H-P Introduces Moonshot Server

Zacks

Hewlett-Packard Co. (HPQ) is all set to usher in a new era of server experience with its ‘Moonshot’ server systems to ease growing demand for cloud computing, e-commerce and Big Data. H-P looks quite confident with Moonshot as it is expected to surpass the benefits of traditional server systems in every possible way.

H-P Moonshot has been designed and customized to absorb specific workloads at an optimum speed, while keeping the system cool. The server runs on Intel Corp.’s (INTC) chips that are used in mobile devices, replacing the idea of using microprocessors in traditional servers. The usage of chips will save space, energy and reduce costs. Statistically, the next generation Moonshot server will save 89.0% of energy, 80.0% of space and 77.0% of cost compared to the traditional offerings.

The new age server systems, the design for which was announced in Nov 2011, will be available in the U.S. and Canada shortly. Within a month of its U.S. launch, the servers will be available in Europe, Asia and Latin America. Prices will start from $61,875 onward.

The server market is dominated by IBM Corp. (IBM), followed by H-P, Dell Inc. and Oracle Corp. (ORCL). In order to maintain their market share and keep pace with the changing demand scenario, the key players continuously introduce new offerings.

Last month, both Oracle and IBM introduced their latest range of servers (not yet shipped), thus intensifying the rivalry between the two tech giants. IBM brought in Power 780 series while Oracle introduced Sparc T5 and M5 servers. Both the companies claimed that their respective servers are faster and economic than the other.

Considering the strength and potential of the key players, it will be exciting enough to observe the war of titans and to judge the clear winner.

H-P has been trying hard to shift its focus from the PC-centric business to the high-margin server, storage and cloud computing space. The back-to-back launches of a new BPO (business process outsourcing) solution, a host of desktop printers, two media players and the Moonshot server indicates that H-P’s plans are well on track.

We are also encouraged by H-P’s continuous deal win momentum.

Currently, H-P has a Zacks Rank #2 (Buy) supported by upward estimate revisions.

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