Press Release: February 06, 2007

HP Broadens Virtualization Offering with New Service, Expanded Availability via Channel Partners

PALO ALTO, Calif., Jan. 24, 2007

HP today expanded its portfolio of virtualization services with a new offering that helps enterprise customers virtualize their entire IT infrastructures – from the desktop to the data center – enabling automated, 24x7, lights-out computing.

Additionally, the company has broadened its distribution efforts by making the HP Care Pack Service newly available through select HP channel partners.

Industry experts estimate that average server utilization ranges from only 10 to 30 percent. The HP Care Pack Service, based on VMware’s Capacity Planner, is a part of HP Virtualization Assessment Services, which enable customers to make more efficient use of underutilized IT assets, reduce data center operating costs and minimize risks associated with infrastructure changes.

“HP’s virtualization technology and services can help customers increase agility and achieve real business benefits by ensuring that IT supply automatically meets business demand,” said Nick van der Zweep, director of virtualization, HP. “With HP Virtualization Assessment Services, we’re bringing customers further along the road to achieving a next-generation data center.”

HP has been helping customers virtualize their environments for many years using technologies such as HP Asset and Consolidation Analysis Tools and VMware Capacity Planner. In a typical scenario, utilization data for servers, storage and desktops from both HP and other vendors is collected at the customer’s site over a three- to four-week period. HP Services professionals then make recommendations on how to best consolidate and virtualize their environment, as well as offer a cost justification and sound business rationale for these projects.

Using these recommendations, customers can elect to consolidate existing server workloads onto HP Integrity, ProLiant and BladeSystem servers. By using virtualization solutions such as HP Virtual Server Environment for Integrity servers, customers can double their server utilization rates and boost systems administrator productivity by automatically growing and shrinking virtual servers as business needs change.

In addition, customers that consolidate using HP Virtualization Assessment Services also can take advantage of added cost savings by leveraging rate reductions passed along to many HP customers by utility companies. For example, Pacific Gas & Electric Co. offers customers that increase energy efficiency in their data centers a rebate of up to $4 million per site consolidation.(1)

To reduce the complexity of customers’ storage environments, storage utilization also can be analyzed. Recommendations can then be made on consolidation of storage onto HP StorageWorks XP and EVA disk arrays to address operations and management inefficiencies and create flexible, virtual pools of storage.

Additionally, customers using HP Virtualization Assessment Services can get recommendations on virtualizing their heterogeneous desktop environments. HP Thin Clients on the front-end and HP ProLiant or BladeSystem servers or Blade PCs on the back-end can increase data security while decreasing maintenance costs via centralized management and provisioning functions.

The new HP Care Pack Service will be available Feb. 1 via HP Services and select HP distributors such as the KeyLink Systems Group of Agilysys, Arrow Enterprise Computing Solutions and Avnet. Worldwide availability will expand over the next few months.

“We are pleased to be working with HP to help our partners reduce their customers’ data center costs and make more effective use of IT resources,” said Rick Alvarez, vice president and general manager, HP Business Unit, Avnet Technology Solutions, Americas. “Services from HP and Avnet will allow our partners to help enterprise customers drive a faster return on investment as they speed their infrastructure transition to virtual environments.”

More information about HP’s virtualization offerings is available at

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 Oct. 31, 2006, HP revenue totaled $91.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

(1) HP customers in covered service areas; actual rebates may vary. More information 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 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 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 Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006 and other reports filed after that Form 10-K. 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