HP Helps Armed Forces Communications and Electronics Association Improve Operational Efficiency, Reduce Carbon Footprint

PALO ALTO, Calif. — (BUSINESS WIRE) — August 2, 2010 — HP (NYSE: HPQ) today announced it was recently selected by the nonprofit Armed Forces Communications and Electronics Association (AFCEA International) to dramatically reduce the physical and carbon footprint of the organization’s infrastructure while enabling its computing resources to grow.

By implementing HP solutions, AFCEA International transformed its entire data center infrastructure – which supports email, financial operations, customer websites, and internal and external portals – into a virtualized environment. The technology helped streamline operations, resulting in a reduction of energy consumption and space requirements, while enabling AFCEA International to reduce power and cooling costs by 50 percent.

As a result of consolidating its infrastructure from 12 servers down to two principal servers and two backup servers, AFCEA International’s staff now spends less time maintaining the infrastructure. In addition, AFCEA International’s virtualized environment allowed for an increase in server utilization from 10 to 60 percent per server, further reducing the need for additional physical servers. It also delivers the flexibility to set up new servers on demand and permits operations to automatically failover, which has substantially reduced downtime.

“We had reached the limits of power capacity as well as space in our current data center in addition to using auxiliary units to keep up with demand, which was unsustainable and costly,” said Jim Griggs, chief information officer, AFCEA International. “HP enabled us to keep our data center within tight space constraints, stay within our limited operating budget and reinvest the cost savings to further drive our mission.”

“Streamlining data center operations is a critical component in managing budgets and aspiring to environmental conservation for many nonprofit organizations,” said Tom Hempfield, vice president, U.S. Federal Business Organization, HP. “Drawing on our experience transforming data centers, HP was able to develop an innovative solution for AFCEA International that enabled them to reduce carbon emissions in their current space even as they continue to grow.”

Consolidating infrastructure to reduce costs

AFCEA International drove further efficiencies by using HP solutions to consolidate its imaging and printing infrastructure to almost one-half the previous size while also making gains in printer capacity and quality.

Installing HP multifunction printers that deliver scanning, faxing and full digital sending capabilities reduced the need for more hardware. Additionally, adopting high-volume, high-quality HP Color LaserJet CP6015xh Printers permitted AFCEA International to develop more of its own magazine’s proofs in-house, further reducing costs.

Reduced costs allow for accelerated upgrades

The overall cost savings from the imaging and printing infrastructure consolidation allowed AFCEA International to upgrade its entire infrastructure within an accelerated timeframe of one year. This exceeded AFCEA International’s initial expectations, which were to accommodate an annual 20 percent upgrade path per year over a five-year period.

HP provided power-efficient HP BladeSystem c3000 enclosures, HP StorageWorks 4400 Enterprise Virtual Arrays (EVA4400) and HP ProLiant server blades, reducing the number of AFCEA International’s servers by 66 percent, while reducing combined energy and operational costs by 74 percent. Through cost savings, AFCEA International was able to invest in backup servers, creating a failover system that ensures the high availability its previous infrastructure lacked.

This collaboration continues a 29-year relationship in which HP has helped AFCEA focus on its mission of providing a forum for the ethical exchange of information among government, industry and academia.

HP completed its own data center transformation in December 2008, consolidating 85 data centers into six data centers in three locations and saving more than $1 billion a year.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.

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; any statements regarding 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 macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2010 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 October 31, 2009. HP assumes no obligation and does not intend to update these forward-looking statements.

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