News release

HP Builds Out Roadmap for Adaptive Enterprise Management

Company Introduces More than 30 New and Enhanced HP OpenView Software Solutions

Building on its Adaptive Enterprise strategy introduced last month, HP (NYSE:HPQ) today further defined the evolutionary path for businesses demanding reduced information technology (IT) complexity and increased agility through an intelligently managed infrastructure.

As the next step towards helping enterprises measure IT accountability and optimize the use of IT resources -- and, as a result, gain competitive advantage -- HP introduced more than 30 new and enhanced HP OpenView products, solutions and services here during the annual HP Software Forum.

"HP is unsurpassed in our ability to manage the kinds of rich, heterogeneous infrastructures that our enterprise customers employ," said Nora Denzel, senior vice president, HP Software Global Business Unit. "Today, we tore away at the complexity that prevents CIOs from effectively managing this mission-critical weapon.

"The evolutionary path we've drawn, the host of new HP OpenView management functionalities we've unveiled, the standards-based interfaces we're driving - all wrapped up with the tight integration we have with partners - help enterprises plan and transition to highly adaptive and cost-effective management for their entire infrastructure."

Implementing an adaptive enterprise and optimizing return on IT can best be achieved with an intelligently managed infrastructure that is flexible enough to adapt to rapid changes in the marketplace. In the context of the Darwin Reference Architecture, the company's overall framework for enterprise agility, HP has charted the three evolutionary phases of adaptive management software functionality:

1. Business Stability: Operations-centric management is designed to reduce total cost of ownership by providing IT managers with the means to stabilize and control infrastructure operations - across networks, servers, clients, output and storage devices, and applications.
2. Business Efficiency: Service-centric management, built on this foundation, improves business efficiency and effectiveness by integrating and aligning the IT infrastructure with the services IT delivers to the enterprise.
3. Business Agility: Business-process management takes an enterprise to the ultimate state of management fitness by using business process awareness to ensure that the IT infrastructure automatically applies the right resources to the right problem at the right time.

Enterprise customers can map to these phases and, based on their unique priorities, constraints and competitive strategies, make the progression from a traditional management system that monitors and alerts to a 360-degree adaptive management approach that proactively assesses, advises and acts across all aspects of the enterprise IT stack.

Whether these customers choose to manage their own environments or an outsourcing approach, HP can help them make the progression to an intelligently managed adaptive enterprise. In addition to the strong partnerships the company has with leading systems integrators, HP's Consulting and Integration and Managed Services organizations offer customers a comprehensive set of services around HP's management software portfolio.

New HP OpenView Solutions Clear Path to Adaptive Management

HP introduced more than 30 new and enhanced HP OpenView software solutions today in support of the three phases of adaptive management. Highlights include:

Business Stability: Operation-centric Management

Providing customers with a one-stop shopping approach to gaining deep-level fault management capabilities, HP will incorporate network fault, performance and problem diagnosis, including deeper Layer 2 and 3 fault management, within a new bundled solution called HP OpenView Network Node Manager Advanced 7.0. This integrated package features updates to the intelligent diagnostics engine, which will further reduce the mean-time-to-repair by improving root-cause analysis capabilities that work to resolve and identify possible network downtime problems before disastrous consequences occur.

Business Efficiency: Service-centric Management

To improve linkage between IT service delivery and business objectives, HP is introducing the HP OpenView Service Navigator Value Pack. This solution leverages an integrated common data repository with HP OpenView Service Desk to provide enterprises with a single cohesive means of sharing critical information. This functionality enables proactive management of existing IT resources so service levels can be maintained and service-level agreement violations can be avoided.

Business Agility: Business-process Management

HP is introducing previews of new technology, HP OpenView Business Impact Analysis, which enables companies to assess the impact that infrastructure failures or performance degradations have upon on their business. By correlating business flows with underlying operations data, companies can quickly assess the financial costs and degree of customer disruptions. This ultimately ensures that IT priorities are aligned real-time with business priorities.

"HP's open and extensible OpenView platform gives us the ability to manage the entire lifecycle of our infrastructure - regardless of vendor of origin," said Jason Kennedy, system management analyst, Best Buy Canada Ltd./Future Shop. "HP helped us easily migrate from a chaotic solution to an adaptive one, making the shift to a service-oriented monitoring and management paradigm streamlined and seamless. By working with HP on our transformation, we became more focused on our business and the market at hand, providing our customers with an elevated level of service."

"With today's announcements, HP is strengthening its position in 'adaptive enterprise' by bringing together architecture and product with a vision sensitive to IT organizational dynamics and business demands," said Dennis Drogseth, vice president, Enterprise Management Associates. "HP's clear focus on open, modular and flexible management bodes well for IT organizations seeking a truly strategic business partner rather than 'all-or-nothing' mandates or sales efforts targeting a uni-brand 'bag of goods.' With these announcements, HP has reinforced its commitment to on-demand computing as a fully multibrand requirement touching all levels of the infrastructure."

In a separate announcement today, HP introduced enhanced integration capabilities, demonstrating the company's successful work with and through customers and partners to help end-users achieve their goals for achieving an adaptive enterprise. Unlike prescriptive vendors, HP's collaborative approach extends the management options of the enterprise and reaffirms the position that the customer controls its own infrastructure, and its own destiny. (See release titled "HP Collaborates with Customers, Partners to Advance Management of the Adaptive Enterprise.")

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's quarterly report on Form 10-Q for the quarter ended January 31, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.