© 2006 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Building anAdaptive Infrastructure

Andrew Manners

StorageWorks Division UK&I

Key vendors by EMEA revenues

Note: IBM rev excludes PWC consulting rev prior to acquisition Source: Company 10Qs, HP internal numbers

Trend (rolling 4 Qtr) - EMEA IT Vendor Revenues ($B)

0

5

10

15

20

25

30

35

40

Q4/

02

Q1/

03

Q2/

03

Q3/

03

Q4/

03

Q1/

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Q2/

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Q3/

04

Q4/

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Q1/

05

Q2/

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Q3/

05

Q4/

05

Q1/

06

Q2/

06

HP

IBM

Dell

Canon

Accenture

Cap Gemini

Atos

EDS

Sun

CSC

EMC

Losing Patience With EMC By Stephen D. Simpson, CFAJuly 14, 2006

I know there's a positive spin to the quarter -- that the company wasn't able to fulfill all of the demand for high-end systems -- but I'm just not fully buying it. I think companies like Hewlett-Packard (NYSE: HPQ) are gaining on EMC and I'm skeptical about how it'll do against the IBMs (NYSE: IBM), Microsofts (Nasdaq: MSFT), and such on the software side.

Losing Patience With EMC By Stephen D. Simpson, CFAJuly 14, 2006

I know there's a positive spin to the quarter -- that the company wasn't able to fulfill all of the demand for high-end systems -- but I'm just not fully buying it. I think companies like Hewlett-Packard (NYSE: HPQ) are gaining on EMC and I'm skeptical about how it'll do against the IBMs (NYSE: IBM), Microsofts (Nasdaq: MSFT), and such on the software side.

EMC Cuts Full-Year Sales Forecast; Revenue to Exceed $10.8 BlnBloomberg / July 14, 2006By Ron Day

“HP is going through a resurgence of some magnitude in terms of their product competitiveness, and I'm sure EMC is feeling some of that,” said Matthew Kaufler, who helps manage $2.6 billion at Clover Capital in Rochester, New York.

EMC Cuts Full-Year Sales Forecast; Revenue to Exceed $10.8 BlnBloomberg / July 14, 2006By Ron Day

“HP is going through a resurgence of some magnitude in terms of their product competitiveness, and I'm sure EMC is feeling some of that,” said Matthew Kaufler, who helps manage $2.6 billion at Clover Capital in Rochester, New York.

IDC Confirms HP’s Global Leadership in StoragePosted June 2, 2006

The HP StorageWorks Enterprise Virtual Array (EVA) increased it’s external disk array revenue share for the fifth consecutive quarter, growing 46 percent year-over-year in the latest quarter.

IDC Confirms HP’s Global Leadership in StoragePosted June 2, 2006

The HP StorageWorks Enterprise Virtual Array (EVA) increased it’s external disk array revenue share for the fifth consecutive quarter, growing 46 percent year-over-year in the latest quarter.

We remain concerned that EMC is facing heightened competitive pressures in its systems business, primarily from HP (HPQ) and Hitachi….

-J.P. Morgan, Bill Shope

We remain concerned that EMC is facing heightened competitive pressures in its systems business, primarily from HP (HPQ) and Hitachi….

-J.P. Morgan, Bill Shope

In the pressHP Taking the Gloves Off June, 2006

IDC Event Flash regarding the HP Americas StorageWorks Conference.

HP Taking the Gloves Off June, 2006

IDC Event Flash regarding the HP Americas StorageWorks Conference.

HP Internal use only

EMC acquires more companies but wants more respectJune 20, 2006ZDNet writer Dan Farber’s blog

During the dinner, Lewis ticked off the strengths of EMC's product portfolio… But, he expressed frustration that EMC doesn't get the respect he thinks it deserves…Like all companies, EMC wants Google-like multiples, or at least to have some of the love that is HP is getting lately. In the last year, HP's stock has appreciated about 30 percent, which has the effect of garnering more respect among competitors, customers and Wall Street.

EMC acquires more companies but wants more respectJune 20, 2006ZDNet writer Dan Farber’s blog

During the dinner, Lewis ticked off the strengths of EMC's product portfolio… But, he expressed frustration that EMC doesn't get the respect he thinks it deserves…Like all companies, EMC wants Google-like multiples, or at least to have some of the love that is HP is getting lately. In the last year, HP's stock has appreciated about 30 percent, which has the effect of garnering more respect among competitors, customers and Wall Street.

April 22, 20234

Business and IT synchronized to capitalize on change

Business

Information Technology

Business benefits: simplicity, agility, value

The Adaptive Enterprise

HP IT snapshot

2005 2008

Data Centers 85+ in 29 countries 6 global data centers in 3 locations

Data Marts 762+ 1 enterprise data warehouse

Applications 3,600 ~1,500

HP IT Sites 100+ in 53 countries ~25 core sites

IT Professionals ~19,000 including large contingent

workforce

~8,000 including small contingent

workforceInnovation <50% of resources

time dedicated80% of resources time dedicated

April 22, 20236

Business and IT synchronized to capitalize on change

Adaptive Enterprise

Infrastructure

Information

Applications

BusinessCommunications, Media and Entertainment

Financial Services Industry Manufacturing and DistributionPublic Sector

Management Services

Adaptive Enterprise Solutions

Adaptive Infrastructure

April 22, 20237

Operational spending growing at 3x other systems costs

WW Spending (US$B)

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200 New server spending (USM$) 3% CAGR

’96 ’97 98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Many Servers, Much Capacity, Low Utilization = $140B unutilized server assets

Cost of mgmt. & admin. 10% CAGR

April 22, 20238

Only 10% or less of budget is left for innovation

IT budgets have little left for innovation

Operations - Management and

Maintenance

65%

Migration and Upgrades

25%

Innovation and New Functions

10%

April 22, 20239

Optimize IT Infrastructure

• Standardize server and storage environment

• Consolidate systems and data centers

• Infrastructure continuity and availability

Automate IT Service Delivery

• Define and implement IT services – infrastructure, applications, information services

• IT shared service utility

• IT shared service transformation

Manage IT Infrastructure

• Unify infrastructure mgt tools and processes

• Secure IT infrastructure

• Automate IT mgt processes

• Align IT infrastructure with the business

Current state Future stateHigh-costIT islands

Low-costpooled ITassets Automated 24x7

lights-out computing

Adaptive InfrastructureHow we deliver

AutomationVirtualizationSecurityIT Systems & Services

Power & Cooling Management

Customer initiatives and HP offerings

Adaptive Infrastructure Journey

AutomationVirtualization

Current state Future stateHigh-costIT islands

Low-costpooled ITassets Automated 24x7

lights-out computing

Power & Cooling Management

• Leverage industry standard components

• Create Scalable solutions based on standards

• Deliver standardized IT services and solutions based on best practices

• Drive solutions to address power-density requirements

• Embed security at every level in the data chain

• Drive and leverage industry secuiry standards and practices

• Pooling and sharing of IT resources to optimize utilization

• Deliver model-based automation to optimize operations

• Automate to increase agility and simplicity

• Unified Infrastructure Management

Key enablers

IT Systems & Services Security

April 22, 202311

AutomationVirtualizationSecurityIT Systems & Services

Adaptive Infrastructure

Current state Future stateHigh-costIT islands

Low-costpooled ITassets Automated 24x7

lights-out computing

Systems:• HP BladeSystem• HP ProLiant

servers • HP Integrity

servers - NonStop servers• HP StorageWorks - Clustered

Gateway

Services:• Agility

Assessment• Factory Express• C & I services• Technology

Services• Managed Services• Education &

Training• Financing services

Software:• Systems Insight

Manager• Insight Control• HP Essentials - ProLiant - Integrity - Storage• HP OpenView - System & NW

Mgt - Event & Perf Mgt - App Mgt - Cons Service

Desk - Asset MgtServices:• IT Service Mgmt • Infrastructure

Mgmt• Data Center Mgmt

Systems:• Virus Throttling• Vulnerability &

Patch Mgmt• HP-UX 11i security - Secure partitions - Intrusion

Detection• ProCurve Identity

Mgr

Software:HP OpenView - Identity mgmt - Access control - Federated access - Audit

Services:• Security Gov &

Mgmt• IT Security

Assessment• Adaptive Net. Arch.• Security Ed &

Training

Systems:• Virtual Connect• Integrity Virt.

Machine• Virtual Machine

Mgmt• Virtual Server Env’t - Capacity Advisor• Serviceguard • NonStop Real Time

Ent.• StorageWorks - Ent. Virtual Array - External storage XP - Reference Info Storage System• Utility Pricing

Services:• IT Shared Services• Virtualization

services• Flexible Computing

provisioning services

Systems:• HP Essentials

automation• Virtual Server

Env’t automation

Software:• HP OpenView - Configuration

Mgmt - Service Activator Services:• Automation

services• Instant Support

Enterprise Edition• Integrated Support• Mission critical

support

Power & Cooling

Systems:• Thermal Logic• Modular Cooling

System• Power

Management - BladeSystem

- ProLiant servers - Integrity

servers• Universal Rack

infrastructure

Services:• Data Center

Services • Thermal

Assessment Services

Management

Key enablers

HP StorageWorks product portfolio Serv

ices &

Solu

tions

MSA Family

Storage servers (NAS) & storage

arrays

EVA Family

XP Family

Software

ProLiant Storage Servers

StorageWorks Clustered Gateway

StorageWorks All-in-One

Tape & disk-based

data protection

EML E-Series

MSL seriesStandalone

drives & autoloadersMedia

ESL E-Series

Virtual Library

Systems

Infrastructure

Multi-protocol services ISCSI/FCIP

SANSAN

HP Switches and Directors

Embedded switches

Host Bus Adaptors

ProLiant Data

Protection Storage Server

MSA Family

• Storage resource management

• StorageWorks device management

• Data protection & recovery• Replication

• Data archive• Data migration

From Asset to Information ManagementIncreasing the business value of IT

Customer focus area

Busi

ness

Valu

e o

f IT

Agility

Information Mgmt

• Turning data into information

• Improving application performance

• Addressing long-term retention and compliance requirements

Efficiency

Asset Management• Control of a

complex environment

• Improved asset utilization

Stability Provide a stable, extensible foundation • Networke

d storage