CARLY FIORINA
COMDEX 2002
LAS VEGAS, NEVADA
NOVEMBER, 2002
"HP IS EVERYWHERE"
© Copyright 2002 Hewlett-Packard Development Company, L.P
All rights reserved. Do not use without written permission from HP.
Good morning.
What you just saw is an ad that will begin running this morning.
We call this ad Anthem.
It's part of a campaign that will feature the stories of our customers
and how they use our technology.
And all of these customers that we will feature have one thing in common.
Every one of them was told that what they hoped to accomplish was impossible.
FedEx was told they'd never make an overnight delivery service work.
Amazon was told they'd never make online retailing work.
BMW's Formula One team was told they'd never make a car that rivals Ferrari.
In every single case, they proved the skeptics wrong.
And in every single case, HP was there.
Why is this the face we have chosen to show the world?
Because it's about everything we can achieve, working together.
It's an affirmation of our belief that progress is not made by the cynics
and the doubters, it is made by those who believe that everything is possible.
Now is not the easiest time for the IT industry, or around the world,
for that matter.
But in these uncertain times, it is our capacity to look ahead, our capacity
to build a better future, our capacity to develop practical solutions
that make our work all the more essential.
And ultimately, we achieve what we achieve because we are optimists;
because we believe challenges yield to solutions; because we have confidence
we can invent the future.
At HP, it's what our collaboration with customers is all about.
It's what the work in our labs is all about.
It's what the journey of our company these past three years has been
about.
At HP, we recognize that technology itself is not the end, but the means
to an end of something far greater.
Every year, we come here to show off the latest and greatest in our industry.
Comdex has always been the world's best stage for the things this industry
makes - for the inventions and the discoveries that brilliant minds and
brilliant companies have created.
But the truth is - as Anthem shows — the real storyline of this
industry is not being written on the show floor, but in the very things
we can't display on the show floor: not just in what we are making as
an industry, but in what we are making possible for consumers, for businesses,
for governments, and for customers around the world.
Which is why, even though we come back to Las Vegas this year maybe with
more on our minds than in years past - not only war and recession and
terror and corporate scandal, but fear perhaps that the very wheels of
innovation in our industry have slowed in response to a less certain world
- I come to this conference more hopeful about our future than I have
ever been.
Because while the demand for technology for its own sake may be down,
the need for technology that solves real human and business problems is
stronger than it has ever been.
As IT professionals, it's easy to forget the things that IT makes possible.
Frankly, you might think a lot more things would be a lot more possible
if your technology worked better together, if your components talked better
to one another, if the system you spent millions of dollars on five years
ago worked in a new century.
While we all know that the latest and greatest are exciting and new,
it's not what you need most from this conference or from this industry.
What you've told us is that while point products are cool, what you need
most are solutions; what you need is a partner who can help you make all
the pieces you've already got work better together; who can manage your
systems seamlessly across global networks; and who comes to the table
with the depth and breadth and product line to address all your needs.
Three years ago, I came to this stage and told you that we were setting
out on a process to preserve what is best about HP and reinvent the rest.
That reinvention reached its most public expression with our merger last
spring.
We think we return to this stage today as a more complete partner for
our clients and our customers - with the capability to serve any institution,
any consumer, any community.
Let me tell you a little bit about the new HP.
HP is 140,000 strong, with employees working in every time zone on earth.
It makes conference calls a challenge - but for a company that does nearly
60% of its business outside the United States, we think that having capabilities
in 160 countries, doing business in 43 currencies, and 15 languages is
an asset.
The merger has improved our market position, because we can offer our
customers more.
We think it's an advantage for those who use our services that we are
now the market leader in supercomputing, in management software, in servers
--Windows and UNIX and Linux-- in storage, in workstations, in imaging
and printing, in laptops - running neck and neck with Dell on PCs, and
close behind IBM on IT services.
Our portfolio runs from desktop to print shop, from palmtop to Nonstop,
from printers that sell for $49.99 to multi-million dollar commercial
systems.
And we think the depth and breadth of our portfolio not only serves our
customer’s needs and serves our customer base; we think it is reflected
in our customer base.
Today, more than a billion people around the world use HP technology
every day.
That means that if you made a city of all of our customers, it would be
about 2,100 times larger than Las Vegas. If you made a country, it would
be the third largest country on earth.
We're in a lot of places that you see every day.
The new HP powers more than 100 stock and commodity exchanges, including
14 of the world's largest. We support 95 percent of the world's securities
transactions.
We help process two out of every three credit card transactions worldwide
and three out of every four electronic funds transfers.We handle 80 percent
of the mobile billing and customer care traffic in Europe and Asia. And,
we help control 65 percent of the world's energy infrastructure.
As systems supplier for companies as diverse as Adidas, Kellogg's, Starbucks,
Levis, Daimler Chrysler, Verizon, AOL, Nokia, Home Depot, and GlaxoWellcome,
we're also in a lot of places that you may not realize.
Because we supply servers to Sony and power Nike's supply chain, we're
there when you hit your alarm clock in the morning and when you put on
your running shoes.
In similar ways, we're there in the cereal that you pour, the coffee that
you drink, the jeans that you wear, the car that you drive. We're there
in the back office when you call your stockbroker, when you check your
email, when you order books online, or call a friend on your cell phone.
We're there in the package you send overnight, the hammer you buy, the
prescription you pick up at the pharmacist, and the plane ticket you purchase
online. We're there in the tires that get you home - and we'll be there
tonight when you go back to your room and check game scores on ESPN.com.
We feel privileged to have powered up the New York Stock Exchange after
September 11th, to have supplied printers to the new government in Afghanistan
after the Taliban fell, to help screen airport luggage for harmful objects
- and to work with the Fire Department of New York to help train new recruits.
And we also feel good about our ability to continue to innovate for our
customers.
With 35,000 pre-sales and sales representatives... and 65,000 service
and support professionals... which is nearly twenty-five times the number
of people in this room today — we have more feet on the street than
ever before.
We feel fortunate to be able to do all this while maintaining the intellectual
property portfolio that justifies our logo.
We have today 16,000 patents in all - including three new patents we
generate every working day – and those patents span every part of
the technology puzzle, from print technology to molecular computing. In
fact, that $49.99 printer that I mentioned a moment ago has upwards of
100 patents associated with it. Proving that low-cost doesn’t always
mean low-tech.
Those 16,000 patents represent $4 billion in annual R&D investment.
And we believe it's vitally important that we maintain this level of R&D
investment and commitment to keep the wheels of innovation and invention
in motion.
Finally, being the number one partner for Microsoft, Intel, Accenture,
PeopleSoft, BEA, Oracle, Siebel, CGEY, BearingPoint — help us fulfill
what we believe is one of the most important roles for HP — to galvanize
all those partners, and bring the full power of this industry to our customers
and to your company.
Now, that's the new HP in a nutshell.
And six months after we closed our merger, we feel good about the progress
we've made. But we know the ultimate arbiter of success is not what we
can do for our company, but in what we can do for our customers.
We know that if consumers don't have a good experience using our technology,
interacting with our people and our products, they won't buy it again.
Likewise, we know that if companies cannot see a clear linkage between
return on technology investment and business priorities and business productivity,
they simply won't make the investment.
I think if you look beyond the distractions of our day, you will actually
see a new breed of company emerging: companies that are making the tough
choices, streamlining, but not backing off their core purpose. And so
I want to focus the rest of our time on what these kinds of organizations
are doing.Because they are solving real, and often impossible-seeming
problems. From the tiniest to the most massive in scale, let's look at
some of the ways they are using technology to improve business, enhance
life, and build our future.
We'll start really small ... with scientists who are studying complex
interactions at the molecular level.
Say hello to the Terascale Computing System, or TCS. It’s humming
in a building near Carnegie Mellon University at the Pittsburgh Supercomputing
Center.
Using the world's largest public computing system, scientists are creating
simulations of molecular activity. What hangs in the balance of this research
are better designs for artificial organs, and cures and treatments for
diseases such as diabetes and glaucoma.
To put this in perspective: the floor space of the TCS is about the size
of an NBA basketball court. It requires 14 miles of cable. It has the
computing power to perform six trillion calculations every second —
this is roughly equivalent to having 10,000 PCs hooked-up together and
working on the same problem. And the TCS runs on HP server technology.
So this is a case where technology is making something very new, possible.
Scientists all over the world can tap into this massive public resource
to perform research that will inform everything from disease prevention
to disease cure, from storm-forecasting to understanding the Earth's magnetic
fields. Most of the research is focused on critical questions that are
ten or twenty years from being answered.
Now, let's move from a place defined by long-term potential, to a place
defined by speed.
A Formula One race might not top the list of critical problems technology
needs to solve. But please don't tell that to the BMW Williams Formula
One team. Their sport uses more advanced technology than any other sport.
Two years ago, the team was stuck in the mid-ranks of the Grand Prix
racing standings. So they assembled the best combination of technology
and people they could find. They mobilized a team of engineers - located
in response centers from Germany to England to wherever a race was being
held on any given day.
For every race, they set up a sort-of mini-data center replete with HP
servers, HP storage, HP management software, HP imaging and printing technology,
and HP laptops - all managed by HP services pros. During the season, the
team uses the technology to simulate track conditions, revisit past race
data, and to make micro-adjustments to the car to compensate for conditions
in real time during the race.Off-season, the systems are used to run the
latest computer-aided engineering software for race car chassis, suspension
and engine design.
The systems, like the cars, cannot fail. While the car screams around
that track at more than 200 miles per hour, these HP systems - and HP
support engineers - ensure that the car performs to its maximum capacity,
while transacting millions of bits of data every second, without requiring
the driver to lose a millisecond of attention - or a millisecond of speed.
Like Formula One driver Juan Pablo Montoya says, "It's about having
the ultimate technology and the ultimate machine."
Thus the marriage between man and machine is beginning to pay off. The
first time we worked with BMW – which was at the 2000 British Grand
Prix -- Montoya broke the course record. This year, the BMW Formula One
team is moving up the ranks and edging closer to its rival, Ferrari. The
team is now focusing its technology and its sites on winning in 2003.
Let's move from the racetrack, and see how technology can solve problems
that have critical implications for more day-to-day business.
Simply replacing a physical process with a digital process often unlocks
business opportunity in profound ways. OK, now, it may be a little strange
to use the words "profound" and "beer" in the same
sentence. But as it turns out, Coors Brewing Company recently figured
out that they could significantly streamline the production of point-of-purchase
sales materials by going digital... and they could sell a lot more beer.
It used to be that if you were a bar in San Francisco wanted to advertise
a special on Coors pints during a home game, they bar owners often have
to hand-letter a sign. Today, Coors has replaced that clumsy physical
process with a digital one. They've worked with HP to create a secure
portal that lets establishments access templates and sanctioned logos
to customize promotional materials, and then either print them locally,
or transmit them to a centralized printing production center.
It's bringing the commercial printing industry into the digital age.
For Coors, it's technology that helps them protect the brand, and sell
more beer. For Coors partners, it's a pragmatic solution that improves
their marketing.
Now, let's scale up to the realm of imagination.
Almost every one of us has seen the movie SHREK. What the DreamWorks
team wanted to achieve with SHREK was truly pushing the boundaries of
what's possible. They had an aggressive movie release deadline.They had
a proprietary animation application. They had workstations that weren't
performing fast enough.
And, they had Jeffrey Katzenberg - who is passionate about reinventing
the art form of animation with every movie he produces. They were also
looking for new partners who could help them meet their artistic and technical
challenges.
So with no time to waste, they called HP. We'd been testing a workstation
that we thought might be tweaked to run their proprietary software, but
we weren't sure it was quite ready for primetime.
But they pushed us - and in seven intense days, we managed to squeeze
four times better performance out of the system than out of their previous
system.
The DreamWorks engineers stopped avoiding Jeffrey in the hallway. They
ordered more workstations, cranked out the movie, hit their deadline -
and won an Academy Award for best animated feature film.
Eventually, Spirit: Stallion of the Cimarron, became the first all-Linux
animated film ever created.
Now, what's so inspiring about technology's role in this example, are
the business returns. DreamWorks saved costs in overtime, hardware, and
energy consumption.
They now enjoy forty times the performance, in the same physical footprint,
for less money, than they did with their earlier set-up.
By the way, if you go to the HP booth, and I hope you will, you can insert
yourself into one of these DreamWorks movies. Stop by for a visit.
Now, let's move to the realm of entire communities, and solving problems
that span the globe.
HP is a company that has never thought conventionally about its role
in the world.
We've always believed that with global reach comes global responsibility.
That's especially true now... we have seen how technology can be used
to empower people and create opportunities that have never existed before.
More than 40 years ago, HP pioneered the idea of giving its employees
paid time off each month to do community service work. We continue that
practice to this day.
But when it came to the developing world, HP chose a more traditional
route, committing either money or resources to help solve problems. Until
we recently realized that by limiting ourselves in that way, we were withholding
the very assets that make corporations most relevant - namely, our ability
to set goals, to manage projects, and to invent locally appropriate technology
solutions.
So today, we are committing teams of senior-level employees in communities
around the world for up to 3 years, to listen and learn from local communities,
to help citizens there set goals, to strike-up partnerships including
Non-Governmental Organizations and local governments and businesses, and
then work together to achieve those goals.
We have programs like these in places like South Africa, and in Andrha
Pradesh, India, where a team for example is working to improve literacy,
create jobs, and expand government services. Ideally, the learning that
we obtain in these communities can then be applied in others around the
world.
When you go to the HP booth, you'll see an invention inspired by a real
problem in another Indian community. It's a solar-powered HP printer and
digital camera, contained in a portable piece of luggage.
In India, every citizen must carry a photo ID. The problem is, in many
regions people have to lose two days of work traveling to photography
studios, and photos are expensive. But with this camera and printer that
are powered by a small solar panel, street photographers don't have to
worry about relying on precious disposable batteries, or an unreliable
power grid. They purchase the pack at cost.
They charge 50 rupees - about a buck - to take someone's picture and print
it on the spot. The pack quickly pays for itself, and becomes a sustainable
business for that photographer.
We think this is where invention is going. When you look at who uses
technology today, you realize it only encompasses 10 percent of the world’s
population. And if we look beyond the next few quarters, as a company
interested in generating growth for the long term, we must acknowledge
the fact that many of the discoveries, talent, ideas, and innovations
of the future are not going to come from that 10 percent alone - but from
the other 90 percent, from developing nations and new markets around the
world.
It's not hard to imagine extending this kind of technology solution to
power things like home water purification systems, and TVs, and lamps
that can be used after a village's electricity is powered-down for the
night. And teams in our labs and teams of our partners are exploring these
kinds of opportunities as we speak.
I hope that through glimpses into what these organizations are achieving
with technology, you're starting to see that HP -- with a new depth, a
renewed dedication to world-class engineering, and a new reach across
more than one billion customers -- is a partner that brings technology
to so many different facets of business and life. The companies I've talked
about today are focused not on the technology itself, but on what the
technology can make possible for them.
Because the real agenda in today's world is a customer agenda.
So where do we go from here? You have to ask what's important now, and
who is committed to delivering it.
In the last few years, I have stood on this very stage and talked about
HP's vision of a world where technology is ultimately more human, more
accessible, more essential - and more reliable, more affordable, and more
agile. It's a world where the success of technology is measured not in
how much it invades our lives and our businesses, but in how it supports
all the ways we live and work.
It's a world where technology does not discriminate between the haves
and have-nots, between enterprises and consumers, between big businesses
and small, between back office and desktop. Every part of the technology
landscape needs to be taken into account.
I frankly think the last thing customers need today are time machines
or binoculars or more breathless hype about multi-billion dollar bets
on the next big tech thing. As business customers, you have made your
agenda clear: What you need is straight talk, practical solutions, and
partners you can trust.
You want to lower your operating costs, you want to lower your acquisition
costs, you want the freedom to incorporate the best technology and services
from anyone, you want infrastructure that will flex and change and adapt
to your business requirements. You want a tight link between your business
and your IT systems.
You want immediate information and insight so that you can take intelligent
action.
And that requires evolving your existing infrastructure -- the one you've
already built, and invested in -- into a far more adaptive infrastructure.
Because a truly adaptive infrastructure is one where your resources satisfy
your demands exactly, every second of the day. That's when you know you're
getting the most out of your infrastructure-the most out of your investment.
So, while IBM is placing $10 billion bets on the "final chapter"
of e-business, and saying that you're at a crossroads that will seal the
future fate of your business forever...at HP, we don't see it that way.
The path to the future is about taking one step at a time ... we see
these times as a continuum, not a crossroads. We are continuing down a
path that we have been on for quite some time. And every step of the way,
we're focused on redefining the value proposition for information technology
— improving the value of information technology, the total return
on your IT investments.
First, we think it's about lowering your cost of acquiring technology.
Which is why you'll see HP continue to invest heavily to ensure that our
product line is the most modular and most standards-based in the industry
— because standards and modular systems design give you choice and
flexibility - and improve your overall cost of ownership.
You'll see us adhere to an engineering paradigm that is firmly rooted
in making a deeply diverse technology landscape work, and work better.
We are genuinely open, not a company masquerading as being open to get
you to buy more of its proprietary offering.
It's why you'll see us invest to extend our lead in Windows, and UNIX
and Linux platforms, and in modular architectures like blades and cell
boards. It's why we will lead advancement in dot-Net and also J2EE in
the emerging web-services world, because our customers say it is what
they want, and need, to create an infrastructure that adapts to business
- in real time.
Second, it's about lowering technology operating costs, by making it
easier for you to manage the assets you already have. Which is why you'll
see us continue to invest big in virtualization-to achieve better capacity
utilization — in servers, in storage, across the data center. It's
why you'll see that our approach to RoIT includes PCs, handhelds, wireless
devices, and printing infrastructure as well as servers and storage and
data centers -- because your entire infrastructure must be adaptive, in
order for you to fully capitalize on your investment.
Third, it's about skillfully managing the infrastructure from end-to-end.
That's why we have put more investment into OpenView. OpenView is the
console that lets you see in one view all of the resources in your IT
environment — from end-to-end - inside and outside — so you
know how to shift resources to best handle the demands of business. It's
the foundation and the key to building an adaptive infrastructure that
truly flexes with changes in business activity.
Fourth, it's about providing the services that fundamentally improve
your return on investment. We're focusing all 65,000 members of our services
organization on being the industry's experts on adaptive infrastructure.
We're pioneering new methodologies and new services in IT consolidation...in
optimizing heterogeneous environments... in mission-critical services...
in enterprise Microsoft... in on-demand infrastructure solutions... and
in optimizing the infrastructure all the way out to mobile solutions and
handheld devices.
And ultimately, it's about freedom of choice. One of the key reasons
HP merged with Compaq was to combine enough of the key elements of an
enterprise infrastructure under one roof -- so that we could, quite literally,
speed implementation for our customers. We now have within our scope the
leadership products and technologies required to actually redefine the
IT value proposition for business... to actually deliver the best return
on information technology.
But we do not wish to control you. Or lock you in. Or limit your choices.
In fact, the essential difference between HP and our competition is that
-- because of our engineering orientation and our DNA as a company --
we believe partnership is our lifeblood: our partnership with you, and
our partnership with others in the industry who serve you.
We believe it's our job to ensure that you always have access to the
best talent and innovation. In some cases, it will be our talent and innovation,
specifically in the places where we believe we can make a valued contribution,
in areas like management, interoperability and utilization software and
services... areas like computing utility and grid technologies... imaging
technologies... mobility...
secure and trusted systems... and consumer connectivity. In other cases,
we'll work with valued partners and bring their talent and innovation
to customers.
Now, while I've focused so far on our strategy to serve everyone from
the micro-business to the Fortune 10, we are also the largest consumer
technology company in the world. Our strategy in the consumer market is
simple: We asked, What does 'productivity' and 'return on IT' mean for
consumers? And they told us that they know they've gotten a great return
when their experience using technology is simple and rewarding. Simple
to buy, simple to own, simple to use. Rewarding because it’s fun,
because it helps you communicate, because it helps you be more productive.
So simple and reliable are our strategy. It's helped us continue to develop
technology that works for you, rather than the other way around. We're
focused on delivering a consumer technology experience like the one you
see here where simplicity, and interoperability, and connectivity are
a given.
Where information is increasingly personalized and easily shared. Where
products and technologies are a personal reflection of you ... and the
varied lifestyles of consumers. And these technologies are affordable
to as many people as possible.
Now this strategy is what inspires an invention like this iPAQ. There
are very few things are as distinctly personal, as individual, as your
fingerprint — and this device incorporates technology which requires
you to touch the sensor and be recognized by your fingerprint, before
it will allow you to access the data locked inside. I think this is the
ultimate stocking stuffer, don't you?
A focus on simple and rewarding experiences is also inspiring inventions
like our TabletPC, which extends the functionality of a notebook, with
handwriting and speech technologies. Again, it's technology that makes
it possible for us to do things we weren't able to do before...like write
a spontaneous note whenever the mood strikes, and email it in your handwriting.
Let me show you...Reggie, can you come up and help with me with this for
a second, so everyone can see?
How many of you were at Bill Gates keynote last night? Good. I believe
Steve Balmer is somewhere here in the audience, so let’s send him
a note: “Steve: Stop playing Mech Assault during my speech. Thanks…Carly.”
Now we will email that to Steve…I don’t imagine it’ll
have much impact on him.
I started today by saying that I have every reason to be hopeful about
the prospects for our industry, and I gave you a few examples of the ways
customers are using technology today.
If we can get beyond the doom and gloom headlines that we've grown accustomed
to the past few years -- we see a world where technology is more ubiquitous,
more accepted, more purposeful, more promising and driving more change
than it ever has before.
From the furthest reaches of space to the familiar corners of our cities,
technology is making everything possible.
[run CrimeFighters ad]
That last commercial sort of brings the notion of drag and drop to a
whole new level!
At HP, the idea that we can help make more things more possible for more
people in more places represents our highest aspirations -- as well as
our most practical goals as a company and as a partner. It is at the intersection
of practice and promise that you will find today's HP.
Forty years ago, last month, in Washington, DC, the first office was
opened for the project that eventually produced the ARPANET. One of the
scientists of that project decorated his office with two pictures. One
was a picture of the moon; the other was an empty frame. He used to tell
people that soon, the solutions he was working on would fill that frame
with a picture from the other side of the moon.
Today, forty years later, that frame is filled with more than he could
have ever imagined. And frankly, forty years from now, it will be filled
with things we can't imagine.
But one thing we know for sure: Progress is not made by the cynics or
the doubters; progress is made by those who believe everything is possible.
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