News release

Compaq Simplifies Corporate Computing with New PC Management Services

Compaq Computer Corporation (NYSE: CPQ) today announced a suite of services that simplify the complexity of managing today's corporate computing environment. Compaq's Software Image Management Services (SIMS) shifts the burden of resource-intensive PC Management tasks from the customer's internal IT (Information Technology) staff to Compaq — freeing companies to focus on core business operations, yet leaving them in control.

Compaq's SIMS give customers complete control over their software image — which consists of the operating system, industry standard and custom applications, specialized settings, and drivers. SIMS, a highly configurable offering, allows customers to supplement specific needs in the planning, development, qualification and deployment of their PC disk images, or create an end-to-end solution for image management. "Many of our customers spend a significant amount of time and human resource in the development and qualification of PC disk images," said Ed Reynolds, director of PC Services at Compaq. "SIMS lets them offload some of the resource-intensive work to Compaq, while increasing the reliability of the resulting systems and shaving months off the deployment of new PC technology."

Previously, software image management was tied to the purchase of new hardware and limited to the creation, storage, and maintenance for companies within the U.S. Now, SIMS reaches major worldwide markets, and can be purchased with or without Compaq hardware. This program enables customers to spend more time managing their businesses and less time managing their PCs. By simplifying the management process, SIMS allows images to be rapidly migrated to new platforms with ease, and enterprise-wide upgrades are no longer a major undertaking. Hardware and software transitions are simplified, while improved system stability, reduced costs and improved productivity are added benefits.

"It's hard to overstate the impact of Software Image Management Services on Classroom 2000's ambitious schedule," said Jimmy Stewart, director of Services, Classroom 2000 Project for DENI (Department of Education, Northern Ireland). "In 90 percent of the cases, teachers could just pull their machines from the boxes and start operating them right away." Other Compaq customers have achieved similar results. "Affordability, serviceability and stability were major considerations in selecting Compaq products," said Stephen Grist, manager - Group Infrastructure Programme, Shell Services International Limited. "The extra value we've received from Compaq is Software Image Management Services, where Compaq designed, fully tested, and loaded our customized software image. We can depend on Compaq shipping us products that work right out of the box."

Compaq is responding to the increasing needs of IT in large and mid-tier markets. Managers are looking for ways to simplify PC management, so they can concentrate scarce IT resources on higher value business activities. Therefore, businesses are selectively outsourcing IT functions, with predictions for significant increases over time (Dataquest, March 2000). Compaq, in its commitment to provide a total image lifecycle solution, is well positioned to extend its reach by offering the following components within the Software Image Management Services:

• Image Design- Compaq consults with the customer and recommends a design based on the customer's functional needs. Requirements can include the integration of Compaq and third-party components and applications into a software image, as well as the creation of a specialized restore CD.
• Image Qualification- Compaq reviews and tests a customer's selected image and configuration, including Compaq and third-party hardware options. Problems in an existing image are identified, necessary changes are made, and performance is enhanced.
• Image Modification- Customers may initiate changes as their needs and manufacturer specifications change; Compaq updates the image to reflect new standards.
• Image Replication(Compaq Hardware Purchase Required) - Customer's products are preloaded with their custom images, configured with unique user settings, and the Restore CD is replicated at the customer's request.
• Proactive Image Monitoring- Compaq proactively monitors for manufacturer specification changes and driver updates/patches. Changes are incorporated into customer's configuration, tested and analyzed, then implemented upon customer approval.
• Image Technology Assessment(Non-Disclosure Agreement required) - Compaq helps plan for future technology with previews to the Compaq roadmap. This in-depth assessment reviews the customer's current image strategy, helps plan the next technology migration, qualifies the customer's image on new systems before product announcement, and updates the customer in light of future products and strategic transition points.
• On-site Engineering Resources- Compaq makes onsite engineering resources available for quick changes/fixes and software image tuning at the customer's request.

Only Compaq offers a worldwide, comprehensive suite of image management solutions, available to all customers, with or without a product purchase.

Additional information on SIMS can be found at http://www.compaq.com/solutions/pcsolutions/image_mgmt.html.