HP Strengthens No. 1 Midrange UNIX Server Portfolio with New Pricing, Services and Functionality

Enhancements Offer Customers Greater Return on Investment, Extend HP's Performance Leadership
PALO ALTO, Calif., April 3, 2003

As part of its efforts to help customers realize the best return on their server investments, HP (NYSE:HPQ) today announced new pricing, services and functional enhancements to its portfolio of offerings for the midrange UNIX® server market, which the company has led for the past six years according to industry research firms.(1)

Delivering customers increased system value, HP has reduced prices significantly across its HP 9000 midrange UNIX server portfolio, introduced custom configuration services and unveiled the industry's only cell board capacity-on-demand offering. The enhanced product offerings enable a more adaptive infrastructure by providing customers flexibility, performance and cost savings unmatched by the competition.

HP also announced three new performance benchmarks that outperform the competition in the industry's most demanding workloads.

"HP has been able to maintain its No. 1 position in UNIX midrange server market share, in terms of factory revenue, for six years, which includes annual 2002 data through the last reported quarter, ending in December 2002," said Jean S. Bozman, research vice president, IDC. "It's a remarkable showing of market share strength in the midrange UNIX server segment. With today's announced price adjustments and new services, HP is offering a combination of competitive prices, high performance and advanced features to its installed base and to new customers."

HP is offering customers approximately 20 percent lower total system price reductions across its midrange UNIX server lines. The price adjustments reduce CPU, memory and support pricing between 18 to 25 percent. The HP 9000 midrange UNIX server portfolio includes the 16-processor HP Server rp8400 and the eight-processor HP Server rp7410 and rp7405.

In addition, HP introduced for its midrange UNIX servers no-charge custom services that provide customers with free factory configuration services, including partitioning, custom component installation and custom software system load. HP is the only vendor offering partitioning directly from the factory without charging premiums for the service.

The custom configuration services help provide HP customers with accelerated system deployments and time to market, while reducing services costs and improving overall total cost of ownership. HP also offers free site preparation and installation with every midrange server it sells.

Finally, HP will offer new midrange functionality by extending the industry's broadest and most flexible on-demand solutions portfolio with the only complete standby cell board capacity-on-demand offering, including CPU, memory and cell board. Comprehensive HP On Demand programs help customers better manage their IT budgets and respond quickly to changing business requirements. Programs include instant Capacity on Demand and Pay Per Use solutions.

"HP continues to drive the standard for midrange UNIX leadership," said Mark Hudson, vice president of marketing, HP Business Critical Systems. "We provide our customers with clear and consistent product roadmaps and unmatched long-term investment protection through in-chassis upgradeability to future PA-RISC processors as well as to next-generation Itanium processors. The competition can only envy the superior midrange value, functionality and investment protection HP offers at very attractive prices."

HP Servers Outperform the Competition Across Diverse Workloads

HP has recently established new, leading performance benchmarks in the industry's most demanding workloads. HP midrange UNIX servers running PA-8700+ processors and the HP-UX 11i operating environment have produced the following new performance results(2):

  • SPECjAppServer2002: the HP rp8400/rp7410 cluster, utilizing BEA WebLogic Server application software, achieved a world record cluster result of 2,238.66 TOPS@MultipleNode (total operations per second), beating the next best clustered result on SunFire V1280 servers by 27 percent. The price/performance metric of 1,089.84 US$/TOPS@MultipleNode also beat out the SunFire V1280 price/performance result by more than 20 percent.

  • SPECweb99_SSL: HP Server rp8400 achieved a world record result of 4,700 simultaneous connections, beating IBM's best published 16-processor result using Power4 processors.

  • SPECjbb2000: HP Server rp7410 achieved a result of 116,145 operations per second, beating IBM's eight-processor Power4+ result and Sun's best published result using 12 UltraSPARC III processors.

"We've been using HP midrange UNIX systems for about a year now," said Tony Fuller, vice president of information technologies and chief information officer, Rent-A-Center. "We have had very good performance and will begin implementing the new HP rp8400 systems in the next few weeks. We expect to receive even greater benefits from the performance and system availability with the rp8400 systems. HP was able to easily fulfill the configuration and performance requirements for our business."

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.

(1) IDC Worldwide Quarterly Server Tracker, Q4CY2002, February 2003. IDC uses price ranges to differentiate servers into entry-level (up to $100,000), midrange ($100,000-$1 million) and high-end ($1 million and above).

Further information is available at http://idctracker.com/. Unless specified as customer revenue, all other figures are factory revenue. Data includes that for Compaq Computer Corp., which operated as a separate entity for a portion of 2002.

(2) Competitive benchmark results stated above reflect results published on http://www.spec.org as of April 1, 2003.

UNIX is a registered trademark of the Open Group. SPEC and the benchmark names SPECjAppServer, SPECweb and SPECjbb are registered trademarks of the Standard Performance Evaluation Corporation.

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 annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 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.

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 http://www.hp.com.