HP and Microsoft Simplify Technology Environments with Solutions Built on New Infrastructure-to-application Model

World’s largest technology company and No. 1 software provider plan to advance cloud computing with industry’s most integrated technology stack

PALO ALTO, Calif. -- HP andMicrosoft Corp. today announced a three-year agreement to invest$250 million to significantly simplify technology environments forbusinesses of all sizes.

The companies plan todeliver new solutions that will:

  • be built on a next-generation infrastructure-to-applicationmodel;
  • advance cloud computing by speeding application implementation;and
  • eliminate complexities of IT management and automate existingmanual processes to lower the overall costs.

This agreement represents the industry’s most comprehensivetechnology stack integration to date – from infrastructure toapplication – and is intended to substantially improve the customerexperience for developing, deploying and managing ITenvironments.

With this strategic partnership, HP and Microsoft will collaborateon an engineering roadmap for data management machines; converged,prepackaged application solutions; comprehensive virtualizationofferings; and integrated management tools. Delivered through theindustry’s most extensive sales and partner network, these dynamicIT solutions will provide:

  • Increased business efficiency through solutions that respond tochanging business requirements by seamlessly converging server,storage, network and application resources in a highly automated,self-managed environment.
  • Improved application performance, reliability and availabilityfor some of the industry’s top business applications, including MicrosoftExchange Server and MicrosoftSQL Server, by creating a deeply optimized “machine”environment. This is achieved through turnkey, pre-integratedserver, storage, networking and application packages. These datamanagement and email machines provide “push button” simplicity indeployment and management.
  • Enhanced operations through integrated, interoperablevirtualization and management tools that allow technologyenvironments to be automatically provisioned, managed andcontinuously self-tuned. Through the integration of HP InsightSoftware, HPBusiness Technology Optimization software and Microsoft SystemCenter, enterprise customers use a unified management solutionto automate application deployment along withinfrastructure-to-application monitoring. This integration alsodelivers power and performance optimization, while ensuringinteroperability in a heterogeneous data center environment.
  • Investment protection and low total cost of ownership, enablingcustomers to deploy systems with confidence. The joint solutionsare built on industry standards and designed to utilize existingdata center investments, all managed through a common framework.This approach is designed to enable customers to integrate privateor public cloud computing models as their business requires. HP andMicrosoft will collaborate on the Windows Azure platform, with HPand Microsoft offering services, and Microsoft continuing to investin HP hardware for Windows Azureinfrastructure.

“Driving innovation helps businesses establish a competitiveadvantage,” said MarkHurd, HP chairman and chief executive officer. “Thiscollaboration will allow HP and Microsoft to offer our customerstransformative technology that will reduce costs, generate businessgrowth and accelerate innovation.”

The new infrastructure-to-application model from HP and Microsoftwill be delivered as integrated offerings for large, heterogeneousdata center environments as well as through solutions designed forsmall and midsize businesses. Solutions areavailable immediately, with new offerings being introducedthroughout the next three years.

“This agreement, which spans hardware, software and services, willenable business customers to optimize performance with push-buttonsimplicity at the lowest-possible total cost of ownership,” said SteveBallmer, chief executive officer, Microsoft Corp. “Our extendedpartnership will transform the way large enterprises deliverservices to their customers, and help smaller organizations adoptIT to grow their businesses. Microsoft and HP are betting on eachother so our customers don’t have to gamble on IT.”

Driving opportunity for HP and Microsoft Frontline channel partnersworldwide

Under the terms of the expanded partnership, the two companies willincrease their global investment by 10 times to drive newopportunities for the 32,000 HP and Microsoft Frontline channelpartners. Partners will support customers in modernizing theirenvironments through a combination of software and hardwareinfrastructure-to-application packages and services. Partnerbenefits include:

  • Quicker time to revenue with simplified and shortened salescycles resulting from Smart Bundles and all-inclusive packages aswell as new offerings that provide add-on application and servicesales opportunities.
  • Flexible financing options through HP FinancialServices, which will enable resellers to drive customeradoption by making technology solutions more accessible and easy toacquire.
  • Increased support with dedicated field resources focused onpresales initiatives and extensive partner training.
  • Jointly funded worldwide marketing campaigns, lead-generationprograms and sales tools, available at www.hpmspartners.com.

Driving customer success with HP professional services andMicrosoft Services

To speed return on investment (ROI) and increase business value,the integrated portfolio is complemented by new design,implementation and support services for the joint solutions.Through more than 11,000 Microsoft-certified HP professionalsworldwide, HPServices, in partnership with Microsoft Services, will support the entire integrated hardwareand software solution from simple implementations to the mostcritical enterprise infrastructure. Service offeringsinclude:

  • Strategy workshops, ROI and business value services. Otheravailable services include architecture, design, pilot, globalimplementation, support for server virtualization and managementsolutions, client virtualization, data management and cloudcomputing as well as per-seat fixed-price Microsoft Exchange Serverupgrade/migration services.
  • Application modernization services for large-scale onlinetransaction processing (OLTP) implementations.
  • Planned customized Business Intelligence Solutions that providefaster time to application value.
  • Assistance for customers who seek to run their technologyon-premises, outsourced or via the cloud.

More information about the HP and Microsoft agreement is availableat www.hp.com/go/microsoft/infra2apps.

Microsoft and HP executives will discuss this announcement during apublic audio teleconference today at 11:15 a.m. ET. Interestedparties can listen to the audio teleconference by visiting http://hpbroadband.com/program.aspx?key=SKPNSKDIKG.Interested parties can participate in the audio teleconference bycalling +1 800 369 1191 (U.S., toll-free) or +1 212 519 0829(international, toll). The passcode is 3022632.

The teleconference replay and other media materials are availableat www.microsoft.com/presspass/presskits/infrastructure/ and www.hp.com/go/HPMSFTalliance.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leaderin software, services and solutions that help people and businessesrealize their full potential.

About HP

HP creates new possibilities for technology to have a meaningfulimpact on people, businesses, governments and society. The world’slargest technology company, HP brings together a portfolio thatspans printing, personal computing, software, services and ITinfrastructure to solve customer problems. More information aboutHP (NYSE: HPQ) is available at http://www.hp.com/.

This news release contains forward-looking statements that involverisks, uncertainties and assumptions. If such risks oruncertainties materialize or such assumptions prove incorrect, theresults of HP and its consolidated subsidiaries could differmaterially from those expressed or implied by such forward-lookingstatements and assumptions. All statements other than statements ofhistorical fact are statements that could be deemed forward-lookingstatements, including but not limited to statements of the plans,strategies and objectives of management for future operations; anystatements concerning expected development, performance or marketshare relating to products and services; any statements regardinganticipated operational and financial results; any statements ofexpectation or belief; and any statements of assumptions underlyingany of the foregoing. Risks, uncertainties and assumptions includemacroeconomic and geopolitical trends and events; the execution andperformance of contracts by HP and its customers, suppliers andpartners; the achievement of expected operational and financialresults; and other risks that are described in HP’s filings withthe Securities and Exchange Commission, including but not limitedto HP’s Annual Report on Form 10-K for the fiscal year endedOctober 31, 2009. HP assumes no obligation and does not intend toupdate these forward-looking statements.

© 2010 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. The onlywarranties for HP products and services are set forth inn theexpress warranty statements accompanying such products andservices. Nothing herein should be constructed as constructing anadditional warranty. HP shall not be liable for technical oreditorial errors or omissions contained herein.

Editorial contacts:

Michael Thacker, HP:thacker@hp.com

Microsoft Rapid ResponseTeam: rrt@waggeneredstrom.com

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.