Press Release: September 12, 2007

HP Targets "Global 500,000" with New Technologies, Services Designed Specifically for Midsize Companies

PALO ALTO, Calif., Sept. 12, 2007

Related Links
» BladeSystem
» StorageWorks
» Services for business & IT
» Management software
» Adaptive infrastructure
»View the press kit
»Read the feature story

HP today announced new products, solutions and services designed specifically to help the world's midsize companies - the "Global 500,000" - accelerate growth and reduce operating costs.

Highlighting the launch is "Shorty," the compact HP BladeSystem c3000 enclosure for smaller technology sites, branch offices and remote locations. Implementation of the c3000 requires no special power, cooling or staff, easing midsize customers' ability to gain the benefits of a fully bladed environment.

HP also unveiled the HP StorageWorks All-in-One SB600c Storage Blade, which works in both the new c3000 and the existing HP BladeSystem c7000. Additionally, HP has released new application "blueprints," called HP Solution Blocks, which simplify and accelerate the integration of multiple application and data protection solutions into the new c3000 enclosure.

New HP research indicates that two-thirds of midsize businesses want technology offerings that meet their needs and are created just for them. In addition, almost 90 percent of senior business and technology executives at midsize companies say their company is doing more with less by using technology.(1)

The new products, backed by a set of HP Care Pack services, expand HP's Adaptive Infrastructure portfolio, which helps customers of all sizes reap the benefits of an infrastructure tailored to meet their business requirements.

"Midsize customers don't want watered down enterprise solutions," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "They want complete solutions built uniquely to address their needs."

New HP offerings for midsize businesses built from the ground up

With limited budgets and small IT staffs, midsize companies are challenged to do more with less and, as a result, require very different solutions than their enterprise counterparts. In addition to the HP BladeSystem c3000, HP is addressing this challenge with new offerings that include:

  • HP StorageWorks All-in-One SB600c - Storage blade for the new c3000 enclosure helps customers protect their businesses with easy-to-use backup, archiving and disaster recovery capabilities - all without requiring specific storage expertise. It is the only storage blade solution available today that delivers bladed network-attached storage, iSCSI SAN capabilities and data protection in a single device.

    With the SB600c, growing businesses can expand their storage and have data protection without additional cables or management. Customers can easily migrate data from older servers or add storage capacity to applications through a series of simple clicks without requiring specialized storage expertise.

    Customers also can back up data within the c3000 using the HP StorageWorks Ultrium 448c Tape Blade, which provides data protection for all servers and associated storage.

  • HP Total Care Initiative - Newly expanded for the midmarket, the initiative provides customers with resources for making technology decisions, maximizing technology investments for quick return on investment and keeping businesses safe.

  • HP Midsize Business Solutions - Available through HP channel partners, these tested "blueprints" deliver business outcomes through accelerated deployment for applications such as mail, messaging, customer relationship management and enterprise resource planning. These solutions are optimized to address key business priorities of midsize companies such as continuity, security and efficiency.

    • HP's solutions for midsize companies are designed and integrated with software from partners such as Citrix®, Microsoft, Oracle, Sage Software, SAP and VMware, as well as local independent software vendors. The simple, affordable and reliable solutions are from some of the best companies in the industry and designed for midsize businesses. The solutions extend across all HP ProLiant servers, HP BladeSystem and HP StorageWorks midmarket offerings.

    • For businesses looking to run multiple applications in a single consolidated environment, thus optimizing the use of their HP BladeSystem enclosure, HP offers HP BladeSystem Solution Blocks. These tested and documented combinations of HP server blades, storage blades and management software were developed for the channel to quickly configure and deliver multiple applications on the BladeSystem c3000.

Simple, all-in-one design adds savings to the bottom line

The HP BladeSystem c3000 reduces the time and cost it takes to deploy new business applications, enabling small IT staffs to deliver big business outcomes. Savings can then be redirected to other initiatives to fund future growth. Customers realize:

  • Power and cooling savings of up to 30 percent;

  • Storage-area networking (SAN) connection costs reduced up to 53 percent;

  • Cabling reduced by up to 94 percent, which lowers costs and complexity; and

  • Breakeven costs at three to five server blades.(2)

"For the first time, customers with space and IT staffing constraints can take advantage of the business benefits that a bladed infrastructure delivers," said Livermore. "The c3000 is truly a 'deploy anywhere, do anything' infrastructure that is easy to manage and architected for growth."

The rack-based c3000 features a compact 10.5-inch-high design that fits up to eight blades, plugs into a standard 110- or 220-volt wall outlet and provides easy-to-connect networking. The tower version of the c3000, expected to be available in the first quarter of 2008, is outfitted with the same features and will require only two square feet of floor space.

The c3000 has full compatibility with the existing line of HP BladeSystem c-Class servers and network connectivity options. It also supports the HP ProLiant, Integrity and StorageWorks server and storage blades.

According to IDC data, HP's x86 blade servers lead the industry with 47.2 percent market share worldwide measured by revenue.(3) In addition, in the third quarter of fiscal year 2007, HP's blade server revenue grew 81 percent year over year.(4)

"For the kind of end-to-end blade solutions we deliver to midsize customers, the new BladeSystem c3000 is the right combination of versatility and simplicity to meet their unique business requirements," said Valerie Reamer, president, Gekkotek Inc., an HP channel partner based in Vancouver, Wash. "Building the right IT solution at a smaller site often presents bigger challenges than those of a large data center. Midsize customers have big expectations for customization which are often tempered by restrictions of time, budget, power and staff."

Technology core to business success

HP research shows that 88 percent of business decision makers at midsize companies believe that technology is integral to the success of their business outcomes.

"To be effective, midsize business CIOs must lead an organization that meets the expectations of the business. Midsize businesses prefer to purchase a business solution versus a technology solution and want to see the business value before they make an IT investment," said James Browning, vice president, SMB Research, Gartner Inc. "For blade adoption and use to increase in the midmarket, server vendors will need to deliver solution-based blade systems that support a business need."

Partnering with the industry's best

Because midsize customers rely on the value channel partners bring to their businesses, HP has already trained more than 5,000 worldwide HP Blade System Channel partners to deliver the new products and services today.

Midsize customers, however, look to a technology vendor for more than quality technology provided through trusted channel partners. According to HP's survey, 90 percent of midsize companies said it is important that their technology provider has good relationships with a wide range of software manufacturers.

HP has a market-leading track record of forming alliances with the top ISVs. The company works with its partners to ensure the best implementations of midsize businesses' favorite applications run on HP systems delivered through an extensive network of HP-certified resellers.

New services and certifications to increase return on investment

HP Services has developed three new HP Care Pack services to help customers get the most out of their c3000 investments. Available through HP and its channel partners, the packaged, fixed-price services include HP Support Plus 24 for c3000, c3000 Installation & Start-up and c3000 Enclosure Hardware Support.

HP Financial Services is offering two financing programs designed to make the transition to the HP BladeSystem c3000 simple and affordable. Customers have the option to lease their solution at a low rate or a special step payment program over the life of the lease.(5)

Availability and pricing(6)

The HP BladeSystem c3000, HP StorageWorks All-in-One SB600c and HP Solution Blocks are currently available. Pricing for c3000 starts at $4,299 and the SB600c at $9,968. Pricing of the Solution Blocks is available through HP channel partners and varies based on the number of users or capacity requirements.

More information on today's announcement is available in an online press kit at Copies of the full research report are available upon request.

About HP

HP focuses on simplifying technology experiences for all of its customers - from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world's largest IT companies, with revenue totaling $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP (NYSE: HPQ) is available at

(1) Penn, Schoen & Berland Associates, "HP Mid-Market Business Technology Study," August 2007. Commissioned by HP, the full report is available upon request.

(2) Based on internal HP testing compared to standard rack servers. Results vary based on Ethernet and Fibre Channel connectivity costs.

(3) IDC Worldwide Quarterly Server Tracker, August 2007.

(4) HP fiscal Q3 2007 quarterly results.

(5) Financing available through Hewlett-Packard Financial Services Company or one of its affiliates and is subject to credit approval and execution of standard HP Financial Services documentation. Other restrictions may apply. HP Financial Services reserves the right to change or cancel this program at any time without notice.

(6) Estimated U.S. street prices. Actual prices may vary.

Citrix is a trademark of Citrix Systems, Inc. and/or one or more of its subsidiaries, and may be registered in the U.S. Patent and Trademark Office and in other countries

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 statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 and HP's other filings with the Securities and Exchange Commission, including but not limited to HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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