News release

Compaq Announces Computing on Demand

Compaq Computer Corporation (NYSE: CPQ) today launched a major strategic initiative to change the way technology and services are provided to enterprise customers around the globe. Called Computing on Demand, the initiative is a set of new solutions that give customers a broad range of computing resources when they need them, where they need them, and at a predictable price and performance level—similar to buying IT as a utility.

Computing on Demand is a prime example of the company's increased focus on IT services and solutions. Computing on Demand unites Compaq's strengths in technology—servers, storage, wireless handheld devices, and PCs—with Compaq Global Services architecture, management, and support capabilities. Enterprise customers will now have greater flexibility and control over the design, deployment and management, and cost of their IT infrastructure.

"Customers want IT to be delivered in new and more flexible ways," said Peter Blackmore, executive vice president, Sales and Services, Compaq Computer Corporation. "They want to leverage their IT infrastructure to become more productive and profitable while reducing risk and increasing cost efficiency. This is the essence of Computing on Demand—offering customers the control and flexibility to adjust their computing capacity when they need to. Leading global companies such as Ericsson are already benefiting from this new way of managing their IT resources."

Computing on Demand is a suite of offerings—ranging from standard building blocks to fully customized outsourcing solutions—that can be tailored to best meet the customers' unique needs. Most important, the solutions allow customers to focus on their core business, while the experts at Compaq attend to their IT requirements. Combined with flexible leasing and financing options, Computing on Demand solutions provide customers with the most advanced IT infrastructure at affordable prices.

Acxiom Corporation, the Richardson (Texas) Independent School District, and Blue Cross Blue Shield of Michigan are already using elements of the initiative.

"When we need storage capacity to address a critical customer project, that capacity is available instantly—on our site—through the Storage Utility approach from Compaq," said Greg Cherry, technical systems leader, Services Division, Acxiom Corporation. "We have more than 12 terabytes of Compaq StorageWorks capacity today, and can increase it at precisely the moment it's needed in a flexible, pay-as-you-grow method."

"Compaq is providing a complete lifecycle solution to reduce the complexity of managing 16,000 desktop and laptop systems throughout our schools and administrative offices," said Daniel New, executive director of technology program management for the Richardson (Texas) Independent School District. "Compaq installs fully integrated PC systems preloaded with our standard software image and provides ongoing maintenance, technical support, and a dedicated project manager. With one partner to oversee all this, we can focus on evaluating and delivering state-of-the-art education-related services to the schools." (See related news release, "Texas School District Awards Compaq Total Solution Contract.")

"Compaq fit our requirement of being a long-term partner. That's what we wanted, a service partner, not a service vendor," said David Doney, director, IS Customer Service for Blue Cross Blue Shield of Michigan. "Compaq is providing a complete lifecycle solution including tailored services to manage and deploy desktop computing assets at BCBSM locations throughout Michigan. In addition, Compaq's Operations Management Center provides customized enterprise help desk support."

Computing on Demand Solutions

Computing on Demand includes a rich set of offerings—from basic server and storage on demand and on site with flexible financing options—to a complete pay-per-unit computing model based on application usage. Computing on Demand can meet the needs of customers ranging from the largest enterprises to small and medium businesses (SMBs) and service providers (SPs).

Capacity on Demand and Server on Demand

For its AlphaServer™ and NonStop™ Himalaya™ high-performance servers, Compaq offers Capacity on Demand—a powerful way to avoid the risk of unpredictable or rapidly increasing computing demand. Capacity on Demand allows customers to have reserve computing power installed and ready to put into service instantly, without any disruptions to systems or applications. In addition, Compaq will extend its on-demand capabilities to its market-leading Compaq ProLiant™ industry standard servers. Compaq will implement Server on Demand in the third quarter across its full server product range.

On-Demand Storage

The Compaq Private Storage Utility and Compaq Storage on Demand ease the burden of storage management and provide a simple path to meet unanticipated storage requirements. Currently available in North America and Europe, Compaq Private Storage Utility delivers storage that is purchased like a utility on a "pay-as-you-grow" basis.

Access Utility

Compaq's Access Utility combines global, multi-vendor service and support with hardware, software, and flexible financing options. In addition to the custom PC Utility currently on the market, Compaq is introducing a new pre-packaged utility with customizable options. This new service will offer a choice of four state-of-the-art desktop/portable configurations combined with Microsoft Windows 2000 Professional and Office XP software, 24x7 help center support, installation, technology refresh every 36 months, program management, and asset reporting. Additional features can be added to the base service, such as asset recovery, backup/restore, desk-side support, data migration, custom image loading, and enhanced hardware support.

Additional information may be found at the Compaq Global Services Web site at http://www.compaq.com/services/.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.