BUSINESS OVERVIEW 

HP has announced that 40 European customers have successfully migrated in the past year from legacy mainframe systems to HP Integrity servers, achieving data center cost savings of up to 70 percent (1). Increasingly, companies are migrating from mainframes to HP Integrity servers for mission-critical IT operations in an effort to reduce high hardware operating and software licensing costs. HP expects to help migrate an additional 125 European companies in the next 12 months. Read more

HP?s continued strong market share position is further evidence of customer confidence in HP Integrity servers as an alternative to mainframes. According to IDC, HP tied for the top position in revenue for the Europe, Middle East and Africa (EMEA) Enterprise server market, securing 32.7 percent market share as measured in the second quarter of 2008(2). HP Integrity servers represented the majority of HP?s Business Critical Systems revenue in EMEA, with 78 percent share in the third quarter of fiscal year 2008(3). 

? Customers are increasingly fed up with the rising costs and inflexibility of mainframe systems due to the resulting negative impact on their businesses,? said Ruud Vrolijk, vice president and general manager, Business Critical Systems ? EMEA, HP. ?HP helps customers meet future needs by shedding unnecessary costs and modernizing their legacy applications. HP also promotes better investment protection through its open, modular HP Integrity server solutions that are much more economical and flexible in adapting to changes in a business.?  

Improved flexibility with reduced costs

Companies of different sizes and from different industries gain quantifiable results by migrating to HP Integrity systems. HP helped Public Security Police (PSP), Portugal, migrate from its existing IBM mainframe to HP Integrity to run its Strategic System Information. ?PSP?s challenge was to bring down the costs of the technology platform,? said Maria Eduarda Lopes, IT director, PSP. ?The open platform significantly lowers total cost of ownership, while ensuring high flexibility and reduced maintenance time.?

Additional customers in the EMEA region who migrated from mainframe systems to HP Integrity to reduce data center costs and improve flexibility include: Amadeus, Banco Espirito, Continental AG, Mashreqbank and Portuguese Air Force.

Rapid adoption of Intel Itanium processor-based platforms Particularly in EMEA?s financial and telecom sectors, Intel is seeing companies move away from legacy mainframe environments and choosing more flexible and reliable Intel Itanium processor-based solutions like HP Integrity systems. The results are reduced IT costs and a data center environment that is highly optimized for mission-critical operations designed to prepare organizations to meet future needs.

?The Intel Itanium processor, along with our robust processor roadmap, is well positioned as a mainframe replacement solution for mission-critical applications such as enterprise resource planning, customer relationship management and business intelligence,? said Joachim Aertebjerg, server business manager ? EMEA, Intel. ?The fast adoption of HP Integrity servers and migration from legacy mainframe environments are good validation of Itanium?s ability to meet the rising requirements of performance-demanding industries. Together with members of the IT industry like HP, Intel will continue to develop the Itanium platform with new innovations and process technology well into the future.?

HP has established ?HP Mainframe Migrations Centres of Excellence? in Europe to address the increasing growth of the mainframe migration business and to ensure execution excellence in customers? migration efforts. The flagship centre is located in Madrid, Spain, with a second centre in Bucharest, Romania. Using specialised knowledge and technical expertise, the centres render assistance to the local EMEA country teams throughout the stages of customer engagement, delivery process and advancement phase, thereby facilitating best practices for mainframe migrations.

HP Integrity innovations continue to grow

In addition to HP?s success with transitioning customers to Integrity servers, the product line itself has recently expanded to include these innovations:

- New operating environments for HP-UX 11i v3 with built-in virtualization software to simplify and speed up customers? UNIX deployments and help reduce maintenance costs.

- QuickTransit for Solaris/SPARC-to-Linux/Itanium on HP Integrity servers helps users move enterprise applications from SPARC-based hardware to HP Integrity servers running HP-UX or Linux.

- HP Integrity BL870c ? the first four-socket HP Integrity server blade that combines support for mission-critical applications with the modular infrastructure and energy efficiency of HP BladeSystem. The server can save up to 25 percent in power usage.

- HP Insight Dynamics ? VSE ? provides the first integrated server management solution that allows customers to visualize, plan and change their physical and virtual resources on demand.

- HP Integrity NonStop BladeSystem is positioned as the first 24/7 fault-tolerant system that uses a blade server for maximum uptime and efficiency.

NOTE:

(1) Source: Alienan Mainframe Migration Case Studies: A Total Cost of Ownership Comparison, http://www.alinean.com/PDFs/Intel-Mainframe_Migration-TCOStudy.pdf

(2) Source: IDC EMEA Quarterly Server Tracker, 28 August 2008

(3) Source: HP Q3 FY08 Earnings

About HP

HP provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP is available at http://www.hp.com/.