Press Release:

HP Details Plans to Consolidate Global Data Centers

Transformation expected to achieve world-class capabilities and cost structure
PALO ALTO, Calif., May 17, 2006

HP today announced plans to consolidate its 85 data centers worldwide into six larger centers located in three U.S. cities.

The consolidation will result in the deployment of HP’s IT infrastructure in two facilities each in Atlanta, Houston and Austin, Texas.

In addition to enabling HP’s IT organization to be more nimble and provide better information for the entire company, the consolidation will help HP reduce its IT spending by approximately $1 billion in the coming years. The facilities also will serve as a showcase for HP Adaptive Infrastructure products and services.

“Consolidating our data operations into six state-of-the-art centers will provide HP with strengths that are unmatched in the industry,” said Randy Mott, executive vice president and chief information officer, HP. “The data centers will provide our business with more dependable, simplified operations. This effort will enable faster delivery of new technologies, services and information and provide room for growth and improved business continuity, while significantly reducing costs.”

HP has designed the six facilities to be “lights out” data centers, capable of being managed remotely. This will be enabled through the use of the company’s adaptive infrastructure solutions, including HP Integrity servers, HP BladeSystem servers, HP OpenView management software and HP StorageWorks networked storage. HP also is implementing smart cooling technologies that optimize airflow for cooling of the data centers, leading to utility cost savings of up to 25 percent.

The three data center locations were selected based on availability and affordability of space, power and network bandwidth, as well as a lower probability of impact from natural disasters. Each location will host two separate physical sites with more than 50,000 square feet of useable floor space within 15 miles of each other, enabling them to be serviced centrally.

The data centers are being designed as a series of modules that can be arranged in various configurations. The modular design will facilitate rapid build times and significant efficiencies in maintaining, managing and upgrading the environment to better leverage the frequently changing technology landscape.

Space, power and cooling will be rapidly scalable and optimally balanced, with utilization targeted at 70-80 percent per module compared with average utilization of 50 percent in less sophisticated environments.

While these centers will serve HP’s internal requirements, the company’s HP Services unit will continue to provide services to customers through more than 70 separate data centers in 23 countries, which also will use HP Adaptive Infrastructure products and services.

“Getting IT right requires that we align our core infrastructure to the speed, agility and cost structures that HP’s business innovation requires,” said Mark Hurd, HP chief executive officer and president. “The capabilities that we deliver will not only be the right solution to meet our own business requirements, but will also provide the best environment for our customers to see first-hand what HP technology and services can do for them. These facilities will serve as a model of the next-generation data center that HP believes represents the future of enterprise computing.”

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to anticipated operational and financial results; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at