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HP and Opsware Inc. Join Forces to Deliver Enhanced Automation for HP's Utility Data Center

PALO ALTO AND SUNNYVALE, CALIF., JUNE 2, 2003

HP (NYSE:HPQ) and Opsware Inc. (NASDAQ: OPSW) today announced a strategic relationship that combines the HP Utility Data Center (UDC), the market-leading data center virtualization solution, with Opsware's industry-leading data center automation software. The combination provides enterprise customers with an enhanced utility computing solution that delivers virtualization of computing resources, application metering, and software automation.

In addition to distributing Opsware software with HP UDC, HP Services will be an "Opsware Authorized Partner," providing Opsware consulting and implementation services in conjunction with the HP UDC. UDC customers will have the option to purchase the combined solution from HP by the end of 2003.

"HP and Opsware are putting together critical pieces of the utility computing puzzle," said Vernon Turner, Group Vice President, IDC. "This relationship is a winning combination that creates a solution that can optimize every layer of the stack and further establishes HP and Opsware as leaders in this fast-growing market."

The HP Utility Data Center solution provides complete virtualization of computing resources - including networking, servers, storage, and operating system and application provisioning across multiple platforms (including Windows, Solaris, HP-UX and Linux) while the Opsware software automates key software and application operations such as fine-grain software provisioning, patching, and application deployment and rollback. The combined solution offers enterprise customers dramatic reductions in IT operating costs through improved labor and equipment utilization. With Opsware and the HP UDC, customers can reduce initial deployment times by 80 percent, and can see an incremental annual cost savings of nearly 90 percent.

"The benefits of HP's Utility Data Center solution are increased with Opsware's automation software," said Jim Hays, vice president, Infrastructure Solutions, HP Enterprise Systems Group. "HP's relationship with Opsware is another demonstration of HP's Adaptive Enterprise strategy in action - offering our enterprise customers industry-leading solutions to enhance agility and achieve a better return on IT investments."

HP Services Agreement

The agreement announced today also designates HP Services as an "Opsware Authorized Partner" for Opsware-related consulting and implementation services. HP's worldwide services organization - now the world's third largest provider of IT services - will offer enterprise customers a range of Opsware-related services including customer workshops, ROI analyses, installation and deployment services, integration with monitoring, ticketing and other workflow systems, and ongoing management and administration of the Opsware System in conjunction with an HP UDC installation.

"Our relationship with HP is key for meeting the growing demand for Opsware's data center automation solution," said Marc Andreessen, Chairman of Opsware Inc. "This agreement represents a significant expansion of our global presence, and delivers the product breadth, distribution and service scale required to meet the demand for data center automation and growing demand for utility computing. HP's experience with selling, designing and implementing industry-leading solutions such as the HP Utility Data Center, will be of tremendous benefit to customers purchasing Opsware."

HP UDC and Opsware Integration

The integration of Opsware and HP UDC will enable customers to realize an enhanced utility computing model, that further reduces costs and implementation times in existing or new data center environments. As customers use UDC to make real-time changes to their virtual environment, Opsware will be immediately aware of the changes and able to further automate software operations to make applications and services available on the fly. HP UDC and Opsware address all system platforms including HP-UX, Windows®, Linux and Solaris, and provide support for a range of software products including application servers, database servers, web servers, directory servers, content management systems and messaging and enterprise integration solutions.

About Opsware Inc.

Opsware Inc., formerly Loudcloud, is the leading provider of data center automation (DCA) software, offering a complete solution for enterprises, government agencies and service providers looking to reduce costs and increase IT efficiencies. The Opsware System automates the complete IT lifecycle including provisioning, deploying, changing, scaling, securing, recovering, consolidating, auditing and reallocating servers and business applications. The Opsware System uniquely combines process automation with built in operations knowledge on numerous technologies. Opsware was the foundation of Loudcloud's software-powered managed services business and has been proven to lower costs, accelerate change and increase service quality. For more information on Opsware Inc., please visit our Web site at www.opsware.com.

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.


Loudcloud and Opsware are service marks and trademarks of Opsware Inc.

Windows is a US registered trademark of Microsoft Corporation.


This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; 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.