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Despite the overall 13-percent drop in storage revenue, HP's converged storage revenue rose 18 percent over last year, nearly matching the 21-percent drop in traditional storage revenue.
HP's converged storage business, which includes its 3PAR storage line, StoreOnce deduplication technology, StoreVirtual virtual storage appliance line and StoreAll unstructured data storage technology, has become a real emphasis for the company as sales of its traditional tape and EVA and XP disk lines slip, Whitman said.
However, she said in response to an analyst question, the increased sales of HP's converged storage offerings does not come as a result of cannibalizing sales of its traditional storage.
"Our sales team can only focus on one thing at a time, and converged storage is more disruptive," she said.
Both Whitman and Lesjak said they are confident in HP's storage business going forward as the increase in converged storage revenue quickly overtakes the drop in traditional storage sales.
HP's networking business, which saw revenue rise 4 percent over last year, was another bright spot. Lesjak said HP continues to take market share. "We are the first in the market with a full software-defined networking [SDN] solution," she said.
Furthermore, Whitman said, HP's ISS business has stabilized, and HP expects to grow its 2013 x86 server market by 1 point over last year.
HP also has high expectations for its Project Moonshot line of ARM processor-based servers, which Whitman said are slated to be finally commercialized in the second quarter.
Sales of Project Moonshot servers, which consume 86 percent less power and 94 percent less space while cutting server costs by 63 percent, are expected to build through 2013, with initial customer shipments going to Japan, which suffered power grid disruptions after last year's Tsunami, Whitman said.
"But I don't think it will hit its full stride until next year," she said.
HP's enterprise services revenue fell 7 percent year-over-year to $5.9 billion, while its software revenue fell 2 percent to $926 million. That drop in software revenue was driven by a 16 percent drop in license revenue and an 8 percent drop in services revenue, which more than made up for an 11 percent increase in support revenue.
Even so, Whitman said, HP experienced high double-digit growth in its security software and its Vertica business analytic software business, and that HP's Autonomy business was starting to stabilize.
"But [Autonomy's] still a work in progress, and it will take time to get back on track," she said.
HP Financial Services revenue rose 1 percent to $957 million.