HP Makes Its Move: Adds Box’s Cloud Collaboration to PCs

HPQ: Hewlett logo

On Monday, HP (NYSE:HPQ) announced it will be offering the Box cloud content-management and collaboration platform on select small and midsize business and enterprise devices. [1] The move, surprisingly, comes in tandem with a survey from PCWorld on ‘Desktop PC Reliability and Satisfaction’, in which HP’s business and home PCs performed poorly on parameters like durability and product support compared to most of their competitors including Apple (NASDAQ:AAPL), Asus and Acer. Dell (NASDAQ:DELL) also performed poorly – especially in the home segment. [2]

HP earlier confirmed that it will not be spinning off its PC division as ex-CEO Leo Apotheker has suggested. [3] We currently estimate that PCs (including desktops and notebooks & netbooks) make up nearly 13% of our $42 Trefis price estimate for HP.

See our full analysis of HP

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HP Looking to Better Its Competitors

In the third quarter of 2011, HP’s PC shipments increased by a mere 5% year over year compared to competitors Lenovo and Asus’ which posted over thirty percent annual growth. This has made the leading PC vendor in the world realize that it needs to provide better tools and greater value to its customers in order to remain successful as well as maintain its leadership. Customers who purchase select HP Compaq Elite and HP Compaq Pro business desktops will have access to special offers from Box that include increased storage capacity and enterprise sync for enhanced collaboration and content management in the cloud.

According to HP:

Our customers are entering a new era of data management and storage, and they need a simple, cost-effective way to collaborate and share information in the cloud. HP’s broad range of PCs plus Box’s scalable service provides the desirable security, functionality and features to meet the needs and budgets of our customers.

New Offering In-line with HP’s Cloud Strategy

The move also makes sense considering the rapidly growing importance of Cloud services. According to Gartner’s estimates, $74 billion was spent on public cloud services in 2010 representing only 3 percent of enterprise spending. The research firm predicts the public cloud services to grow five times faster than overall IT enterprise spending (19 percent annually through 2015). Thus, in addition to increasing the value proposition of its PCs, HP by partnering with Box, is focusing on redefining the way organizations manage and share information as well Cloud strategy and make the most of it.

Understand How a Company’s Products Impact its Stock Price at Trefis

  1. HP and Box Accelerate Business Collaboration in the Cloud, HP []
  2. Desktop PC Reliability and Satisfaction: Dell and HP Home PCs Get Poor Grades, PCWorld.com []
  3. H-P CEO starts to undo the damage, marketwatch.com []