Hewlett-Packard Co. (HPQ) recently announced its success story with Russia’s federal mobile broadband services provider, Yota, which has reportedly improved business performance with the tech giant’s software services. Financial details of the deal, signed some time back, were not divulged.
In 2006, Yota started providing broadband services through WiMax, which is an IP-based technology suitable for providing data rates of 30-40 megabit per second. Now, the broadband provider has shifted to a much faster 4G LTE (fourth generation Long Term Evolution) technology, which is capable of transferring data at a speed of 100 megabyte per second. This technology calls for real time processing and analysis of sizable data, which has been taken good care of by H-P’s Vertica database analytical tool.
Leveraging H-P’s Vertica, Yota found it easy to launch its latest 4G LTE connection across 10 Russian cities. Yota also intends to spread its network connection across other major regions.
In the current competitive environment, customers need more dynamic architectures that can easily manage bulk data and information streams. Vertica’s platform helps customers to analyze massive amounts of data simply, quickly and reliably, resulting in “just-in-time” business intelligence. H-P acquired database technology maker Vertica Systems in March 2011.
In October 2011, H-P acquired Autonomy Corporation at a staggering price, with a focus on its unstructured data analytics engine. The acquisitions increased H-P’s exposure in the data analytics market, leading to enhanced business volumes.
The data analytics business forms part of H-P’s Software segment. This was the only segment that recorded a year-over-year growth (18.4%) during the last quarter. This shows that H-P’s focus on the high-margin software market has started paying off.
However, slowing overall profitability, lackluster PC demand, uncertainty over new product ramps, competitive pressure from Dell Inc. (DELL) and overall macro uncertainty keep us on the sidelines.
Currently, H-P has a Zacks #3 Rank, implying a short-term Hold rating.
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