After the announcement of the much-hyped acquisition of 3Com Corp. (COMS), Hewlett Packard Co. (HPQ) has decided to beef up its education portfolio.
The three new easy-to-manage education solutions are tools for classroom teaching. The first is the HP MultiSeat, which enables a group of students to access a single host computer at the same time, thereby reducing the need to install additional host computers for uninterrupted data access. The second is the HP TeachNow, which helps teachers from non technical back grounds to address students using technology. Finally, HP SchoolCloud enables both students and teachers to access their applications and data from anywhere with the help of the Internet.
The rapid growth of the primary and higher education sector across the world is being driven by the increasing demand for skilled professionals, particularly in developing countries. This is a recession-proof industry and mostly remains unaffected during economic turmoil. Growth on the other hand, is driven by population demographics. So we believe that HP’s venture into this segment will prove beneficial for them as institutions rapidly incorporate new technology to make the learning process more effective.
This apart, the company recently introduced three new computing solutions that are expected to deliver affordable computing for business and education sector customers. At the same time, they will bring the efficiency of data center computing to the desktop. These products include the HP thin client for optimizing the end user experience of client virtualization, HP client virtualization solutions for providing better user experience at competitive prices, and HP MiniSeat Solutions, which can almost double computer usage without increasing IT budgets.
So it can be easily inferred that, HP is blazing all guns for growth. The company is using both acquisitions and organic growth through innovative new products to retain its leadership position in the computing market.  The company’s largest competitor Dell Inc. (DELL) is also rolling out new products and solutions, but at a slower pace than HP.
The recent initiatives taken by HP makes us more positive on the company and we expect the company to deliver better results going forward.
Read the full analyst report on “COMS”
Read the full analyst report on “HPQ”
Read the full analyst report on “DELL”
Zacks Investment Research