Hybrid Cloud Portfolio Could Drive HP Services Growth in 2015

Changes to the way HP Services (HPQ) does business may position the business unit for growth in 2015 after a disappointing quarter. So believes Technology Business Research analyst Cassandra Mooshian, who commented on the unit's quarterly earnings by saying it is "taking strides to rely less on hardware sales to drive technology services revenue by developing new services that better address market demand for more complete IT solutions, particularly around cloud, analytics and mobility."

Cloud is one of the ways HP Services will likely improve its financial performance, and it's already making strides with the January release of the latest version of CloudSystem, which enables customers to manage and deploy clouds from a single user interface.

"TBR believes the addition is aimed at capitalizing on increasing demand for hybrid clouds as customers seek to leverage the cost benefits of public clouds while maintaining the security benefits of private clouds," Mooshian wrote. "TBR believes the outcome from the recent uptick in cloud demand will be hybridization, with the majority of clouds having both public and private components within the next two to four years."

According to Mooshian, CloudSystem positions Hewlett-Packard to grow its hybrid cloud adoption rate from what TBR currently believes to be 10 percent to the mid-teens. Not an insignificant gain at all. It's not gains the technology vendor is likely to see until 2015, though.

In addition to CloudSystem, Mooshian also identified HP Hybrid Cloud Design Professional Services as a way to help customers transition to a hybrid cloud infrastructure.

"TBR believes HP will ramp up development of cloud consulting offerings in 2014 to provide vertical-focused and customized cloud solutions as the firm accelerates its shift to a higher margin consulting-led model with industry focus," Mooshian explained.