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Hewlett-Packard Company’s (HPQ) Converged Infrastructure suite was recently deployed by the First American Title Insurance company to upgrade its data center infrastructure. Financial terms of the deal were not disclosed.

The largest subsidiary of First American Financial Corporation (FAF), First American Title provides thorough title searches, title clearance and title insurance policies to facilitate real estate purchases, construction, refinances and equity loans. The company’s operations expedite the transfer of real estate amongst the interested parties.

To manage this gigantic operation as well as to deliver services more swiftly, the company was searching for a reliable medium to switch its data center platform. The search was completed with the ProLiant DL980 G7 server, the most invaluable part of H-P’s Converged Infrastructure Suite.

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.

The H-P solution helped First American Title to improve response times while reducing power usage and costs relating to the transfer of real estate.

H-P’s Converged Infrastructure Suite has witnessed steady demand from various industrial sectors, looking to which the company strengthened the portfolio with the addition of 3Par Inc. (which was acquired in August 2011). Last year, H-P deployed the solution in many organizations to upgrade their data center infrastructures. 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, weak position in the tablet market, which is dominated by Apple, hard disk drive shortages due to the Thailand flood and a strained IT spending in 2012 are concerns.

Currently, H-P has a short-term Hold recommendation (Zacks #3 Rank).

 
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