Nina Lytton, president, Open Systems Advisors - HP Integrity ...

Why buyHP NonStop?© 2006 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

To our valuedNonStop customer evangelists• This presentation is for you, the in-houseNonStop customer evangelist− Use it to sell the benefits of the NonStopplatform to your executive management− It is written in your voice, not HP’s− Notes Pages are full of supportinginformation, resources, and customizationoptions (see back up slides)− See the Why buy HP NonStop? website formore executive-level selling up materials• http://h20223.www2.hp.com/NonStopComputing/cache/363019-0-0-0-121.html326 September2006

Q: Why buy HP NonStop?Continuous availability,100% of the timeLow costKeeps us out of thepress and courtsGrow as ourbusiness growsBullet-proofdisasterrecoveryNonStop family ofservers have whatwe need…Leading-edgeyet proventechnologyCommittedfuture ofinnovationBest competitiveproducts in themarketMatch ourmulti-tierarchitectureEasy on our ITstaffOpen andstandardsbased426 September2006

We need 100 percent uptime…100% uptime• Regardless ofour SLAs, ourusers andculture demandcontinuous24x7 operation• Anything less isperceived asfalling short• Most effectiveproblemescalationprocess in thebusiness• NonStop has the highestavailability of anysystem in the industry• Up to 99.99999%uptime (3 secondsdowntime per year)• Originator of highavailabilitysystems• 30 years of time-tested,bullet-proof availability526 September2006

We need low-cost products…The Standish Group pegs NonStop servers at less than half the TCO ofIBM mainframes while offering the same class of service…and cost on apar with UNIX ® systems, but with much higher class service levelsNonStop price/performance improved 250% with Integrity NonStop serversNow the lowest-price high-availability system in the world—

We need products that keep us out ofthe press and out of the courts…• IT outages that fill the press and make stock prices falldo not happen on NonStop systems• NonStop drives 23 of the top 25 stock exchanges; Tokyois not one of them…Chicago Mercantile Exchange isTokyo Stock ExchangeOther vendorWorld’s second-largest stock exchangeNov 2005: Software upgrade causesworst outage on record; seniorexecutives get 10%–50% pay cutJan 2006: Trade volume spikes curtailtrading for weeksChicago Mercantile ExchangeNonStop customerLargest, most diverse financial exchangefor trading futures and optionsHandles 13 million transactions a day atpeak, scales for 500% growth in 6 yearsMaintains an average response time ofless than 50 milliseconds726 September2006

We needproducts that grow as our business grows…• NonStop can expand to4,000+ processors− Add processors online,without taking down thesystem• NonStop has massive installationstoday− KDDI, Japan Telecom—nationwideleader for mobile phone servicesgrowing rapidly with massive NonStopinstallation− New York Stock Exchange—tradingfloor processing with massive complexof NonStop systems− World’s largest ISP—requires NonStopas a vital part of online business− Sprint—largest database in the world− Vodacom (South African cellular)—0 to 9 million subscribers in 10 years826 September2006

We needbullet-proof disaster recovery…• HP knows about preparing for disasters• Forrester puts HP disaster recovery services squarely inthe leadership quadrant—ahead of SunGard and IBMNonStop systems tolerate the worst surprises• Fault tolerance built into each system• Low-level transaction protection, part of operating system• Super high-performance database audit and restore• Well-tested NonStop Remote Database Facility (NonStop RDF) software• Even a “zero lost transaction” (ZLT) guarantee with NonStop RDF/ZLT software• NonStop provides the fastest database recovery, with transactional consistency,in the industry (in the rare instance of a downed system)926 September2006

We need products with a future…• NonStop is growing revenues YoY• HP is ramping NonStop softwareR&D• HP has committed NonStoproadmap through 2013• “HP has seen a remarkableresurgence in its shares—up 30percent over the past 12 months—as almost all of its businesssegments have reacted favorably tomore focus and restructuringefforts.”— Louis R. Miscioscia, Cowen and Companyanalyst, Red Herring, 8/16/061026 September2006

We need open products…• We must have products thatinteroperate and that canleverage mainstream talent• NonStop is now fullybuzzword compliantBefore•Proprietary APIs•Proprietaryprotocols•Proprietary clientsNow•Standard APIs: WSDL•Standard protocols:HTTP, SOAP•Standard clients:WS, browsers1126 September2006

“The HP Integrity NonStop is the first server to combinebetter than mainframe-class service levels andreliability… with the flexibility and cost benefits of anindustry-standard architecture.”— Ann Livermore, Executive Vice President, Technology Solutions Group, HP1226 September2006

We need the bestcompetitive products on the market…Compared to mainframes• NonStop advantages…− Approximately one-half the TCO− Highest levels of interoperability, availability, scalability− Open environment to quickly introduce new product offerings• Sabre migrates from mainframe TPF to NonStop− Reduced TCO by 45%− Doubled developer productivity• Shazam migrating from 28-year-old mainframeinfrastructure− Expects 30% cost savings1326 September2006

We need the bestcompetitive products on the market…Compared to Sun• NonStop advantages…− Continuous application availability “out of the box”for 99.99999% uptime− More power• Better than double processor performance− More scale• NonStop system: 4,080 processors− Disaster-tolerant solutions guarantee: no transactions lost• Sabre moves core applications from Sun Solaris toNonStop platform1426 September2006

HP Integrity NonStop server beatsIBM on pricing and valueInitial purchase + 5-year supportHP deliversbest price forfunction and servicelevels$15 M• Comparable function• Lower service levels• Higher price• Comparable function• Comparable servicelevels• Much higher priceIBM$10 MIBM$5 MHP$01526 September2006HP IntegrityNonStop serverIBM z/990 + z/OS +zAAP + Linux ILFIBM Parallel Sysplex z/990 +z/OS + zAAP + Linux ILF

NS1000 (8P): TCO advantage versusclustered open systems$1,600.0$1,500$1,200.0Total Costof Ownership(US$,000)$1,000$800.0$500$400.0Application CostBasic Cost$0$0.0IBM AIX Cluster Sun Cluster Wintel Cluster NS1000 (8P)SystemSource: Standish Group, 2006Identical ATM application workload running on Wintel, Sun, and IBM; Integrity NS1000 cost data provided toStandish Group for primary research.1626 September2006

We need productsthat match our multi-tier architecture…• NonStop is ideal for our back-end enterprise processing− Enterprise hardened with highest availability and scalability• We can put Linux, Windows ® , and UNIX ® systems in othertiers for low-cost MIPS with full interoperability− Most critical processing on NonStop; least critical on Linux− If Linux processing becomes more critical, move it to NonStop withno code changes• Customers are doing this today with NonStop− MyTravel reservation system and database run on NonStop;customer interface runs on Windows− Simdesk World Wide Server runs on NonStop and Linux blades1726 September2006

We need productsthat are easy on our IT staff…• NonStop open-standardscompliance avoids lengthyretraining• Extensive NonStop servicesportfolio for our “one-time” needs− Only pay for what we need− HP and NonStop service expertsassess, architect, integrate, andmanage complex, business-critical ITenvironments 24x7• NonStop outsourcing modelavailable1826 September2006

Q: Why buy HP NonStop?Understandsour businessIs viableHP is a vendorthat…Will be our truepartner1926 September2006

We need a vendorthat understands financial services…• HP has a financial services solution portfolio wecan leverage• The largest U.S. banks use NonStop today− Bank of America− US Bancorp –Wells Fargo− JPMorganChase –Wachovia• HP has services we can use to get started– Strategic consulting– Business consulting– Technical consulting– Project management services leverage2026 September2006

We need a vendorthat understands telecommunications…• HP has telecommunicationssolutions we can leverage− Home Location Register (HLR)− Location Based Services (LBS)− Multimedia Messaging Services (MMS)− Usage Management System (UMS)• Leading telecommunicationsproviders use NonStop today− Sprint’s database, the largest in theworld, runs on NonStop− Vodacom− KDDI2126 September2006

We need a vendorthat understands healthcare…• HP has a healthcare solution portfoliowe can leverage− edisolve EDI Claims Management andElectronic Funds Transfer− GE Healthcare Centricity Enterprise− Crossflo Systems CDX322• Leading healthcare providers useNonStop today− Continuum Health Partners: 100,000+inpatients and 1.3 million outpatients− PeaceHealth integrated delivery network:Six hospitals in Alaska, Washington, andOregon26 September2006

We need a vendor that is viable…• HP is silently stalking IBM.At current growth rates, HP willpass IBM in worldwide totalrevenues in FY07.• HP stock price has doubled overthe last 3 years.• HP is operationally sound with asolid strategy.• HP is the only vendor with fullend-to-end IT products andservices.2326 September2006

We need a vendorthat will be a true partner…“It takes a good strong partner to be able to take the sales hatoff and focus on what’s best for the customer. That’s what HPdoes, in addition to providing the specialized computingplatforms and services we need to run our business. This ismuch more than a vendor relationship. It’s a strategicpartnership that plays a critical role in the ongoing success ofSprint and our customers.”— Tom Steele, principal network design engineer, Sprint2426 September2006

“With the new Integrity NonStop server, HP is providing a bionic heart formission-critical enterprise applications. Moving the time-tested NonStoptechnology forward onto an industry-standard platform delivers significantcustomer benefits: a major performance kick, more cost-effective solutions,higher availability, reduced risk, and increased longevity of the system.”— Nina Lytton, president, Open Systems Advisors“Integrity NonStop server has been introduced to breathe new life into theenvironment by bringing standards to NonStop and NonStop to standards.”—David Reine, The Clipper Group“Scalability is a huge issue for us as our order volume continues togrow…We’ve pushed the Integrity NonStop server as hard as we can, andwe have yet to find the limit.”—John Hart, director of technology engineering at CME2526 September2006

Back Up—Notes to slides2626 September2006

Notes: Slide 3: To our valued NonStopcustomer evangelists• There is no one more valuable to the NonStop Enterprise Division than you, thein-house NonStop customer evangelist.• The presentation is designed for you to present, in your own voice. It addressesthe business concerns that your executives take seriously, in a high-level,nontechnical way. Industry-specific perspectives are included. Copy thepresentation to your own company’s PowerPoint template. Delete the slides thatdon’t apply to you.• Each slide contains speaker notes with supporting information for the claimspresented. Resources for additional information are also included.• The newly developed “Why buy HP NonStop?” website[http://h20223.www2.hp.com/NonStopComputing/cache/363019-0-0-0-121.html] provides even more information.• Please treat it with care. We welcome your feedback and hope this toolprovides you with the support you need to convince your management thatnobody else even comes close when it comes to supporting the world’s savviestcustomers with the technology for a competitive edge.2726 September2006

Notes: Slide 4: Q: Why buy HPNonStop?• This slide provides an overview of the first part ofthe presentation and sets up the slides to follow.• Later in the presentation, a second overview slidecovers the strengths of HP as a vendor and a truepartner.2826 September2006

Notes: Slide 5: We need 100 percentuptime• The business objective of availability has always been to increase profits by keeping services running whenever customers want them.Availability ensures against loss of revenue because of unavailable services and safeguards against consequences like customer dissatisfactionand loss of reputation.− IT downtime is costing large U.S. enterprises an average 3.6% of their revenues per year. Financial services organizations are losing US$222 million(16% of revenue)— Infonetics Research, “The Costs of Enterprise Downtime: North American Vertical Markets 2005”− A study conducted by AC Group, Inc. (2002), an IT advisory and research service for the healthcare industry, examined system downtime for hospitals.Using three test hospitals’ actual financial, staff-hour, and workload statistics, AC Group quantified the cost of system downtime as follows:• For an average 500-bed hospital, every minute of downtime costs more than US$264. For the average three-hospital integrated delivery network(IDN) with 1,400 beds, a minute of downtime costs more than US$1,000.• Each 1 percent of downtime could cost a 500-bed hospital more than US$1.4 million per year in additional operating costs.• For a 1,400-bed IDN, the cost of each 1 percent of downtime could rise to US$10 million per year.• Availability and reliability have become part of the sing-song of virtually all enterprise vendors.− Providing a truly fault-tolerant, reliable, and highly available solution is extremely difficult and complex You can’t simply bolt new architectural attributesonto an existing infrastructure and declare availability. Does the definition of availability exclude natural disasters? Is planned downtime for upgradesor system maintenance built in or are they performed dynamically while the system is online? What does online mean? System prompt availability orensuring that customers can continuously access services?• The NonStop family now starts with up to "seven 9s" of hardware availability” out of the box—the absolute highest levels in the industry—with the Integrity NonStop TMR (Triple Modular Redundancy) option.− “A five-minute downtime could put a lot of companies out of business. Once you lose a customer, it probably takes four times as much time andresources to recover that business.”— John Sandridge, vice president of operations at Genpass (ATM processing for more than 30,000 ATMs nationwide)• NonStop quietly supports hundreds of the world’s largest businesses and their customers.− SabreSonic uses NonStop to handle pricing and ticketing for major airlines− Sprint run the world’s largest database on NonStop (WinterCorp)− World’s largest ISP runs on Integrity NonStop servers for global messaging− Five of top 6 U.S banks, 6 of Canada’s 9 largest banks, all 3 of Mexico’s top banks use NonStop− More than 60% of world’s financial exchanges use NonStop− 70% of all U.S. 911 calls use NonStop• NonStop has a world-class Support process capable of responding to and tracking problems on a "follow the sun" basis. The GCSC handlesproblems on a 24x7 basis utilizing support centers around the world. There is a well-tested process, honed over 20+ years, that ensures timelycustomer responses/follow. Senior-level resources are identified to handle any level of escalation from major crisis to specific problem issues.• Resources− HP Business Continuity and Availability solutions http://h20223.www2.hp.com/NonStopComputing/cache/76753-0-0-0-121.html2926 September2006

Notes: Slide 6: We need low-costproducts• A recent Standish Group report draws the logical conclusion that Integrity NonStop servers willdeliver better availability at approximately one-half the total cost of ownership (TCO) of the IBMzSeries Mainframe—The Standish Group VirtualBEACON, Issue #387 (June 3, 2005),http://www.standishgroup.com/sample_research/beacon_387.php− “Looking at cost from a one-dimensional point of view, such as the basic cost of hardware, the NonStop servermay appear marginally competitive. But when you add infrastructure software like a relational database—andthe personnel needed to maintain the applications and operate the system—you see that it really is verycompetitive against alternatives that are perceived to be less expensive. When you then add the cost of downtimeto the mix, the value of NonStop servers becomes clear. Our case-based studies support this view. For missioncriticalapplications, the NonStop system is the model against which we try to measure other systems.”—Jim Johnson, chairman, The Standish Group, the leader in independent assessments of IT total cost ofownership• NonStop price/performance improved by 250% with Integrity NonStop servers− On the Intel Itanium price/performance curve− Leverages storage and servers from across HP to reduce hardware R&D and pass the savings on to customers.− “Taking advantage of both the lower cost of standards-based technology and the higher-performance capabilityof Itanium 2, the Integrity NonStop server has up to a 2.5x price/performance edge over the NonStop S-seriesMIPS CPU, reducing transaction costs by 60%. With twice the performance at the same cost of a NonStop S-series system, the Integrity NonStop platform also makes an ideal launch pad for entry-level HA customers thathave always wanted to be fault tolerant, but were afraid of the buy-in point.”—The Clipper Group, June 15, 2005, “HP Gives Green Light to NonStop — Adapts Integrity for FailsafeEnvironments”, Analyst: David Reinehttp://h20223.www2.hp.com/NonStopComputing/downloads/TCG2006054.pdf− World’s largest ISP runs on Integrity NonStop servers for global messaging− More than 40 million mailbox users in a dynamic environment for global messaging− Continually evolving services, all acting as one single virtual application− Result: More than 600 processors managed by only eight administrators over five geographically distributed sites3026 September2006

Notes: Slide 7: We need products that keepus out of the press and out of the courts…• Facing rising share volumes—a 70% increase between July and September alone—the TSE felt it hadlittle choice but to upgrade its system. The new Hitachi trade-clearing system that began operating atthe TSE in January 2006 could only process up to 5 million trades a day, the same as the Fujitsusystem it replaced. However, according to an exchange spokesman, it could more easily beupgraded. The TSE, which lists more than 2,300 companies and handles more than 90% of Japan'sstock trading, has faced growing criticism about its capacity to handle a spike in trade volume. Itcurtailed daily trading hours for several weeks in January 2006 after heavy sell orders threatened toswamp its computer systems. http://www.finextra.com/fullstory.asp?id=14578• Compliance—National, regional, and global regulations, including Sarbanes-Oxley Act, USA PatriotAct, Continuous Linked Settlement, and others, require financial institutions to adapt or face penalties.• “Even a five-minute application outage would result in angry customers and adverse press. We chosethe NonStop server for its impressive availability characteristics, and we have never had problemswith the system.”—Wolfgang Breidbach, head of system services, Bank-Verlag, Germany• Chicago Mercantile Exchange (CME) pioneered electronic trading of futures contracts in 1992, handling“after-hours” transactions when the traditional floor pits closed. In 1997, the exchange moved to 24-hourelectronic trading. A solution of Integrity NonStop servers, StorageWorks XP SAN storage, ServerNet Cluster,and the CME Globex electronic trading platform has the ability to handle peak transaction volumesexceeding 13 million a day, with an average response time of less than 50 milliseconds. The solutionprovides the continuous availability that is critical to the electronic trading business and has been able toscale to handle phenomenal growth (approximately 500 percent in six years).− “Latency has been reduced by approximately 35 percent with the Integrity NonStop server, and I believe we’llsee even greater reduction once our system tuning is complete. As far as total throughput is concerned, we’re notreally sure what that is yet, because we’ve pushed the system as hard as we can and have yet to find the limit.”—John Hart, director of Technology Engineering, CMEhttp://www.homeandoffice.hp.com/erc/library/GetPage.aspx?pageid=332138&audienceid=0&statusid=0&ccid=0&langid=121&ERL=true&pageTitle=Enterprise%20library:%20Chicago%20Mercantile%20Exchange%20(Integrity%20NonStop%20story)3126 September2006

Notes: Slide 8: We need products thatgrows as our business grows…• “NonStop server has demonstrated a 98% scaling efficiency over hundreds of CPUs”—The Clipper Group, June 15, 2005, “HP Gives Green Light to NonStop — Adapts Integrity for Failsafe Environments”[http://h20223.www2.hp.com/NonStopComputing/cache/258745-0-0-225-121.html?jumpid=reg_R1002_USEN]• Electronic payment volumes to double by 2010− A May 2006 study projects the annual number of electronic payment transactions, currently at ~210 billion worldwide, will double bythe end of the decade and is growing at a compounded annual rate equal to four times the expected growth in real gross domesticproduct (GDP). Eastern Europe and Asia-Pacific regions will lead world electronic payment transaction growth, predicted at 21.6percent and 19.2 percent respectively. The Middle East will increase 15.9 percent, and NAFTA (North American Free Trade Alliance)will grow 12.3 percent. The study, sponsored by ACI Worldwide and conducted by Global Insight, Inc., represents the firstcomprehensive, econometric approach to forecasting global payments across countries representing 97 percent of the world’s GDP.[http://www.aciworldwide.com/news/newsdetail.asp?news_id=471]• Massive installations− The world’s largest ISP prides itself on 24x7 "up-time”. HP manages maintenance and support services for more than 15,000 serversfrom multiple vendors, including 9,000 Integrity NonStop, HP 9000, and HP ProLiant servers as well as HP workstations.− Sprint’s NonStop SQL database has been declared the largest in the world—with 2.847 trillion rows of data—in a 2005 independentsurvey conducted by WinterCorp, a prestigious database research and consulting firm. The database row count represents a fivefoldincrease over the largest database winner identified by the same survey in 2003. In 2006, Sprint won the prestigious DM Review 2006World Class Solution Award in the High Availability, Performance, and Systems Management category.— Winter TopTen Programs, http://www.wintercorp.com/VLDB/2005_TopTen_Survey/TopTenProgram.html— 2005 TopTen Award Winners, http://www.wintercorp.com/VLDB/2005_TopTen_Survey/TopTenWinners_2005.asp— DM Review Award, http://www.dmreview.com/article_sub.cfm?articleId=1061197− Chicago Mercantile Exchange (CME), the largest and most diverse financial exchange in the world, handles approximately 70% of itstrades through its Globex electronic trading platform running on Integrity NonStop servers. CME, an early adaptor of new IntegrityNonStop servers, has decided to replace its entire production environment of NonStop S-series servers with Integrity NonStop servers.• “Scalability is a huge issue for us as our order volume continues to grow…. We’ve pushed the Integrity NonStop server as hard as we can, andwe have yet to find the limit.”—John Hart, director of technology engineering at CME− Ten years out of the gate, South African cellular communications leader Vodacom boasts close to 9 million subscribers—significantlymore than its nearest rival in the mobile communications space, and twice as many as the country’s fixed-line monopoly, Telkom SA.• “It’s critical for us to be able to manage the rapid growth and massive volume that continue to characterize our business, and NonStop systemsdefinitely help us do so.”—Ray Oehley, executive head, Billing Systems Division, Vodacom3226 September2006

Notes: Slide 9: We need bullet-proofdisaster recovery• HP has more than 70 disaster recovery facilities worldwide• HP handled more than 50 disaster invocations on 9/11.• HP facilities include fully equipped IT recovery centers, office recovery centers, and satellite recovery centers.• The only other global business continuity services vendor is IBM. SunGard is large in size, but has coverage for nomore than 10 countries (even including the Guardian iT acquisition in Europe).• HP is in the leadership quadrant in in Forrester analysis of disaster recovery service providers.− Forrester puts HP’s disaster recovery services squarely in the leadership quadrant in an analysis of disaster recovery (DR) serviceproviders that assesses the state of both the fixed-site and the mobile recovery markets.− “Once a distant third to SunGard and IBM, HP has been attracting many more customers by aggressively building out infrastructure overthe last three years. HP has invested $100 million in its DR services business and has increased its number of individual sites from 46 to62.2.”—Download Forrester Wave: Disaster Recovery Service Providers, Q1 2006 from the HP Enterprise media center & library[http://h71028.www7.hp.com/erc/cache/107086-0-0-0-121.aspx?erl=true]• NonStop is the only platform in the world that offers an integrated suite of hardware and software products that candeliver disaster recovery through disaster tolerance to our applications without specialized knowledge required by ourprogramming staff. NonStop servers are designed for availability:− For dealing with a failure, NonStop uses takeover: all information needed to pick up right where something left off is available. With a“failover” approach, something takes over the workload, but it has to restart.− NonStop “fail-fast” design philosophy means that as soon as a fault is detected, the system stops that process or componentimmediately, to keep failures from leaking out and spreading.• Resources− NonStop Business continuity and disaster recovery software [http://h20223.www2.hp.com/NonStopComputing/cache/76753-0-0-0-121.html]− Seven minutes to full disaster recovery for the NonStop system at the Ontario Ministry of Health and Long-Term Care[http://h20223.www2.hp.com/NonStopComputing/cache/292869-0-0-0-121.html3326 September2006

Notes: Slide 10: We need products witha future• No notes3426 September2006

Notes: Slide 11: We need openproducts• “HP Integrity NonStop server has been introduced to breathe new life into the environment bybringing standards to NonStop and NonStop to standards.”—The Clipper Group, June 15, 2005, “HP Gives Green Light to NonStop — Adapts Integrity for Failsafe Environments”, Analyst: David Reine[http://h20223.www2.hp.com/NonStopComputing/cache/258745-0-0-225-121.html?jumpid=reg_R1002_USEN]• “As we develop our solutions in the NonStop system environment, we must be able to integrate ourexisting legacy solutions, Web-based applications, and security solutions. The open standards supportof the NonStop system allows us to integrate technologies with minimal customization.”—Terry Dooley, senior vice president of IT and CIO, SHAZAM• The NonStop environment has evolved its interfaces and functionality to allow the porting ofmiddleware and applications from UNIX and Linux systems by the incorporation of the Open SystemServices (OSS) environment. OSS makes it easy to port applications and middleware from UNIX andLinux systems when scalability and 24x7 availability are essential. Standard Java Virtual Machine(JVM), the Apache Tomcat servlet container, BEA WebLogic Server, Web services technologies suchas SOAP, XML parser, and Web Services Description Language (WSDL) are all available onNonStop servers.−−−200+ open source tools, utilities, libraries, and packages have been ported to the Integrity NonStop platformHP offers a toolkit of ready-to-run open source software for the Integrity NonStop servers that provides both a richdevelopment environment and a solutions development infrastructure. With these packages, Linux programmerscan be immediately productive in developing application code on Integrity NonStop servers.Available fordownload at no cost to customer.HP Integrity NonStop open source software Web page [http://opensource.hp.com/nonstop/index.html]• NonStop Open Source SIG• Open Source white paper for software developers3526 September2006

Notes: Slide 13: We need the bestcompetitive products on the market…• The Standish Group draws the logical conclusion that Integrity NonStop servers will deliver better availability at ~one-half the total cost of ownership (TCO) ofthe IBM zSeries mainframe. —The Standish Group, Virtual Beacon Issue 387, June 3, 2005 http://www.standishgroup.com/sample_research/beacon_38• “Even with the new System z9 Business Class announcements from May 2006, where IBM delivered a smaller z9 mainframe with substantially lower prices,HP can still out-compete IBM for dollars in data centers in established customers in North America and Europe and in fast-growing, emerging markets in Asiaand Eastern Europe.”—HP Scales Down NonStop Servers to Chase New Customers, IT Jungle, Timothy Prickett Morgan, June 6, 2006http://www.itjungle.com/breaking/bn060606-story01.html• Sabre Holdings, the largest global travel distribution system, built a truly open system environment by moving its most transaction-intensive applications fromlegacy IBM TPF to the open NonStop platform.− “Open systems like the NonStop server are needed for flexibility, both in terms of making changes at a lower cost—reducing total cost of ownership—and shortening time to market for new features, products, and services.”—Gianni Marostica, president, Sabre Airline Passenger Solutions• Shazam, the sixth-largest EFT network in the United States, decided to migrate its core switching business, card authorization services, terminal drivingbusiness, and key customer enhancement modules from legacy mainframes to NonStop to add value to products and services—making it possible to competeon more than price alone.− Expects 30% cost savings− “As we develop our solutions on NonStop, we must be able to integrate our existing legacy solutions, Web-based applications, and security solutions.The open standards support of the NonStop system allows us to integrate technologies with minimal customization.” —Terry Dooley, senior vicepresident of IT and CIO, SHAZAM• São Paulo Stock Exchange (Bolsa de Valores de São Paulo, or BOVESPA)− BOVESPA, the major stock trading center in Latin America, relies on NonStop running the NSC Trading System from Euronext, combined with HPAlphaServer systems, which act as a hub. The HP solution displaced an IBM mainframe-based solution. Before installing the NonStop servers, BOVESPAhad been facing some problems: frequent downtime (planned and unplanned) in its IBM mainframe-based solution, and data corruption that hadalready affected its business and created many constraints for its IT and management people. The brokers, who basically own BOVESPA, weredemanding a solution that would guarantee business continuity; after some research, the exchange selected Euronext NSC on the NonStop platform.The successful implementation of the Brazilian Payment System (SPB) on an HP-Intel-Microsoft Platform in April 2002 helped Bovespa make the decisionto migrate all of its business applications—previously running on Sun servers—to a new IT environment.• “There is a large segment of smaller enterprise customers that tends to be priced out of market for high-end, fault tolerant servers. For those customers theIntegrity NonStop NS1000 Server offers significant value, and additional choice for application availability and fault tolerance.” —Stephen L. Josselyn,Research Director, IDC• Resources− The Real Story about the IBM Mainframe http://h71028.www7.hp.com/erc/cache/110448-0-0-225-121.aspx?jumpid=reg_R1002_USEN− “Digging the TCO Trenches,” Standish, 2004: A Standish Group Research Note http://h20223.www2.hp.com/NonStopComputing/cache/76976-0-0-225-121.html?jumpid=reg_R1002_USEN3626 September2006

Notes: Slide 15: HP Integrity NonStopserver beats IBM on pricing and value• This slide shows the relative pricing of Integrity NonStop systems andequivalent IBM single and Parallel Sysplex mainframes when you lookat a basic five-year total cost of ownership comparison.• The numbers are based on configurations put together to handle thesame transactional workload and include five-year support costs(hardware and software) for a basic five-year comparison• The configurations have an equivalent amount of storage and have thefull stack of software required to support the application, including DB2and WebSphere.• The hardware configurations for IBM also include their latest lessexpensivezAAP processor for Java applications and their Linux ILF.• The picture gets even better if you look at the complete applicationenvironment, including application development and deploymentcosts—and better still if you add in the cost of downtime.3826 September2006

Notes: Slide 16: HP Integrity NonStopNS1000 TCO advantages• This slide shows The Standish Group statistics (2006)comparing the relative total cost of ownership (TCO) ofIntegrity NonStop NS1000 systems with clustered opensystems (IBM, Sun, Wintel).3926 September2006

Notes: Slide 17: We need products thatmatch our multi-tier architecture…• Designed to work in an open systems environment, the NonStop operating system supports interoperability with a variety ofsystems, including those running Microsoft ® Windows NT ® , UNIX ® system software, or IBM mainframes. It provides industrystandardX/Open ® UNIX system–compliant interfaces for application development and production, as well as extends theadvantages of NonStop systems—including continuous availability, data integrity, distributed data and processing, and linearscalability—to every level of application processing.• Massive database consolidation in hybrid environment− Military Manpower Administration (MMA), responsible for keeping track of military service information in South Korea, moved theapplication into an open, industry-standard Web- and Java-based environment with NonStop servers for its headquarters facility and 13branch offices. Now, MMA is perform a massive consolidation of data from the 14 distributed systems into a single NonStop SQL/MXdatabase running on the Integrity NonStop platform. The next phase of the project will involve a 16-processor HP Integrity Superdomeserver, which will be used to run BEA Business Process Management (BPM) software. This hybrid solution will also leverage multiple HPProLiant (DL380) and other (rx8620, rp7420, rp4440, rp4410) servers.− “MMA requires massive, real-time database management for next-generation service. Integrity NonStop and Integrity Superdomeservers, together with high-end XP SAN storage, create a powerful system that will meet the customer’s needs for many years to come.”• MiddleSolve Payer Information Manager, a modular EDI healthcare claims processing and management system from edisolve[www.edisolve.com] can be configured in a number of flexible ways, including a hybrid architecture in which critical informationand applications are kept in the trusted Integrity NonStop server environment and less-critical elements are run on low-cost Linux,Microsoft Windows, or UNIX based servers.−The solution is designed to deliver the cost savings and efficiencies promised by HIPAA regulatory reform, addressing the completelifecycle of payer EDI requirements and automating the means for payers to collect claims directly from providers.http://h20223.www2.hp.com/NonStopComputing/cache/354399-0-0-0-121.html• Simdesk World Wide Server provides population-based computing to telecommunications companies, governments, andcommunities in first world and emerging markets, educational institutions, and small-to-medium sized businesses. Run exclusivelyon Integrity NonStop servers in a hybrid environment with Linux blades, the Simdesk World Wide Server allows Simdesk servicesusers throughout the world to access and share files, data, e-mail, and photos using any device that can access the Internet,including cell phones, pocket PCs, and shared desktop devices.• Resource− HP Integrity NonStop servers family guide www.hp.com/go/integritynonstop/familyguide4026 September2006

Notes: Slide 18: We need products thatare easy on our IT staff…• NonStop systems are built with transparent, automatic, andself-healing functionality that results in lights-out processing.• Resources• NonStop Services & Support:http://h20223.www2.hp.com/NonStopComputing/cache/76356-0-0-0-121.html4126 September2006

Notes: Slide 19: Q: Why buy HPNonStop?• This slide provides an overview of the second part of thepresentation and sets up the slides to follow.4226 September2006

Notes: Slide 20: We need a vendor thatunderstands financial services…• The world’s largest financial institutions use NonStop, including the five largest U.S. banks. NonStop serversprocess more than 60% of the world’s equity (stock) transactions and automate 64 of the world’s largestexchanges.• Real Time Financial Solutions: Customer Snapshots−−Rabobank entrusts its core applications—including ATM, statement printing, customer relationship management(CRM), clearing and settlement, and Internet banking—to the NonStop platform.• “Rabobank is primarily an Internet bank. If the service isn’t available, you don’t have customers. That’s why the continuous availability of theNonStop platform is so vital. We have separate applications for telebanking, stock market trading, ATM management, and other services, allrunning on the NonStop platform. Online Integraal (OLI) is one of the busiest websites anywhere. It sees approximately 9 million hits per day. Allbranch-based personnel—more than 20,000 people—use the application, because when a customer walks into the branch, OLI puts all thepertinent information at that customer’s fingertips.”—Diederick de Buck, systems programmer and technical architect at RabobankBank Verlog provide services for German private banks, authorization for Eurocheque-card transactions at ATMsand POS terminals worldwide as well as account register, PIN-letter productions,and electronics banking. Atpeak, more than 2 million transactions per day are run on NonStop servers.− The fastest-growing EFT/ATM processor in the U.S., Genpass manages a network of 28,000+ ATMs in all 50states, and handles 3.5 million cardholder accounts and ~360 million transactions per year. The company’s fourdivisions—Technologies, Service Solutions, ATM Solutions, and Card Solutions—all rely on the NonStop platformand ProLiant servers.−−• Resources−Chicago Mercantile Exchange (CME), the largest and most diverse financial exchange in the world, handlesapproximately 70% of its trades through its Globex electronic trading platform running on Integrity NonStopservers. CME, an early adapter of new Integrity NonStop servers, has decided to replace its entire productionenvironment of NonStop S-series servers with Integrity NonStop servers. “Scalability is a huge issue for us as ourorder volume continues to grow…We’ve pushed the Integrity NonStop server as hard as we can, and we have yetto find the limit.”—John Hart, director of technology engineering at CMEOne of the largest regional electronic funds transfer (EFT) networks in the United States, NYCE Corporationprocesses more than 1.5 billion transactions a year on NonStop systems.Compendium of Success for Integrity NonStop servershttp://h20223.www2.hp.com/NonStopComputing/cache/262681-0-0-225-121.html?jumpid=reg_R1002_USEN4326 September2006

Notes: Slide 21: We need a vendor thatunderstands telecommunications…• Home Location Register (HLR)− HP OpenCall HLR, running on NonStop servers, maintains more than 200 million licensed subscribers across 25 countries on five continents. NonStop was the world's firstto support HLR with both ANSI-41 and GSM protocols on the same platform.− HP is fourth in global market share for HLR and NonStop is HP’s the leading platform for HLR in North America (Venture Development Corporation study - May 2005).Brazil´s (and the Southern Hemisphere´s) largest mobile operator, Vivo, runs HLR on NonStop.• Location Based Services (LBS)− HP has deployed more high accuracy LBS solutions than any other company in the world, all on NonStop servers.• Multimedia Messaging Services (MMS)−Japan has the world’s largest MMS traffic volume—and the leading Japanese provider runs on Integrity NonStop servers. "Mobile messaging has become indispensablefor life in Japan. As the nationwide leader in delivering next-generation mobile phone services, KDDI requires an infrastructure that not only provides the industry’shighest level of availability, but also is capable of growing seamlessly in response to our rapidly expanding customer base…The Integrity NonStop server effectivelyaddresses our three primary business challenges: cost, reliability, and speed of development.” —Teruaki Homma, head of System Development at KDDI• Verizon’s Usage Management System−• Mobile E911−−Verizon Information Technologies LLC’s [http://www.VerizonIT.com] Usage Management System (UMS) software processes data for telecommunications billing purposesin the new “triple play” environment of voice, data, and video. Just beginning production with a large Asian telecommunications firm, the Integrity NonStop server–basedUMS system incorporates techniques such as a rule-based engine, user table access, and user-interactive PC-based tools to increase the flexibility of user-controlledchanges. This functionality also accommodates converged usage collection, mediation, and tariffing processing for a growing range of wireline, wireless, and InternetProtocol (IP) products and services.HP supplies the network infrastructure for mobile E911 emergency and commercial LBS for over 80% of CDMA Network Operators in North America.HP enabled Sprint PCS to be the first wireless carrier in the U.S. to meet the FCC Phase 2 mandate for e911, with a solution running on NonStop servers. HP alsoreceived the Innovative Solutions Award from the CDMA Development Group (CDG) for its CMDA e911 solution running on NonStop servers.• Sprint piles up awards with NonStop technology−−−• Resources−−Sprint won the prestigious DM Review 2006 World Class Solution Award in the High Availability, Performance, and Systems Management categoryhttp://www.dmreview.com/article_sub.cfm?articleId=1061197In 2005, Sprint was named first-place winner for the largest database in the world in the Winter TopTen Program for its NonStop SQL database implementation,comprising more than 2.847 trillion rows—nearly twice the size of second-place winner AT&T Labs Research and a fivefold increase since the last program wasconducted in 2003. http://www.wintercorp.com/VLDB/2005_TopTen_Survey/TopTenProgram.html"NonStop technology is at the heart of our business, powering Sprint's most critical applications. The new Integrity NonStop server, now with its more affordablestandards-based architecture, ensures our investment is protected, and that we're able to count on the highest levels of availability, scalability, data integrity, andresponse time, helping us to provide our customers with the highest levels of service.” –Andrew Davey, senior manager, Network Systems and Computing Design, SprintNonStop Telecommunications: http://h20223.www2.hp.com/NonStopComputing/cache/76793-0-0-0-121.htmlNonStop Telecommunications brochure: http://h71028.www7.hp.com/ERC/downloads/4AA0-7243ENW.pdf4426 September2006

Notes: Slide 22: We need a vendor thatunderstands healthcare…• MiddleSolve Payer Information Manager, a modular electronic data interchange (EDI) healthcare claims management and electronic funds transfer system fromedisolve.com, is the newest solution powered Integrity NonStop servers.− Designed to deliver the cost savings and efficiencies promised by HIPAA regulatory reform, MiddleSolve Payer Information Manager addresses the complete lifecycle ofpayer EDI requirements and automates the means for payers to collect claims directly from providers.• Crossflo DataExchange Version 3 (CDX3) provides a rapid, scalable, effective, and affordable way to enable the immediate sharing, integration, andaggregation of an organization’s data assets regardless of platform, vendor, or location.− The technologies utilized include industry-standard and well-accepted tools and approaches for securely handling information sharing initiatives. CDX3 offers a servicesoriented,information-sharing layer between data sources and users, enabling important applications such as federated queries, data warehouses, and analysis enginesand runs on all Integrity NonStop platforms. The solution can also act as a data acquisition tool for moving data to a data warehouse, performing extraction, cleansing,transformation, and loading of data into a warehouse, or display information in a Web portal, or exchange data between different operational data stores.• "Healthcare has seen huge changes since GE Healthcare (formerly IDX) took the first steps toward making the permanent electronic patient record a reality.One thing that hasn’t changed is that the open NonStop platform continues to deliver the lowest TCO for enterprise computers, with the unparalleledavailability, scalability, and data integrity that patient safety demands.”—Mark Wheeler, chief technical architect, GE Healthcare (formerly IDX)• Montefiore, a 1,062 bed medical center, teaching hospital, and research facility in New York, ranks among the top 1 percent of all U.S. hospitals, based onits investments in medical innovation and cutting-edge technology.− Montefiore uses GE Healthcare Centricity Enterprise (formerly IDX LastWord) to achieve a 70% reduction in medication errors and to free up 33% of the pharmacists’ timeand 50% of secretaries’ time because they don’t need to hand-enter physicians’ orders. Montefiore nurses save an hour a day just by receiving paperwork electronically,and the medical center’s annual productivity savings are conservatively estimated to exceed two and a half million U.S. dollars.• Continuum Health Partners is one of the largest hospital systems in New York, with four academic medical centers and several ambulatory clinics.− Serving more than 100,000 inpatients and approximately 1.3 million outpatients each year, Continuum selected the GE Healthcare Centricity Enterprise (formerly IDXCarecast) enterprise clinical system running on the NonStop platform to integrate its online medical data. Carecast—from IDX Systems Corporation—brings togetherelectronic patient data, clinical documentation, and computerized physician order entry (CPOE) capabilities throughout the Continuum network. The three largestContinuum acute care hospitals will use Carecast for CPOE.• PeaceHealth is an integrated delivery network that comprises six hospitals in Alaska, Washington, and Oregon.− PeaceHealth implements the GE Healthcare Centricity Enterprise (formerly IDX LastWord) clinical information system on the NonStop system. As a result, the amount oftime that nurses spend on clinical documentation was cut in half, freeing an additional 1and 1/2 hours in a 12-hour shift. PeaceHealth runs about 1.4 million transactionsa day with half-second response time.• Lehigh Valley Hospital and Health Network (LVHHN) is a 750-bed three-hospital acute care system in Pennsylvania.− LVHHN uses GE Healthcare Centricity Enterprise (formerly IDX LastWord) enterprise clinical system running the NonStop platform for a host of critical functions, includingmedication administration, admissions and registration, computerized physician order entry, patient accounting, and a pharmacy application. Within 18 months ofimplementation, LVHHN gained more than US$120,000 in revenue by correcting inaccurate insurance information, and reduced headcount by 25 percent through attritionand reallocation of resources. LVHHN also piloted an innovative wireless bar-code system developed by IDX. The system enables clinicians to chart medications usinghandheld wireless scanners that read bar codes on medication containers and patient ID bracelets.• Resources− NonStop solutions for healthcare: http://h71028.www7.hp.com/ERC/downloads/4AA0-0146ENW.pdf4526 September2006

Notes: Slide 23: We need a vendor thatis viable…• June 2006: For the 16th consecutive quarter, HP has outshipped allother major vendors in the worldwide server market, according to firstquarter 2006 figures. HP assumed the number one spot for total serverrevenue, taking share from IBM and moving into a statistical tie for theleadership position. HP is also number one in worldwide revenue forthe Windows ® , UNIX ® , Linux, x86, x86-64, AMD Opteron, andIntel ® Itanium ® based server markets.http://www.hp.com/hpinfo/newsroom/press/2006/060524a.html?jumpid=reg_R1002_USEN• “HP has seen a remarkable resurgence in its shares—up 30 percentover the past 12 months—as almost all of its business segments havereacted favorably to more focus and restructuring efforts.”—Louis R. Miscioscia, Cowen and Company analyst, Red Herring,8/16/06• With US$86 billion in revenue for fiscal year 2005, HP is one of thestrongest IT companies in the world today. As a Fortune 11 company,it has operations in 178 countries and occupies a leadership positionin virtually every market, customer segment, and region.4626 September2006

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