to design a next-generation intelligent network (NGIN), with the intention of becoming more efficient and thereby earn higher profits.

VIVACOM’s next-generation intelligent network will be aimed at extending a more personalized experience to more than 600,000 prepaid and virtual private network customers.

 VIVACOM is a telecommunications service provider, with presence in fixed and mobile voice, broadband, data and television segments. By adopting NGIN, which incorporates voice-over-Internet Protocol (VOIP)-based applications, VIVACOM should be able to strengthen its existing services and real time network capabilities.

 HP’s technology is affordable and within the budget of many small and medium business companies. The voice-based technology makes human interactions separated by geographical distances easy and affordable. It can be used to train professionals anywhere in the world over the Internet, while financial teams can discuss complicated models with counterparts and engineers or technocrats can discuss sophisticated engineering designs.

 We believe this new VOIP module gives the company a good business opportunity, as it is an advanced way of communication that is gaining popularity every day.

The company is constantly offering new products and advanced technological solutions as a means of wooing customers.

After revamping its printing segment through new products and technology as well as a strategic partnership with Toshiba for selling its laser jet printers, Hewlett Packard has augmented its notebook product line. The company has come up with advanced gadgets in this segment.

As IT spending by companies continues to show signs of improvement, we expect this new videoconferencing module to generate additional business going forward.

This apart, HP is focusing on cloud computing as well. The company expects the cloud computing market to generate $143.0 billion by calendar year 2013. The company intends to play a pivotal role in the expansion of private and public cloud computing networks throughout the world. Moreover, HP also intends to increase its market presence in the business analytics software segment.

We remain positive on HP’s performance going forward, given its leadership position in the PC and Server segments, as well as its initiatives to tap fast-growing adjoining markets. But we are not very confident about substantial improvement in the company’s consumer business in the near future, due to significantly higher competition from Dell Inc. (DELL) and Acer.

The company has a short-term Hold recommendation (Zacks #3 Rank).

 
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