Press Release: June 16, 2003

HP Builds Out Roadmap for Adaptive Enterprise Management

Company Introduces More than 30 New and Enhanced HP OpenView Software Solutions
CHICAGO, JUNE 16, 2003

Building on its AdaptiveEnterprise strategy introduced last month, HP (NYSE:HPQ) today further definedthe evolutionary path for businesses demanding reduced informationtechnology (IT) complexity and increased agility through anintelligently managed infrastructure.

As the next step towardshelping enterprises measure IT accountability and optimize the useof IT resources -- and, as a result, gain competitive advantage --HP introduced more than 30 newand enhanced HP OpenViewproducts, solutions and services here during the annual HP Software Forum.

"HP is unsurpassed in our ability tomanage the kinds of rich, heterogeneous infrastructures that ourenterprise customers employ," said Nora Denzel, senior vicepresident, HP Software GlobalBusiness Unit. "Today, we tore away at the complexity that preventsCIOs from effectively managing this mission-critical weapon.

"The evolutionary pathwe've drawn, the host of new HP OpenView managementfunctionalities we've unveiled, the standards-based interfaceswe're driving - all wrapped up with the tight integration we havewith partners - help enterprises plan and transition to highlyadaptive and cost-effective management for their entireinfrastructure."

Implementing an adaptiveenterprise and optimizing return on IT can best be achieved with anintelligently managed infrastructure that is flexible enough toadapt to rapid changes in the marketplace. In the context of theDarwin Reference Architecture, the company's overall framework forenterprise agility, HP hascharted the three evolutionary phases of adaptive managementsoftware functionality:

  1. Business Stability: Operations-centric management is designedto reduce total cost of ownership by providing IT managers with themeans to stabilize and control infrastructure operations - acrossnetworks, servers, clients, output and storage devices, andapplications.
  2. Business Efficiency: Service-centric management, built on thisfoundation, improves business efficiency and effectiveness byintegrating and aligning the IT infrastructure with the services ITdelivers to the enterprise.
  3. Business Agility: Business-process management takes anenterprise to the ultimate state of management fitness by usingbusiness process awareness to ensure that the IT infrastructureautomatically applies the right resources to the right problem atthe right time.

Enterprise customers canmap to these phases and, based on their unique priorities,constraints and competitive strategies, make the progression from atraditional management system that monitors and alerts to a360-degree adaptive management approach that proactively assesses,advises and acts across all aspects of the enterprise IT stack.

Whether these customerschoose to manage their own environments or an outsourcing approach,HP can help them make theprogression to an intelligently managed adaptive enterprise. Inaddition to the strong partnerships the company has with leadingsystems integrators, HP'sConsulting and Integration and Managed Services organizations offercustomers a comprehensive set of services around HP's management softwareportfolio.

New HP OpenView Solutions Clear Path toAdaptive Management

HP introduced more than 30 new andenhanced HP OpenView softwaresolutions today in support of the three phases of adaptivemanagement. Highlights include:

Business Stability:Operation-centric Management

Providing customers with aone-stop shopping approach to gaining deep-level fault managementcapabilities, HP willincorporate network fault, performance and problem diagnosis,including deeper Layer 2 and 3 fault management, within a newbundled solution called HPOpenView Network Node Manager Advanced 7.0. This integrated packagefeatures updates to the intelligent diagnostics engine, which willfurther reduce the mean-time-to-repair by improving root-causeanalysis capabilities that work to resolve and identify possiblenetwork downtime problems before disastrous consequences occur.

Business Efficiency:Service-centric Management

To improve linkage betweenIT service delivery and business objectives, HP is introducing the HP OpenView Service Navigator ValuePack. This solution leverages an integrated common data repositorywith HP OpenView Service Deskto provide enterprises with a single cohesive means of sharingcritical information. This functionality enables proactivemanagement of existing IT resources so service levels can bemaintained and service-level agreement violations can beavoided.

Business Agility:Business-process Management

HP is introducing previews of newtechnology, HP OpenViewBusiness Impact Analysis, which enables companies to assess theimpact that infrastructure failures or performance degradationshave upon on their business. By correlating business flows withunderlying operations data, companies can quickly assess thefinancial costs and degree of customer disruptions. This ultimatelyensures that IT priorities are aligned real-time with businesspriorities.

"HP's open and extensible OpenViewplatform gives us the ability to manage the entire lifecycle of ourinfrastructure - regardless of vendor of origin," said JasonKennedy, system management analyst, Best Buy Canada Ltd./FutureShop. "HP helped us easilymigrate from a chaotic solution to an adaptive one, making theshift to a service-oriented monitoring and management paradigmstreamlined and seamless. By working with HP on our transformation, we becamemore focused on our business and the market at hand, providing ourcustomers with an elevated level of service."

"With today'sannouncements, HP isstrengthening its position in 'adaptive enterprise' by bringingtogether architecture and product with a vision sensitive to ITorganizational dynamics and business demands," said DennisDrogseth, vice president, Enterprise Management Associates. "HP's clear focus on open, modularand flexible management bodes well for IT organizations seeking atruly strategic business partner rather than 'all-or-nothing'mandates or sales efforts targeting a uni-brand 'bag of goods.'With these announcements, HPhas reinforced its commitment to on-demand computing as a fullymultibrand requirement touching all levels of theinfrastructure."

In a separate announcementtoday, HP introduced enhancedintegration capabilities, demonstrating the company's successfulwork with and through customers and partners to help end-usersachieve their goals for achieving an adaptive enterprise. Unlikeprescriptive vendors, HP'scollaborative approach extends the management options of theenterprise and reaffirms the position that the customer controlsits own infrastructure, and its own destiny. (See release titled"HP Collaborates withCustomers, Partners to Advance Management of the AdaptiveEnterprise.")

About HP

HP delivers vital technology forbusiness and life. The company's solutions span IT infrastructure,personal computing and access devices, global services and imagingand printing for consumers, enterprises and small and mediumbusiness. For the last four quarters, HP revenue totaled $70.4 billion.More information about HP isavailable at http://www.hp.com.


This news releasecontains forward-looking statements that involve risks,uncertainties and assumptions. All statements other than statementsof historical fact are statements that could be deemedforward-looking statements. Risks, uncertainties and assumptionsinclude the possibility that the market for the sale of certainproducts and services may not develop as expected; that developmentand performance of these products and services may not proceed asplanned; and other risks that are described from time to time inHP's Securities and ExchangeCommission reports, including but not limited to HP's quarterly report on Form 10-Qfor the quarter ended January 31, 2003, and subsequently filedreports. If any of these risks or uncertainties materializes or anyof these assumptions proves incorrect, HP's results could differ materiallyfrom HP's expectations inthese statements. HP assumesno obligation to update these forward-lookingstatements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.