News release

HP Enables Sprint to Pioneer Real-time Enterprise Environment, Demonstrates HP's Adaptive Enterprise Strategy

HP Zero Latency Enterprise Architecture Enables Sprint to Improve Services with Sprint-estimated Savings of More Than $10 million

HP (NYSE:HPQ) today announced at its Adaptive Enterprise launch that the company's Zero Latency Enterprise (ZLE) architecture has successfully enhanced Sprint's IT backbone, making it a real-time enterprise pioneer with cost savings from fraud detection, system availability and streamlined operations estimated in the millions of dollars.

The Sprint ZLE architecture is a total IT environment aimed at consolidating and integrating data across the enterprise, consisting of HP ProLiant, Alpha, HP 9000 and NonStop servers, HP Remote Data Facility, NonStop SQL, NonStop DOM for CORBA, HP consulting and integration services and leading partner solutions from SAS, Microstrategy and Fair Isaac.

HP's rich telecommunications experience and ongoing relationship with Sprint has resulted in one of the most advanced real-time enterprise operations in the telecommunications industry. Real-time data mining analytics and consolidation of call detail records (CDR) have fostered new, streamlined services, transforming Sprint into an adaptive enterprise with the flexibility and speed to address the evolving demands of today's marketplace.

"The ZLE architecture has become an essential tool for rapidly capitalizing on our data, cementing Sprint's position as a technology leader among our peers," said Kathryn Walker, senior vice president of network services, Sprint. "This architecture gives Sprint the ability to identify areas of fraud as they occur. We then can notify customers, saving them the headaches associated with abuse of their services. Also, because the operating system is designed to be fault tolerant, our customers' data is protected should there be a disruption, either natural or man-made. In addition, it enables Sprint to take basic data and present it to our customers in a meaningful way."

Key services Sprint has implemented through its ZLE architecture include:

• Fraud detection – Analysis of CDRs for suspicious patterns and instances of potential fraud. From the moment of detection to appropriate action, Sprint has narrowed the gap to within five minutes. Losses due to fraud have been reduced by several million dollars per year.
• Network availability – Analysis of alarm patterns to quickly identify potential hardware failures before they become widespread. In the past four years ZLE has been in production, Sprint has experienced no unplanned outages. A single outage could cost Sprint more than $10 million.
• Enhanced customer service – Ability to keep CDR data online as far back as 160 days, an increase from previous backlogs of 30 days and 90 days, for improved customer service at call centers. The ability to access more CDR data more rapidly enables Sprint to better contest billing disputes for a dramatic reduction in credit compensation.
• Patriot Act compliance – Means to instantly notify federal authorities of calls placed to numbers on the FBI Watchers list. With ZLE, Sprint has been able to comply with both the original and the newly passed requirements of the Patriot Act.
• Bandwidth management – Regulation of bandwidth usage against pattern shifts and rapid growth demands, allowing the network to instantly keep within capacity levels.
• Streamlined operations – Means to add new services and features while still maintaining original staffing levels. ZLE requires 70 percent fewer database analysts and 50 percent fewer system administration personnel than current levels.

"ZLE has helped break new ground in transforming Sprint into a true real-time, decision-based enterprise," said Chris Rooke, vice president of marketing and solutions, HP NonStop Enterprise Division. "Through ZLE and our Adaptive Enterprise strategy, we can make the promise of the real-time enterprise a reality across all industries."

Sprint is looking to expand its ZLE architecture further by combining its data across all its lines of business, including local telecommunication services, long-distance voice, data and wireless services for a consolidated view of all business operations. Regardless of the touchpoint, Sprint will offer a complete range of services.

ZLE Demonstrates HP's Adaptive Enterprise in Action

HP's Adaptive Enterprise strategy is a combination of services, solutions and products designed to help customers improve the adaptability of their infrastructure to changing business needs. The strategy simplifies the business processes of an enterprise, emphasizing standardization and integration as a means to empower business agility. By being able to react on the fly, an enterprise truly can capitalize on business change and turn it into a market advantage.

ZLE is a framework of hardware, software and services that enable enterprises to consolidate, analyze and use their data to make real-time business decisions. Coined by Gartner for a 1998 paper on the importance of real-time data, ZLE combines sophisticated enterprise application integration software and operational data store technologies to consolidate and manage data throughout an enterprise, regardless of where it resides in an organization.

ZLE exemplifies key benefits of HP Adaptive Enterprise offerings and solutions built to help businesses capture opportunities and adapt their IT infrastructures to changing business models and market demands.

"‘Real-time' applications are not new," said Roy Schulte, vice president and research fellow, Gartner. "Many business tasks have used online systems for more than 30 years. What is new about real-time enterprises is that multiple parts of the enterprise work together in real time, so information is shared immediately beyond the boundaries of one application system or business unit, and actions can be coordinated and optimized more holistically."

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.