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  1. Building anAdaptive Infrastructure Andrew Manners StorageWorks Division UK&I

  2. Key vendors by EMEA revenues Note: IBM rev excludes PWC consulting rev prior to acquisition Source: Company 10Qs, HP internal numbers

  3. EMC acquires more companies but wants more respectJune 20, 2006ZDNet writer Dan Farber’s blog During the dinner, Lewis ticked off the strengths of EMC's product portfolio… But, he expressed frustration that EMC doesn't get the respect he thinks it deserves…Like all companies, EMC wants Google-like multiples, or at least to have some of the love that is HP is getting lately. In the last year, HP's stock has appreciated about 30 percent, which has the effect of garnering more respect among competitors, customers and Wall Street. In the press Losing Patience With EMC By Stephen D. Simpson, CFAJuly 14, 2006 I know there's a positive spin to the quarter -- that the company wasn't able to fulfill all of the demand for high-end systems -- but I'm just not fully buying it. I think companies like Hewlett-Packard (NYSE: HPQ) are gaining on EMC and I'm skeptical about how it'll do against the IBMs (NYSE: IBM), Microsofts (Nasdaq: MSFT), and such on the software side. IDC Confirms HP’s Global Leadership in StoragePosted June 2, 2006The HP StorageWorks Enterprise Virtual Array (EVA) increased it’s external disk array revenue share for the fifth consecutive quarter, growing 46 percent year-over-year in the latest quarter. HP Taking the Gloves Off June, 2006 IDC Event Flash regarding the HP Americas StorageWorks Conference. We remain concerned that EMC is facing heightened competitive pressures in its systems business, primarily from HP (HPQ) and Hitachi….-J.P. Morgan, Bill Shope EMC Cuts Full-Year Sales Forecast; Revenue to Exceed $10.8 BlnBloomberg / July 14, 2006By Ron Day “HP is going through a resurgence of some magnitude in terms of their product competitiveness, and I'm sure EMC is feeling some of that,” said Matthew Kaufler, who helps manage $2.6 billion at Clover Capital in Rochester, New York. HP Internal use only

  4. The Adaptive Enterprise Business and IT synchronized to capitalize on change Business Information Technology Business benefits: simplicity, agility, value

  5. HP IT snapshot

  6. Financial Services Industry Manufacturing and Distribution Communications, Media and Entertainment Public Sector Business Services Management Information Adaptive Enterprise Solutions Applications Adaptive Infrastructure Infrastructure Adaptive Enterprise Business and IT synchronized to capitalize on change

  7. Cost of mgmt. & admin. 10% CAGR Operational spending growing at 3x other systems costs $200 New server spending (USM$) 3% CAGR $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 ’96 ’97 98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 Many Servers, Much Capacity, Low Utilization = $140B unutilized server assets WW Spending (US$B)

  8. IT budgets have little left for innovation Innovation and New Functions 10% Operations - Management and Maintenance Migration and Upgrades 65% 25% Only 10% or less of budget is left for innovation

  9. Current state Future state Low-costpooled ITassets High-cost IT islands Automated 24x7 lights-out computing Adaptive Infrastructure How we deliver Customer initiatives and HP offerings • Manage IT Infrastructure • Unify infrastructure mgt tools and processes • Secure IT infrastructure • Automate IT mgt processes • Align IT infrastructure with the business • Automate IT Service Delivery • Define and implement IT services – infrastructure, applications, information services • IT shared service utility • IT shared service transformation • Optimize IT Infrastructure • Standardize server and storage environment • Consolidate systems and data centers • Infrastructure continuity and availability IT Systems & Services Power & Cooling Virtualization Management Security Automation

  10. Current state Future state Low-costpooled ITassets High-cost IT islands Automated 24x7 lights-out computing Adaptive Infrastructure Journey Key enablers IT Systems & Services Security Automation Power & Cooling Management Virtualization • Leverage industry standard components • Create Scalable solutions based on standards • Deliver standardized IT services and solutions based on best practices • Drive solutions to address power-density requirements • Unified Infrastructure Management • Embed security at every level in the data chain • Drive and leverage industry secuiry standards and practices • Pooling and sharing of IT resources to optimize utilization • Deliver model-based automation to optimize operations • Automate to increase agility and simplicity

  11. Adaptive Infrastructure Key enablers Current state Future state Low-costpooled ITassets High-cost IT islands Automated 24x7 lights-out computing IT Systems & Services Security Automation Power & Cooling Management Virtualization • Systems: • Thermal Logic • Modular Cooling System • Power Management - BladeSystem • - ProLiant servers • - Integrity servers • Universal Rack infrastructure • Services: • Data Center Services • Thermal Assessment Services • Systems: • Virtual Connect • Integrity Virt. Machine • Virtual Machine Mgmt • Virtual Server Env’t • - Capacity Advisor • Serviceguard • NonStop Real Time Ent. • StorageWorks • - Ent. Virtual Array • - External storage XP • - Reference Info • Storage System • Utility Pricing • Services: • IT Shared Services • Virtualization services • Flexible Computing provisioning services • Systems: • HP BladeSystem • HP ProLiant servers • HP Integrity servers • - NonStop servers • HP StorageWorks • - Clustered Gateway • Services: • Agility Assessment • Factory Express • C & I services • Technology Services • Managed Services • Education & Training • Financing services • Software: • Systems Insight Manager • Insight Control • HP Essentials • - ProLiant • - Integrity • - Storage • HP OpenView • - System & NW Mgt • - Event & Perf Mgt • - App Mgt • - Cons Service Desk • - Asset Mgt • Services: • IT Service Mgmt • Infrastructure Mgmt • Data Center Mgmt • Systems: • Virus Throttling • Vulnerability & Patch Mgmt • HP-UX 11i security • - Secure partitions • - Intrusion Detection • ProCurve Identity Mgr • Software: • HP OpenView • - Identity mgmt • - Access control • - Federated access • - Audit • Services: • Security Gov & Mgmt • IT Security Assessment • Adaptive Net. Arch. • Security Ed & Training • Systems: • HP Essentials automation • Virtual Server Env’t automation • Software: • HP OpenView • - Configuration Mgmt • - Service Activator • Services: • Automation services • Instant Support Enterprise Edition • Integrated Support • Mission critical support

  12. Infrastructure SAN MANAGE Storage servers (NAS) & storage arrays Tape & disk-based data protection PROTECT Software OPTIMIZE HP StorageWorks product portfolio Embedded switches Multi-protocol services ISCSI/FCIP HP Switches and Directors Host Bus Adaptors MSA Family EVA Family XP Family ProLiant Storage Servers StorageWorks Clustered Gateway StorageWorks All-in-One MSA Family Services & Solutions Standalone drives & autoloaders EML E-Series ESL E-Series MSL series Virtual Library Systems Media ProLiant Data Protection Storage Server • Storage resource management • StorageWorks device management • Data protection & recovery • Replication • Data archive • Data migration

  13. Agility Information Mgmt • Turning data into information • Improving application performance • Addressing long-term retention and compliance requirements Efficiency Asset Management Stability Provide a stable, extensiblefoundation • Control of a complex environment • Improved asset utilization • Networked storage From Asset to Information ManagementIncreasing the business value of IT Business Value of IT Customer focus area