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HP Unveils Adaptive Enterprise Strategy to Help Businesses Manage Change and Get More from Their IT Investments

Strategy Backed by New Software, Services, Solutions, Partners and Customer Support
SAN JOSE, CALIF., MAY 6, 2003

HP (NYSE:HPQ) today announced its Adaptive Enterprise strategy aimed at companies and chief information officers that demand more out of their IT environments and partners -- more accountability, more agility and a better return on information technology.

On the one-year anniversary of its merger with Compaq, the company unveiled new services, software, solutions and an enterprise reference architecture designed to help companies measure, architect and manage change by creating a tighter linkage between business and IT.

"We learned a lot about the role of IT as a business accelerator in the process of integrating two large companies," said Carly Fiorina, HP chairman and chief executive officer. "We know from our customers that every organization is managing change at some level. Therefore, it's fitting that we take our experience and combine it with HP services, solutions, technology and a roadmap to deliver it to our customers."

At today's launch event, Fiorina and HP's enterprise team – including Shane Robison, chief technology officer, Ann Livermore, executive vice president of HP Services, and Peter Blackmore, executive vice president of enterprise systems -- outlined the following:

  • Three new Adaptive Enterprise services, including the industry's first set of business agility metrics, and new methodologies for designing and deploying application and network architectures to support constantly changing business needs.
  • New and enhanced software that incorporates technology advances to virtualize server environments for automated real-time resource utilization based on business priorities and new self-healing solutions for HP OpenView that proactively resolve technical issues associated with enterprise management software (see separate release).
  • HP's Darwin Reference Architecture: a framework for creating a business process-focused IT infrastructure designed to dynamically and automatically adjust to changes in the business, based on a set of design principles, industry-standard technologies and proven methodologies from HP and industry partners (see separate release).
  • Ten Adaptive Enterprise solutions that address critical customer needs in areas ranging from IT consolidation to enterprise integration, including hardware, software, services and relevant partnerships.
  • Customer support for the Adaptive Enterprise strategy, including finalizing the contract for Procter & Gamble's $3 billion managed services agreement, the largest in HP Services' history. Additional wins include Alcatel; Sprint; and CGI Group Ltd. for Kinnect Inc., a Lloyd's of London-sponsored initiative (see separate releases).
  • HP Labs' unveiled its Utility Data Center (UDC) systems in Palo Alto, Calif., and Bristol, U.K. Linked with HP's grid technologies, these systems are managing HP's cutting-edge research and development work.
  • Upgraded HP ProLiant blade servers that out-perform IBM in several new benchmarks, and a multitude of new customers that are using HP blade servers to create a more adaptive infrastructure and drive down cost and complexity (see separate release).

New Adaptive Enterprise Services Target Customer Needs

HP's new Adaptive Enterprise services are designed to help CIOs measure, assess and maintain a dynamic link between business and IT. In addition to improving business agility, the new services are focused on bringing new discipline to managing, measuring and operating IT as efficiently as every other business function.

"Improving business agility is a strategic priority for CIOs," said Livermore. "Our customers want to drive competitive advantage with an IT environment that dynamically adapts and evolves with constantly changing business needs. The services we announced today provide our customers with an innovative, yet pragmatic approach to designing, implementing and operating business processes, applications and their supporting IT infrastructure."

Measure Agility Along Time, Range and Ease

HP's new Agility Assessment Service helps IT organizations measure and assess their specific IT agility needs. HP, in cooperation with INSEAD, has examined business process change across a diverse set of industries and has identified time, range and ease as the three most critical dimensions for assessing the impact of change on business processes and the supporting IT and application infrastructure.

"In today's market, agility is the competency that will enable companies to survive and thrive," said Dr. Jim Oliver, research manager for IT agility, INSEAD. "Speed or lower costs alone are no longer enough."

The service identifies specific impediments to agility and provides a framework for rapid decision-making regarding enterprise agility improvements and investments. The base line measures established by the assessment allow the organization to track improvements over time.

Make IT Simple, Standard, Modular and Integrated

HP's new Adaptive Application Architecture and Adaptive Network Architecture services help CIOs implement an IT foundation that enables the rapid deployment, management and evolution of application software and IT infrastructure technology. Both services employ the design principles of simplification, standardization, modularity and integration.

HP Adaptive Application Architecture services allow organizations to develop a 360-degree view of their application architecture and are intended to ensure that everything from data migration to supply chain aggregation can work together in a way that optimizes agility. The result is a reduction in the number of applications, standardized interfaces and integration processes, which leads to an environment where applications can be transformed into reusable components allowing dynamic interoperability between applications.

As the leading J2EE application infrastructure software provider, BEA Systems plays a pivotal role in the success of HP Adaptive Application Architecture service initiative by adapting Web services platforms to achieve the customer mandate for significant enhancements in enterprise performance.

"The combined strength of BEA's market position in business integration and HP's leadership in adaptive infrastructure provides our joint customers with a springboard from which they can build the Web services platforms to help enable the next generation of technology solutions in the market," said Alfred Chuang, chairman, chief executive officer and founder, BEA Systems.

Re-design the Network Into Business-oriented Domains

HP's new Adaptive Network Architecture services help CIOs virtualize and extend their corporate networks by redesigning the underlying network infrastructure into business-oriented, logical domains that are designed around information needs rather than physical characteristics. The result is a simple and sustainable network model that enables the adaptive enterprise.

Based on enterprise-wide intelligent networking solutions from industry leader Cisco Systems, the preferred networking vendor for Adaptive Network Architecture, the Adaptive Network Architecture offers a simple and sustainable network model that enables the adaptive enterprise. HP and Cisco are working together to ensure the Adaptive Network Architecture incorporates Cisco best practices in networking architecture and design.

"Intelligent and agile networks support our customers' business goals and their growth for the future. HP's Adaptive Network Architecture and Cisco's industry-leading intelligent network services together reduce risk, provide greater flexibility and simplify network management," said James Richardson, senior vice president, Cisco. "We're extremely pleased that HP has selected Cisco as the preferred networking vendor of choice throughout the Adaptive Network Architecture."

"Complex changes to network security policies can be made in far less time, large groups of users and devices can be added or deleted from a network in a matter of hours instead of weeks, and no new networking gear is needed," said David Passmore, research director, Burton Group. "HP has created a new solution for managing network security as a system, rather than configuring individual devices."

Ten Adaptive Enterprise Solutions Target Customer Needs

Supporting its Adaptive Enterprise strategy, HP has packaged 10 Adaptive Enterprise solutions that address critical customer needs and streamline the company's go-to-market activities. In each of the 10 areas, HP delivers differentiated solution sets including hardware, software, services and relevant partnerships.

Six of the solution sets will help customers simplify, deploy and manage the right infrastructure to enable business agility: enterprise integration; it consolidation; management; virtualization; business continuity; and security. The other four solution sets empower customers to better manage the sourcing, implementation and service lifecycle: on demand solutions; managed services; integrated support; and financing solutions. More detail on each solution set is available at http://www.hp.com/go/demandmore.

HP Labs Showcases UDC – Utility Computing Made Real … Today

HP also showcased its Utility Data Center installations at HP Labs in Palo Alto and Bristol, where it will be used as a showcase for enterprise customers looking for advanced data center automation and resource virtualization and utilization capabilities.

The HP UDC makes it possible to virtualize data center resources – servers, networking, storage and applications – and easily reallocate them to meet changing needs. The UDC is expected to enable HP Labs to increase its computing capacity fourfold, without taking on additional personnel or space costs. HP Labs is migrating to the new facility all of its day-to-day IT needs, such as e-mail, Web services and commonly shared applications.

"HP Labs installed UDC for many of the same reasons our customers choose this solution – the economic and productivity benefits – but also as a giant step toward realizing a genuine adaptive enterprise environment," said Nick van der Zweep, director of utility computing, HP Enterprise Systems Group. "HP is the only vendor with an actual utility computing solution on the market today, and by practicing what we preach we further demonstrate to customers the benefits of choosing HP."

A replay of today's Adaptive Enterprise launch and additional supporting documents are available at www.hp.com/go/newsroom. Additional detail on how to architect, manage and measure an adaptive enterprise is available at www.hp.com/go/demandmore.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.


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, and the benefits derived from, these products and services may not proceed as planned or materialize to the extent or in the timeframe anticipated; 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.