News release

HP Introduces Next Generation of Utility Pricing for HP Superdome Servers

Offering Provides Always-available Capacity with Payments Based on Percentage of Each CPU's Utilization

HP (NYSE:HPQ) today announced another first in pay-per-use utility pricing by offering automated metering technology that can measure the percent utilization of each central processing unit (CPU) on HP Superdome servers.

With this offering, customers are charged for actual usage on a monthly basis, creating a direct link between IT costs and business demand. Businesses with seasonal activity or unexpected new business opportunities will have capacity available and will only pay for the IT power they need, when they need it.

This offers significant advantages to customers during slow periods as they will not pay for processing they do not utilize. In addition, customers do not have to risk not having additional processors instantly available during periods of high activity.

Delivered through HP Financial Services, pay per use is a part of HP's suite of On Demand solutions, which provides customers with reserve capacity, instant availability and payments based on actual metered usage.

HP was the first company with on-demand, usage-based active CPU metering and pricing at the HP Superdome server launch in September 2000. HP remains the only technology company to offer true pay-per-use capacity metering on UNIX® servers.

"Many IT companies talk about offering on-demand solutions and having customers pay for IT as a utility, but only HP delivers with its unique metering technology," said Irv Rothman, president and chief executive officer, HP Financial Services. "This gives customers the financial flexibility they need to respond promptly and effectively to cyclical changes in demand and directly align IT costs with the revenue the technology helps to generate. Today's announcement is more proof of HP's commitment to offer customers flexible capacity and cost structures to minimize risks today -- and maximize business agility for tomorrow's rapidly changing needs."

HP's metering technology reads the actual utilization of each CPU and charges an enterprise for the processing power they use. CPU utilization data is automatically collected, encrypted and securely transmitted to HP's billing engine.

Because the equipment devices and automated metering technology physically reside at the customer site, IT managers have both control over their IT investments and flexibility to adapt to changing business needs. This is in direct contrast with vendors that take a less flexible and highly prescriptive approach with their on-demand offerings.

HP's pay-per-use offering is currently available in North America and Europe, Middle East, and Africa and is expected to launch in Asia Pacific shortly.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

UNIX is a registered trademark of the Open Group.