Although data shows that Hewlett-Packard Company (NYSE:HPQ) has been struggling to keep its top position in the server market, there is a bid of good news for the company. Chief Executive Officer Meg Whitman reports that Apple Inc. (NASDAQ:AAPL) and other service providers are “very interested” in their Moonshot servers.
Companies said to be interested in HP’s Moonshot servers
CRN reported earlier this week that Whitman named a few companies as being specifically interested in the servers. In addition to Apple Inc. (NASDAQ:AAPL), she also mentioned Facebook Inc (NASDAQ:FB), Baidu.com, Inc. (NASDAQ:BIDU) and Tencent Holdings Ltd (HKG:700). However, she stopped short of making any official announcements that any of these companies were officially adopting the hyperscale servers.
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Whitman also said that Hewlett-Packard Company (NYSE:HPQ) runs its own website on Moonshot servers, which use only the amount of power that would operate 12 60-watt light bulbs. The servers are considered by many in the industry to be a major breakthrough because of their extreme energy efficiency in relation to other servers and also their smaller size.
Goldman remains cautious on HP
In a report issued to investors this week, Goldman Sachs analysts Bill Shope, Elizabeth Borbolla, Cristina Colon and Justin Price said in spite of these intimations that major companies may start adopting Hewlett-Packard Company (NYSE:HP)’s Moonshot servers, they remain cautious on the company.
They note that the servers have “made it an early leader in this segment, particularly relative to its traditional server competitors.” They see the servers as being “an important pocket of innovation” at HP, but they note the secular and competitive challenges faced by most of the server business.
In the same report, the analysts also point out that Hewlett-Packard Company (NYSE:HPQ)’s unit shipment market share fell during the June quarter. This was the second quarter in a row that the company marked share loss. According to CRN, IDC indicated that HP’s falling shipment trend is a sign of the transition away from traditional rack and blade servers over to hyperscale servers.
HP remained the top server provider in terms of market share in spite of its falling shipments, although Goldman Sachs analysts believe that some segments of the company, like its industry standard servers, will keep dragging on the company’s revenue and profits “for some time.”
At this point it may be too early to tell the true impact of Hewlett-Packard Company (NYSE:HPQ)’s Moonshot servers on its revenue and profits. It will take a few more quarters to learn if major companies really are going to switch over to the company’s hyperscale servers. Moonshot was just unveiled in April.