HP Announces Strategy to Expand Its Software-as-a-Service Offering

PALO ALTO, Calif.—(BUSINESS WIRE)—October 15, 2007— HP (NYSE: HPQ) today announced plans to expand its Software-as-a-Service (SaaS) offering across its Business Technology Optimization (BTO) portfolio to help customers quickly and cost-effectively maximize the value of their software implementations.

The HP BTO software portfolio helps customers better manage their IT projects and services, ensure the quality and performance of their IT applications, and monitor their online businesses.

SaaS, also known as software "on demand," is a model in which software is developed, hosted and operated for use by customers over the Internet. Customers do not own the software itself, but rather pay to use it.

HP plans to offer IT Service Management through the SaaS delivery channel, in addition to its current offering of Business Availability Center, Quality Center, Performance Center and Project and Portfolio Management Center products.

HP's SaaS customer base now includes more than 670 companies, both large and small and in a variety of industries. These customers include Elsevier (publishing), Cardinal Health (healthcare), Lafarge North America (manufacturing), Akamai Technologies (information technology) and DBS Bank (financial).

As part of its SaaS offering, HP deploys experts to help customers remotely manage the performance and availability of business-critical applications. Since customers do not have to make long-term investments in technology infrastructure or staff training to use HP SaaS, it can help free up scarce IT resources to focus on other priorities. Customers can begin using software delivered through HP SaaS in a matter of weeks and, therefore, receive business benefits from their IT initiatives faster.

"HP SaaS enables customers to immediately gain the benefit of our software without significant start-up costs and training," said Marc Olesen, vice president, Software-as-a-Service, HP. "With our BTO software offering, customers can focus on their critical IT business initiatives while HP focuses on enabling their IT organization to operate more efficiently."

HP Business Technology Optimization solutions available through SaaS

HP Software BTO solutions that are available via SaaS today include:

-- Business Availability Center - Manages the health of business services and applications and optimizes their availability, performance and effectiveness.

-- Quality Center - Governs quality processes, automates software testing across application environments and manages the release process to enable better informed decisions.

-- Performance Center - Assists with the analysis and validation of application performance against business requirements and mitigates the risk associated with application deployment and upgrades.

-- Project and Portfolio Management Center - Standardizes, manages and captures the execution of project and operational activities, and provides critical information to assist real-time decision making.

"The value of IT management software is not derived from its deployment," said Ray Paquet, managing vice president, Gartner. "Rather, the benefit comes from its use. Software-as-a-Service helps organizations quickly unlock the value to the business."

Deploying HP BTO offerings via SaaS can help customers by:

-- Offering a pre-deployed infrastructure and team of experts;

-- Mitigating risk associated with installation, performance, testing and other foundation activities;

-- Maximizing the full value of HP software products through best practices and ongoing mentoring;

-- Enabling customers to focus on their business while HP runs the solution; and

-- Offering a choice between SaaS or on-premise deployments. For example, regardless of their organizational maturity, businesses can rapidly adopt and implement HP solutions using HP SaaS for BTO with the option to go on-premise in the future.

"Elsevier relies heavily on the performance and availability of online business services to meet the needs of our customers," said Graham Ledger, support manager for ITSM tools at Elsevier, a leading global publisher of scientific journals in Europe. "We needed to ensure that our customers were not the first people to identify and report any performance or availability issues with critical business services. HP SaaS has given us the ability to rapidly move from monitoring 'boxes and wires' to the performance of our core business processes."

"We use HP SaaS for end-user availability monitoring of numerous key internal and externally facing applications aimed at improving people's lives," said Don Jackson, performance engineering architect for Cardinal Health, an Ohio-based provider of products and services to the healthcare industry. "HP's pre-deployed infrastructure and team of experts help ensure that we are notified immediately with actionable information upon critical application failures and slowdowns."

"We were drawn to software as a service at the beginning of a major ERP project," said Caleb Wood, vice president, enterprise infrastructure, Lafarge North America, a diversified supplier of construction materials in the U.S. and Canada. "HP SaaS provided rapid turnaround without spending time on additional infrastructure or building in-house skill sets. The decision to use SaaS instead of on-premise was obvious because we could derive the value immediately as well as enjoy the freedom of flexibility as our business and technology evolves."

"HP helps our organization validate performance improvement and quality of doing business over the Internet," said David Hale, solution advisor, Akamai Technologies, a Massachusetts-based service provider for accelerating content and applications online. "HP SaaS confirms that Akamai acceleration services optimize the performance and availability of our customers' content and applications. Using a third party service like HP SaaS is an important method for reinforcing our business value."

"In order to ensure our credit card system functions at the optimum level, we tap on HP's quality management offerings to manage and track application defects," said Ms. Tan Hui Kheng, senior vice president, DBS Bank, a Singapore-based financial institution. "By utilizing the offerings through HP SaaS, we have been able to achieve cost and resource efficiencies, enabling us to focus on strategic projects for the business."

More information about HP SaaS and HP Business Technology Optimization offerings is available at www.hp.com/go/saas and www.hp.com/go/btosoftware, respectively.

About HP

HP focuses on simplifying technology experiences for all of its customers - from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world's largest IT companies, with revenue totaling $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP is available at www.hp.com.

Note to editors: More news from HP, including links to RSS feeds, is available at www.hp.com/hpinfo/newsroom/.

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 execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 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 Oct. 31, 2006. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 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.

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