Press Release:

HP Launches Powerful, Standards-based Servers that Redefine Data Center Economics

Itanium "Ready for Prime Time" with New Processors, Servers and Workstations, Broad Application Portfolio and Solutions Network Across Operating Environments
PALO ALTO, CALIF., JUNE 30, 2003

HP (NYSE:HPQ) today introduced a powerful line of servers based on Intel® Corporation's new Itanium® 2 1.5-gigahertz processor that redefines data center economics by delivering up to $1 million in total three-year cost savings over IBM servers.(1) The new 64-bit HP Integrity servers, combined with the 32-bit ProLiant servers, form the strongest industry standard-based server lineup of any vendor in the market today.

The Integrity family ranges from one- and two-processor entry-level systems up to a 64-processor HP Integrity Superdome server and offers customers an unmatched cost-efficient, high-performance, multi-operating system infrastructure required for the demanding business challenges of managing an adaptive enterprise. HP's Itanium 2-based systems are backed by a broad network of more than 700 applications from major independent software vendors in both commercial and technical arenas.

Bolstering the company's portfolio of industry-standard servers, HP is upgrading select HP ProLiant servers with the latest Intel Xeon processor MP.

"Today is the day Itanium-based systems move mainstream," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "Customers no longer need to choose between high-performance computing and industry-standard economics. Combined, our new HP Integrity line, expanded HP ProLiant line, worldwide services and hundreds of software partners can deliver the economics, performance and ecosystem to revolutionize the data center. Itanium-based systems are definitely ready for prime time."

As the foundation for its standards-based server strategy, HP intends to maintain two long-term industry-standard architectures, IA-32 and IA-64/Itanium. HP is upgrading the HP ProLiant DL560, DL580, ML570, DL740 and DL760 servers and ProLiant BL40p blade server with the Intel Xeon processor MP at speeds up to 2.8 GHz with expected availability in mid-July running Windows® and Linux.

HP also made the following Itanium-2 processor related announcements today:

  • The company introduced the HP Workstation zx6000 enhanced with the new Intel Itanium 2 processor with 6 MB of level 3 cache. The HP Workstation zx6000 offers up to 50 percent increased application performance for scientific and technical applications based on the SPECfp and SPECint benchmark testing.(2) (See today's release titled "New Wave of HP Itanium 2-based Systems Delivers Breakthrough Performance for Technical Computing Users.")
  • New independent software vendors, including PeopleSoft and Siebel Systems, have joined the hundreds of companies already porting applications for HP's Integrity server line and Itanium-2 processor-based workstations. (See today's release titled "Industry Leaders Join HP to Deliver Extensive Portfolio of Solutions for New HP Integrity Server Line.")
  • New customers choosing HP Integrity systems and Itanium 2-based workstations for mission-critical applications (see below).
  • HP Services support programs that ensure optimal resource utilization, protect current IT investments and lower the total cost of ownership (see below).

HP Integrity Servers Deliver Breakthrough Performance, Choice

The Integrity server line offers new customers and HP's current ProLiant, HP 9000 PA-RISC based, AlphaServer and NonStop server customers unmatched performance and price performance, unprecedented choice and breakthrough flexibility.

The HP Integrity Superdome server is the world's fastest commercial processing machine with price/performance that is better than each of its high-end competitors(1) and comes in 16-, 32- and 64-processor configurations.

The four-processor HP Integrity rx5670 and two-processor HP Integrity rx2600 entry-level servers have been upgraded with the Intel Itanium 2 processor with 6 MB of level 3 cache and also demonstrate industry-leading performance.(2)HP also plans to introduce midrange Integrity systems with eight and 16 processors in the fall and an Itanium 2-based NonStop offering in 2004.

More information on HP Integrity server family world-leading performance is available at http://www.hp.com/go/hpintegritypresskit.

The Integrity servers run the industry's leading UNIX® operating system, HP-UX11i, as well as Windows Server 2003 Enterprise Edition and Datacenter Edition and Linux. The HP OpenVMS operating system is planned to be available with the full line of Integrity servers next year. Customers can buy HP Integrity servers with one operating system today and redeploy with a different operating system in the future, allowing them to better protect their IT investments.

"The combination of Microsoft technology and HP's Integrity server family continues to demonstrate that an integrated platform approach delivers breakthroughs in cost savings and operational efficiencies that meet the most demanding data center requirements," said Brian Valentine, senior vice president, Windows Division, Microsoft Corp. "Windows Server 2003 and SQL Server 2000 64-bit versions on Itanium 2-based solutions continue to deliver record breaking performance and scalability at incredibly low cost."

The Integrity Superdome server is the first server that can run UNIX, Windows and Linux simultaneously on a single system. This capability further enhances choice, flexibility and investment protection and is not found in competitive offerings. Customers can now consolidate resources from heterogeneous environments, increasing scalability, availability and performance with fewer resources, resulting in even better return on IT.

"New Intel Itanium 2 and Intel Xeon processors MP will advance HP's server product line to meet the diverse needs of the high-end enterprise," said Mike Fister, senior vice president, Intel Enterprise Platforms Group. "These platforms based on Intel architecture deliver tremendous performance and value for the most demanding enterprise applications such as enterprise resource planning, business intelligence and online transaction processing."

"People think that the move to Itanium is all about commodity components for scalable business servers and fast chips for high-performance computing. But its more than that," said Crawford Del Prete, senior vice president, IDC. "HP is leveraging Itanium technology so that it can focus on value around the processor to deliver new levels of functionality within the entire system."

Complementing the new HP Integrity servers is a broad portfolio of HP StorageWorks systems, including disk arrays, tape libraries and storage-area-network infrastructure solutions, which provide customers with single-vendor accountability for high availability, simplified management and improved return on IT.

In addition, HP Services provides a full set of lifecycle services to help companies quickly and confidently evolve to HP Integrity systems, including the option to quickly and cost-effectively scale their IT environments through HP's Instant Capacity on Demand offerings.

HP's Customer Evolution Program builds on HP Services' capabilities, adding financial incentives, tools, training and partners to offer HP's installed customers a smooth and cost-effective path to Itanium when they choose to take advantage of HP Integrity systems.

Extensive Application Portfolio Supports Mission-critical Needs

Strengthening the robust network behind Itanium, HP announced that more than 700 commercial and technical software applications and tools are available or now moving to the Integrity server line and HP Itanium 2-based workstations. The applications include software from BEA, Microsoft, Oracle, PeopleSoft, SAP, SAS and Siebel. HP expects more than 1,000 applications to be available for its Itanium-based systems by the end of the year.

"Customers are really looking for two things," said Chuck A. Rozwat, executive vice president, server technologies, Oracle. "They are looking for enterprise quality of service and want it at the lowest possible cost. Oracle technology and HP Integrity servers enable customers to meet those two challenges by providing customers with a scalable and flexible platform to run major operating systems without changing hardware."

Enthusiastic Customer Response

Customers around the globe are choosing to transition from current computing architectures to the high-performance, cost-efficient, multi-operating system infrastructure that HP provides.

"Our data warehouse and decision support system will ultimately be available to more than 5,000 financial advisors nationwide," said Tim Eitel, chief financial officer, Raymond James Financial. "The combination of the Integrity Superdome server running Microsoft SQL Server 2000 and Windows Server 2003 Datacenter Edition offers superior performance and unmatched scalability. Preliminary benchmark results show a five-fold performance increase over our previous systems and we are expecting those results to improve with further testing. At the same time, because we are dealing with technology based on industry standards, we can achieve exceptional performance while lowering our total cost of ownership."

"Airbus UK needed a partner that could enable backward and upward compatibility for our engineering simulations, so that our math libraries will be compatible and our numerical results consistent," said Nigel Barry, IT architect, Airbus UK. "HP has enabled us to meet this need through generations of hardware, most recently with Itanium 2-based systems running HP-UX 11i. Airbus UK is looking forward to the introduction of HP Integrity servers and clusters."

Pricing and Availability(3)

The HP Integrity Superdome servers are orderable now with estimated prices starting at U.S. $262,000.

The HP Integrity rx5670 and rx2600 entry-level servers are orderable now at U.S. list prices of U.S. $21,500 and $7,300, respectively.

The HP Workstation zx6000 is available with a list price of U.S. $4,896.

More information on HP Integrity server family is available at the online press kit at http://www.hp.com/go/hpintegritypresskit.

About HP

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


(1) Based on three-year price/performance for server hardware, storage hardware, operating system software, database software and 24 x 7 support as defined by the TPC. As of June 27, 2003, the following benchmarks were compared: HP Superdome client/server -- 707,102 tpmC at $8.44/tpmC and availability of Oct. 23, 2003; IBM eServer pSeries 690 Turbo 7040-681 -- 680,613 tpmC at $11.13/tpmC and availability of Nov. 8, 2003; NEC Express5800/1320Xc -- 514,034 tpmC at $11.50/tpmC and availability of Oct. 22, 2003; Fujitsu PrimePower 2000 -- 455,818 tpmC at $28.58/tpmC and availability of Feb. 28, 2002. Sun has no currently published high-end TPC-C benchmarks. The TPC is a non-profit corporation founded to define transaction processing and database benchmarks and to disseminate objective, verifiable TPC performance data to the industry. See www.tpc.org.

(2) Competitive benchmark results published on http://www.spec.org as of June 27, 2003.

(3) Actual prices may vary.

Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a U.S. registered trademark of Microsoft Corp. HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32- and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products. UNIX is a registered trademark of the Open Group. SPEC, SPECfp and SPECint are registered trademarks of the Standard Performance Evaluation Corporation. TPC is a registered trademark of the Transaction Processing Performance Council.


This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's quarterly report on Form 10-Q for the quarter ended January 31, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.

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.