HP Software BSM Value Path: End User Management Campaign

1. HP Software BSM Value Path:End User Management Campaign HP Software EMEA October 8, 2008

2. Agenda • The opportunity in the commercial market space • Business Class & Value Path programs • HP Software Value Path for BSM • End User Management: Monitoring Business Services from the user perspective • How to sell • Sales cycle • End User Management Campaign • Deliverables • Execution • Engagement • Call-to-action to country teams

3. The Opportunityin the Commercial Market Space

4. HP Software Approach to the Commercial= HP non-named Market Space HP Software is commited to aggressively grow joint revenues and expand market coverage in the commercial space = HP non-named Profile: 1000 employees+; 25+ IT, 50+ Server 100% dedication of this market to partners HP Software Value Path • Commercial space status-quo • Represents 43%+ of EMEA IT Spending (BTO-adressable) • FY09 HP EMEA is moving over 1000 customers from named to non-named space • Fastest growing segment • Biggest growth opportunity for HP and partners, based on • Market saturation • Customer Maturity • Commercial space customer needs • Solutions and technologies • Driving short-term business revenue • Highly flexible – ready to use - to support change and help grow • Helping to gain competitive advantage • Slim and predefined processes • Help increase efficiency and lower cost • Driven by best practice approach (e.g. ITIL) • A supplier = trusted partner “next door” • Providing end-to-end solution and services offering including consulting, implementation, support

5. HP Software Value Path HP Software Value Path Business Class A program which defines the joint go-to-market model between channel and HP Software Direct A phased approach to IT solution maturity offering a step-by-step route to value and ROI. HP Software Value Path CorporateAccounts 650 Key NamedAccounts Commercial Territory (non-named) SMB Commercial Market The sales territory defined by non-named accounts in the middle-sized enterprise space Market for partners Marketing Campaigns Engagement Model

6. HP Software Value PathEnd User Management:Monitoring Business Services from the user perspective

7. HP Software solutions for business service management 1 Consolidated operations Consolidate management of all operations fault and performance events 2 Automated Network Mgmt as a “Service” Manage networks as series of services, not elements. Automate network config and compliance enforcement 3 End user managementMonitor and measure the service quality of the user’s experience 4 Service Impact Analysis Discover and map dependencies to Understand the impact of events on Infrastructure and business services 5 Service Level Management Measure the performance of services Over time in terms that the business Understands and cares about HP Software Value Path IT Service Mgmt Incident & Problem Processes Service Level Management Service impactanalysis 4 5 4 Automated network management Consolidated operations End user management 3 1 2 Manual ad-hoc network management Multiple domainmanagers

8. End User - Heterogeneity and complexity Perception vs. Reality Perception Reality

9. The five monitoring myths Myth 1: If you monitor everything, you will understand the customer experience Myth 2: We’ve got things covered. We’ll just respond to the few customer calls when they come in Myth 3: If I can ping the website, then it’s performing well Myth 4: When there is an application problem, we know exactly who to assign the ticket to Myth 5: By reporting infrastructure service levels, IT is fully aligned with the business

10. Myth 1Even if you monitor everything, you still miss the end-user perspective 99.1% 99.4% 99.1% 99.4% 99.3% 99.2% 99.8% Claims Processing 82.0% Customer Perspective MVS Unix SQL Server Network Middleware WEB Database • With siloed monitoring, although system availability may look “green”, end users may still be impacted • Business is upset since you are using your customers as monitoring devices • Result: customer experience and revenues suffer

11. Myth 2We’ve got things covered. We’ll just respond to the few customer calls as they come in.

12. Myth 3If I can ping the website, then the application is working well • Just because you can ping the entry point into the transaction, doesn’t mean that the transaction is working well

13. Myth 4When there’s an application performance problem, we know exactly who should get the ticket Forrester – “80% of the time is spent finding the problem area” Ziff-Davis – “the average performance problem hits 10 different groups”

14. Myth 5By reporting infrastructure metrics, IT is fully aligned with the business Business: What does that mean? Can users book a ticket online? IT: The router’s down Communications Gap • Knowing what a router is doing is nice, but a router has never paid a bill • IT needs to measure and report on what the business cares about and pays IT for

15. Top IT Priorities for 2008 IDC Report #209092

16. Exploding the myths: what’s needed Myth 1: Infrastructure monitoring is not enough monitor customer experience Myth 2: See poor user experience before our customers do proactive alerting Myth 3: Understand health of each step in the user transaction complete business process capture Myth 4: Allocate problems to the right group end-user performance drill-down Myth 5: SLAs that are meaningful to the business end-user based SLAs (not IT metrics)

17. EUM Components:BPM & RUM

18. Monitor the customer experience Complete end-user monitoring Synthetic Real-user

19. Synthetic user experience Synthetic User Switzerland LaunchScript Report +Alert Synthetic User United States Step 1 Step 2 Step 3 Synthetic User Singapore Benefits Description • Simulated users run scripts at regular intervals from multiple locations • Proactive notification when no one is using the service (i.e. before banks open) • Create business-centric SLAs • Measure from multiple locations

20. Real-user experience Report +Alert Step 1 Step 2 Step 3 Description Benefits • Captures the actual user experience, with step-by-step screen shots • Protects user privacy • Provides insight into real user behaviour patterns • Improves triage processes • Quantify user and business impact

21. Performance Over time by Geography Pinpoint Offending Transaction Dynamic Real-time visibility for application performance Correlation and trending for real behavior and performance impact Combined monitoring – high visibility Synthetic monitoring Real-user monitoring PREDICITIVE AND DYNAMIC VIEW 21 29 November 2014

22. Side-by-side comparisonSynthetic and real-user monitoring

23. Business-aligned service level reporting Service level reports are automated and show real-time information Real-time service level reporting to prioritize based on business criticality Trend views to proactively identify breaches over time 29 November 2014

24. Banishing the myths once and for all Myth 1: Infrastructure monitoring is not enough need to monitor customer experience Myth 2: See poor user experience before our customers do need proactive alerting Myth 3: Understand health of each step in the user transaction complete business process capture Myth 4: Allocate problems to the right group end-user performance drill-down Myth 5: SLAs that are meaningful to the business business-centric SLAs (not IT metrics)

25. End User Performance - BSLAs that deliver Solution Result Challenge • BAC reports are used to correlate infrastructure performance to user performance • SLAs have become an IT to Business alignment vehicle • With BAC-based SLA templates in hand, business owners felt engaged with IT End User • Management • Service Level • Management • IT performance reports had little to do with user experience and business strategy • Recurring performance issues affected high value customers • System event monitors detected failures, but didn’t detect imminent failures “ Within 30 days we had the service level framework defined for 14 applications. After 90 days we saw performance improvement of 15% on three core applications and a 5% increase in application availability .” FIRST HORIZONNATIONAL CORPORATION Adam Healy, Application Performance Mgr. 25

26. EUM How to sell

27. Target Buyers/Influencers buyer buyer Business Owner influencer influencer 27 29 November 2014 HP Private - Do not copy or distribute

28. Issues and pain they face • Business Owner / Business Operations • I lose customers before IT starts to respond to app performance problems – why are my customers “a monitoring device” for IT? • IT takes ages to solve app performance problems • I can’t figure out why I’m paying so much to IT • VP IT Operations • Accused of being “unaligned with business” because “customers are used as monitoring devices” • App performance problems get “allocation ping-ponged” and take ages to solve  high business impact of IT failure • OpsBridge pass app performance problems straight to costly app experts without adding value • Can’t show the business the value IT ops adds Business Owner • Application Operations Manager • Ops Bridge adds no value for app performance problems  gets thrown to us, even if it’s not our fault • Takes ages to diagnose app performance problems • Don’t get proactive notification of performance problems – only get told when customers are complaining • Ops Bridge Manager • With 50% of app performance problems, we get no events – it’s the customers that tell us! (Forrester) • When there is an app performance problem, it is difficult and time-consuming to figure out which team to give it to. Get accused of adding no value. 28 29 November 2014 HP Private - Do not copy or distribute

29. EUM addresses the issues and pain • Business Owner / Business Operations: Influencer • Customers “not used as monitoring devices” • App performance problems fixed faster  less customer impact • Get service level reports in terms they understand (e.g. time to check-in online)  “data based” relationship with IT • VP IT Operations: Buyer • Start working on performance problems ahead of when customers notice  less customer impact • Allocated app performance problems to the right group, first time  faster fix time and more efficient IT ops • Application support solve application problems faster  faster fix time • Able to report service performance levels to business in terms they understand Business Owner • Application Operations Manager : Buyer • Ops Bridge is able to add more value  less wastage of app experts’ time • Incidents only allocated to app experts when it’s really an app problem  less wastage of app experts’ time • Better able to find app faults because of diag tools  app fixed faster  less customer impact • Ops Bridge Manager : Influencer • Proactive notification event when threshold is breached  start on problem before customers notice  less customer impact • Allocate app performance problems more quickly and accurately  fix faster and more efficient use of 2nd level support 29 29 November 2014 HP Private - Do not copy or distribute

30. Value Path for EUMSales Cycle:

31. Sales Cycle: End User Management • Moving the deal toward $1m: • Initial deals start small (typical footprint) • 1 or 2 applications • BPM (75% of the time) • Often combined with SAM • Follow on deals include 2 – 3 more apps • 3 – 6 months • Opportunity for RUM, SLM, & PI • Requires time for customer to see trends with BPM • EUM services can be ~40% of licenses • EUM is an expanded opportunity for partners selling OpenView 1: Qualify 2: ID Oppty 3: Demo 4: POC 5: Close 6: Upsell 3 – 6 month Plan: 2 - 3 month initial cycle Proven Cycle Steps: • Qualification Assessment: 2 weeks • Need; Interest; Budget • Plan Initial sales call: 1 week • Sr. Directors/VP IT Operations • Sometimes CIO • Focus on application services owners • Managing and monitoring applications • Schedule Demo: 2 – 3 weeks • Schedule POC: 4 – 5 weeks • Assumes budget is available • Close initial EUM sales • BPM and SAM • 1 application (~$100k USD / 64k Euro) • EUM Upsell: 3 - 6 months • 3 applications (~$200k to $300k USD / 128k to 192k Euro)

32. EUM Marketing Campaign

33. Campaign Objectives and Audience • Objectives: • Introduce HP's full BSM capabilities to midmarket customer segment • Drive demand for upsell of BSM End User Management solution • Target Segment: • Existing HP Operations Center and Network Management Center customers that have not yet invested in BAC  • Target Buyer: • Owner of application service quality, reach through IT operations management • Value Proposition: To manage customer experience, IT operations need to gain visibility into end user service performance. This cannot be achieved by simply monitoring the infrastructure.

34. Key Campaign Highlights BSM Value Path – End User Management EUM eDM EUM landing page Download 5 Myths WP Register for Live demo Value Path landing page

35. EUM eDM and Landing Page

36. Channel Partner Deliverables & Information https://h20229.www2.hp.com/partner/protected/channel/emea/vp-bsm.html Enablement: BSM curriculum and technical enablement checklist

37. HP EUM Campaign Rollout Calendar Lead follow-up& execution local campaign October 8: Partner Briefing • Business Class partner briefing • Confirmation on campaign participation to local PAM by October 15 w/c Sept. 29: kick-off of HP campaign execution • HP Software Direct Reps and PAMs briefing • eDM e-mailing: Sept 29 – phased approach for regions September:HP campaignkick-off September October & ongoing

38. Next Steps • All partner deliverables are available on Partner Central • If you wish to implement your own EUM Value Path campaign please confirm with your PAM via email by Octber 15 • PAM will work with you on an implementation plan • Funding and co-branding opportunities will be available based on plan

39. Thank you! Your contacts: margot.weigl@hp.com, phone: +49 172 655 38 52 Richard.walker2@hp.com, phone: +44 7824 597218