News release

Compaq Extends Capacity on Demand to ProLiant Server Platform

Compaq Computer Corporation (NYSE: CPQ) today introduced new Computing on Demand capabilities for its industry-leading ProLiant™ server line, extending the powerful "pay-as-you-go" managed-services model across its entire server portfolio.

Capacity on Demand for ProLiant servers provides inventory management, planning assistance, near real-time consumption reporting, forecasting, and trend analysis to help customers maximize their IT systems. Compaq Global Services consultants build, run and manage the ProLiant solution—the first automated offering of its kind on an industry-standard server platform.

"Pre-configured ProLiant servers mean instant availability and faster time-to-solution to quickly respond to fluctuating business demand," said Peter Blackmore, executive vice president, Sales and Services for Compaq. "Backed by end-to-end global services capabilities, this enhanced management, 'pay-as-you-go' model provides customers with greater flexibility to manage their IT spending and decrease the need to carry excess inventory. It simplifies the customers' IT experience so they can focus on running their businesses."

The offering provides enterprise and service-provider customers an inventory of custom-configured ProLiant servers at their data-center sites, enabling activation in as little as eight hours to respond to unpredictable or rapidly increasing computing needs. Servers can be remotely activated, deployed and automatically replenished using the Compaq Insight Management Suite coupled with the Microsoft® .Net solution stack.

"Our partnership with Compaq allows us to continue innovation of managed solutions and integrate Compaq technology into our end-to-end business processes. We have worked with Compaq to help define rapid deployment and procurement requirements, and they understand that our needs include more than just the technical specifications of the server," said Martha Gilbertson, vice president of product management at leading hosting provider Digex. "Compaq's Capacity on Demand program has assisted in automating the process of initiating a new ProLiant server configuration, which involves inventory planning, procurement and deployment processes, to enable Digex to consistently meet our customers' rapid deployment requirements while simultaneously reducing our cost of operation."

A full range of program payment options—time-of-purchase, automated-delayed billing, monthly installments and leasing—is available to ensure flexibility for customers. The offering is currently available in the United States for the entire ProLiant server line, with a rollout in Europe expected in the fourth quarter of this year.

Future enhancements to the program currently are being piloted and will include a metered pay-for-use model, providing customers with dial-up and dial-down provisioning.

Compaq will work aggressively with its partner community to enhance their ability to sell and market the program and extend this capability to a broader market by year-end.

Also Available for NonStop Himalaya and AlphaServer

Today's announcement comes in addition to the already available Compaq Capacity on Demand offerings for NonStop™ Himalaya™ and Tru64™ UNIX and OpenVMS™ based AlphaServer™ systems. These programs enable rapid scale-up expansion without system or application disruption by utilizing pre-installed, pre-configured reserve capacity.

The NonStop Himalaya offering allows customers to rapidly scale-up their existing systems by activating reserve packages of processors, memory and storage resources for comprehensive protection without a large up-front investment.

Capacity on Demand programs also can be deployed on AlphaServer GS Series systems running the Tru64 UNIX or OpenVMS operating systems. The program provides reserve, pre-installed AlphaServer processors for instant system expansion. Compaq Global Services provides performance and capacity management services that complement the flexibility of the program.

More information about Compaq Capacity on Demand for ProLiant servers is available at http://www.compaq.com/products/servers/proliant/ondemand.

Company Background

Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.

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