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HP & Google to Simplify IT for SMBs

Zacks Equity Research

Hewlett-Packard Company (HPQ) is transforming itself into a more dynamic organization. The company recently announced the first phase of HP SMB IT in a Box, which basically covers PCs, printers, management console, administration and customer support and Google Apps. This is the first initiative taken by HP to combine its technology with Google (GOOG).

HP already has in its kitty a number of products based on Google's Android and Chrome operating systems. This includes the HP SlateBook x2, HP Slate7 and the HP Chromebook.

HP SMB IT leverages HP hardware such as the PC and printers, with the help of Google Apps to be used in businesses. Apart from this, the cloud-based communication and collaboration tools are also taken into consideration. In addition to this, Google Apps support around 5 million businesses on a daily basis, covering services such as Gmail, IM, Calendar, Drive, Docs and more.

This technology is economically beneficial for the SMBs as they substitute the high cost of human labor.

 HPQ already has a number of solutions for the cloud computing segment that are making life easier for its SMB customers.

Moreover, the SMBs’ endeavors to expand the application of information technology in day-to-day business activities will drive SMB IT spending over the coming years. We believe that HP, with its strong position, would be able to capitalize on government initiatives.

However, HP has to compete with Computer Sciences Corp. (CSC) and International Business Machines (IBM) in the SMB service space.

Currently, HP has a Zacks Rank #3 (Hold).

Investors may also consider technology stocks such as SanDisk Corp. (SNDK), having a Zacks Rank #1 (Strong Buy) and Pegasystems Inc. (PRGS), which has a Zacks Rank #2 (Buy).

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