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"For the past two years, HP along with many major vendors like Amazon, Google, IBM, Microsoft , Oracle et al, have been extremely vocal and active in showcasing and marketing their cloud service products, services and strategies," DiDio said. "None of the large vendors can afford to ignore the burgeoning cloud computing market segment."
DiDio said the cloud segment is especially crucial for HP, which has been hurt from the declines in the overall PC and printing arenas -- two of HP's core competency segments. Her advice to HP: Aggressively pursue new market segments to offset the contraction in commodity hardware, and cloud computing is a natural progression for HP.
"HP's existing services organization is well developed and well respected worldwide. Based on HP's history of success in the services segment, it should be able to effectively challenge entrenched cloud services providers like Amazon and Google by upselling within its existing customer base and using its respected brand to pursue greenfield opportunities," DiDio said. "Large hosted public clouds are a fast-growing market. There's plenty of room for HP, but it must be able to challenge Amazon on price as well as performance to win new business."