In the U.S., however, competition is too tough. Bigger players like International Business Machines Corp. (NYSE:IBM) are elbowing out players like HP through recurrent service overhauls and constant signing of new deals. In its most recent move, IBM announced enhancements throughout its systems portfolio that would aid the faster adoption of cloud computing among organizations. As part of the improvements, IBM has advanced a new mobile solution based on its Worklight server that will enhance clients’ access to millions of mobile users by reducing mobile application deployment times to as little as 30 minutes.
At the moment, HP is in no position to wage a combative battle against International Business Machines Corp. (NYSE:IBM). Not only does IBM have overflowing coffers and a wide client base, but Hewlett-Packard is currently cash strapped.
Emerging markets, however, present an opportunity for Hewlett-Packard Company (NYSE:HPQ) to capitalize on cloud computing without much competition. Back in Kenya (again), Hewlett-Packard has inked a cloud computing deal with Central Bank of Africa (CBA). The deal, inked earlier in the year, was worth $800,000. Going by standards set by Wall Street’s movers and shakers, the deal value is relatively dismal. Nonetheless, the cloud computing deal is indicative of things to come and further signals growth potential moving forward.
HP’s 3PAR storage system will allow CBA to reduce its administration time by 90% and its cut its costs by 50%. In addition, it will increase the bank’s storage capacity by 41% to 50 terabytes. These huge benefits are likely to attract CBA’s competitors, some of which are bigger, toward cloud computing. And since the deal is not exclusive, there is huge growth potential for HP. Kenya has been keyed out for rapid economic growth and technological advancement moving forward. HP’s increased presence in the country is therefore a good play.
Conclusion
As illustrated, HP and Microsoft Corporation (NASDAQ:MSFT) are making notable inroads in emerging markets. However for these two, the huge catch is not corporate social responsibility or potential growth as many would want to believe. It is the opportunity to offset slow progress in the PC sector.
Lennox Yieke has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines. and Microsoft. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article 2 Tech Titans Working Behind the Scenes to Offset the PC Slump originally appeared on Fool.com and is written by Lennox Yieke.
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