Press Release:
Topics:

Johnson Controls Streamlines IT Costs Through HP's Services Leadership

Five-year Agreement Supports 20,600 Users at More Than 250 Sites

Johnson Controls, Inc. (NYSE:JCI) has selected HP (NYSE: HPQ) to assume the management of its desktop and notebook computing environment in the United States and Canada. The five-year agreement stems from a Six Sigma quality initiative that explored several options for outsourcing the management of Johnson Controls' IT resources and services.

Under the agreement, HP will support Johnson Controls' client-computing environment in North America including updates to Johnson Controls' PC equipment at least every 36 months. This is expected to require HP to provide more than 34,000 desktop and notebook PCs over the life of the agreement -- and a full range of remote and on-site services for 20,600 users at more than 250 sites.

"For Johnson Controls, the agreement means cost savings as well as improved productivity, quality and service. We expect this change to enhance the support our employees need to achieve excellence in customer satisfaction," said Subhash (Sam) Valanju, vice president and chief information officer, Johnson Controls. "We made this selection based on proven expertise in both equipment and services and in the breadth of services capabilities, reputation and geographical coverage."

The new contract builds on a long-lasting relationship with Johnson Controls, where industry-standard ProLiant servers are the corporate standard for the Intel® server environment. Prior to this agreement, Compaq represented about 65 percent of the desktop and notebook computing environment at Johnson Controls.

"With this agreement, HP assumes much of the IT management burden from Johnson Controls, enabling them to spend less time working with their infrastructure and more time addressing core business operations," said Ann Livermore, executive vice president, HP Services. "When HP wraps together products and services into a total solution, we work as a true partner with the customer, becoming an integral part of the IT organization's value to the parent company."

The HP Program Management Office, located at Johnson Controls headquarters in Milwaukee, will now oversee all product and service delivery to support the agreement. HP will provide order procurement, fulfillment, image management and product staging for program and non-program assets. In addition, HP will manage all assets and provide centralized help desk support from its Customer Solution and Support Center in Colorado Springs, Colo., as well as oversee the on-site desk-side support at Johnson Controls campuses in Wisconsin and Michigan and dispatched support for remote locations.

"It's a tribute to HP that Johnson Controls -- recognized for being a well-managed company -- conducted a quantitative quality control analysis as part of its selection process," said Bill Weaver, vice president, HP U.S. Enterprise and Commercial Sales. "The analysis underscored how HP offers the right blend of flexibility and cost efficiency so essential in today's economy."

Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems and batteries. For nonresidential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls, founded in 1885, has headquarters in Milwaukee. Its sales for 2001 totaled $18.4 billion.

About HP

HP is a leading global provider of technology products, 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. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. Information about HP and its products can be found at http://www.hp.com.


Intel is a U.S. registered trademark of Intel Corp.


This document 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. Further, these forward-looking statements do not constitute new or amended overall financial guidance for HP, and any anticipated aggregate contract values referred to in this document do not independently provide a basis for determining the future timing of revenue.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues (including where the underlying contract has already been signed), or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, 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 performance of contracts by customers and partners; employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; 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 annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports.

HP assumes no obligation and does not intend 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.