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HP ProLiant SmartBuy Program April 4th 2005

HP ProLiant SmartBuy Program April 4th 2005. HP ProLiant Servers Industry Standard Servers. Agenda. Benefits of ProLiant Smart Buy New Smart Buy servers (NEW!) Competitive comparison Smart Buy Q&A & Smart Buy terms and conditions (NEW!). Benefits of Smart Buy. Save up to $1,342.

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HP ProLiant SmartBuy Program April 4th 2005

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  1. HP ProLiant SmartBuy ProgramApril 4th 2005 HP ProLiant Servers Industry Standard Servers

  2. Agenda • Benefits of ProLiant Smart Buy • New Smart Buy servers (NEW!) • Competitive comparison • Smart Buy Q&A & Smart Buy terms and conditions (NEW!)

  3. Benefits of Smart Buy

  4. Save up to $1,342 Simple to sell - Instant savings! Priced for any budget $649-$5,699 Up-front discounting Richer Partner Benefits SPIFs Broader Availability on Servers Available Technology for any needs Leading Edge Tech Features Benefits of HP Smart Buys Why Smart Buys?

  5. ProLiant SmartBuy Benefits continued

  6. Program Benefits -Smart Buy vs. previous state

  7. New Smart Buy servers

  8. Which ProLiant’s are available as Smart Buys during this period? • ProLiant ML110 G2 & ML150 G2 • ProLiant ML330 & ML310 G2 • ProLiant ML350 G4 • ProLiant ML370 G4 Ideal as first server for a Small Business. Easy to set up and deploy For growing businesses running sophisticated Small Business Applications Small/Medium Business & Workgroup Server with essential availability features Suitable for any business requiring Industry leading performance, management & availability Note: ML110 G1 Discontinues April 2005. ML330 Discontinues July 31st 2005.

  9. ProLiant Smart Buys launching April 4th 2005 • ProLiant ML350 G4 • ProLiant ML370 G4 • ProLiant ML110 G1 • ProLiant ML330 G1 New Server Model Transitions to Transitions to • ProLiant ML110 G2 • ProLiant ML310 G2 • ProLiant ML150 G2 Disco Dates Extended

  10. Smart Buy Program – ML 110 G1 – ML110 G2 Transition Part # Description Description Part # 470062-573 ML110 C2.6 MHz 256 MB1X80 470063-217 S-BUY HP ML110G2 C2.8 1X80G Svr 470062-544 ML110 3.0GHz P4 512MB, 2x80GB 470063-207 S-BUY HP ML110G2 P3.0 NHP80 Svr 470062-545 ML110 3.0GHz P4, 1GB 1x72GB 470063-209 S-BUY HP ML110G2 P3.0 NHP72 Svr 470062-574 ML110 3.0GHz P4, 512MB, 1x36GB DAT40 No DAT Replacement SKU 470062-548 ML110 3.0GHz P4, 1GB, SCSI 1x72GB, SBS 470063-211 S-BUY HP ML110G2 P3.2 SBS Svr 470062-549 ML110 3.0GHz P4, 1GB, SCSI 1x72GB, Windows 470063-210 S-BUY HP ML110G2 P3.2 2003 Svr No SCSI RAID Replacement SKU ML110 3.0GHz P4, 1GB, SCSI 2x72GB, RAID 470062-546 Note: No SCSI RAID Model on ML110 G2. SATA RAID Model created instead 470063-208. More demand for SATA RAID in this space. Microsoft Windows Server 2003 is drop in the box & Microsoft SBS is Pre-Installed

  11. NEW Smart Buy Program – ML 110 G2 Complete SKU List SB Internet List Price ILP Part # Save Description % S-BUY HP ML110G2 C2.8 1X80G Svr 470063-217 $142 18% $791 $649 S-BUY HP ML110G2 C2.8 2x80G Svr 470063-206 $1199 $249 $1448 17% S-BUY HP ML110G2 P3.0 NHP80 Svr 470063-207 $228 $1299 15% $1527 S-BUY HP ML110G2 P3.0 HP Svr 470063-208 $267 $1499 15% $1766 S-BUY HP ML110G2 P3.0 NHP72 Svr $249 470063-209 $1649 $1898 13% $2299 470063-210 $259 $2558 10% S-BUY HP ML110G2 P3.2 2003 Svr $2249 S-BUY HP ML110G2 P3.2 SBS Svr 470063-211 $281 11% $2530 Detailed Spec. Information can be found on the Partner Portal.

  12. NEW Smart Buy Program – ML 150 G2 Server SB Internet List Price ILP Part # Save Description % S-BUY HP ML150T2 X3.0 80G Server 470063-106 $290 19% $1489 $1199 S-BUY HP ML150T2 X3.0 160G Server 470063-107 $1599 $324 $1923 17% S-BUY HP ML150T2 X3.2 HPSATA Server 470063-218 $443 $1969 18% $2412 S-BUY HP ML150T2 X3.0 NHP72G Server 470063-110 $340 $1849 18% $2189 470063-108 $2399 S-BUY HP ML150T2 X3.0 HP72G Server $2820 $421 15% 470063-111 $2139 S-BUY HP ML150T2 X3.2 SCSI Server $2649 $510 19% 470063-109 $2399 S-BUY HP ML150T2 X3.0 W2003 Server $2834 $435 15% 470063-112 $2549 S-BUY HP ML150T2 X3.0 72G SBS Server $2965 $416 14% Detailed Spec. Information can be found on the Partner Portal.

  13. Disco July 31st Smart Buy Program – ML 330 Servers SB Internet List Price ILP Part # Save Description % ML330 2.8GHz Xeon 512 MB1X80GB 470062-576 $1159 12% $1311 $152 ML330 2.8GHz Xeon 1GB, 2x80GB 470062-550 $1599 $224 $1823 12% ML330 2.8GHz Xeon, 512MB 2x72GB 470062-551 $410 $1699 19% $2109 ML330 3.0GHz Xeon, 512MB, 1x72GB DAT40 470062-575 $242 $2369 9% $2611 ML330 3.0GHz Xeon, 1GB, 2x72GB, SA641 $364 470062-552 $2799 $3163 12% $2999 470062-553 $3480 $481 14% ML330 2.8GHz Xeon,1GB, 1x72GB, SBS, DAT 40 $3459 ML330 2.8GHz Xeon, 1GB, 1x72GB, Windows, DAT 40 470062-554 $417 11% $3876

  14. Smart Buy Program – ML 330 G1 – ML310 G2 Transition Part # Description Description Part # 470062-576 ML330 2.8GHz Xeon 512 MB1X80GB 470063-178 S-BUY HP ML310T2 C2.8 NHP Server 470062-550 ML330 2.8GHz Xeon 1GB, 2x80GB 470063-179 S-BUY HP ML310T2 X3.0 NHP Svr 470062-551 ML330 2.8GHz Xeon, 512MB 2x72GB 470063-187 S-BUY HP ML310T2 P3.2 72NHP Svr No DAT Replacement SKU 470062-575 ML330 3.0GHz Xeon, 512MB, 1x72GB DAT40 470062-552 ML330 3.0GHz Xeon, 1GB, 2x72GB, SA641 470063-189 S-BUY HP ML310T2 P3.2 SCSI Svr 470062-553 ML330 2.8GHz Xeon,1GB, 1x72GB, SBS, DAT 40 470063-191 S-BUY HP ML310T2 3.2 SBS Svr 470062-554 ML330 2.8GHz Xeon, 1GB, 1x72GB, Windows, DAT 40 470063-190 S-BUY HP ML310T2 P3.2 W2003 Svr Note: OS Models no longer bundled with DAT Drives Microsoft Windows Server 2003 is drop in the box Microsoft Small Business Server 2003 is Pre-Installed

  15. NEW Smart Buy Program – ML 310 G2 Complete SKU List SB Internet List Price ILP Part # Save Description % S-BUY HP ML310T2 C2.8 NHP Server 470063-178 $849 $181 18% $1030 S-BUY HP ML310T2 P3.0 NHP Svr US 470063-179 $1369 $515 $1884 27% S-BUY HP ML310T2 P3.2 72NHP Svr US 470063-187 $433 $1729 20% $2162 S-BUY HP ML310T2 P3.2 SCSI Svr US 470063-189 $647 $1699 28% $2346 S-BUY HP ML310T2 P3.2 W2003 Svr US $658 470063-190 $2729 $3387 19% $2299 470063-191 $363 $2662 14% S-BUY HP ML310T2 P3.2 SBS Svr US Detailed Spec. Information can be found on the Partner Portal.

  16. Smart Buy Program – ML350 & ML370 SKU LifeCycle Extended SB Internet List Price ILP Part # Save Description % S-BUY HP ML350T4 X3.2-1M 1G 378710-001 $2399 $223 8% $2622 S-BUY HP ML350T4 X3.2-1M 2G 2X36 SA641 378711-001 $3999 $494 $4493 11% S-BUY HP ML350T4 X3.2-1M SBS-03 SERVER 379301-001 $548 $4999 10% $5547 S-BUY HP ML350T X3.2-1M W2003 SERVER 379302-001 $544 $5399 9% $5943 S-BUY HP ML370T4 X3.2-1M 2G 2X36 SA641 $1093 378712-001 $4499 $5592 20% $4759 378713-001 $1163 $5922 20% S-BUY HP ML370R4 X3.2-1M 2G 2X36 SA641 $5699 S-BUY HP ML370T4 3.2-1M 2G W2003 SERVER 378304-001 $1342 19% $7041 Detailed Spec. Information can be found on the Partner Portal.

  17. Competitive comparisonsWhat is a ProLiant and how does Smart Buy fit in the competitive equation?

  18. The next big thing – What is a ProLiant? Price + Reliability + Security + Simplicity and manageability + Adaptability + Innovation + Connection

  19. HP Strategy High tech, low cost, best customer experience Focused innovation that drives real value Affordable technology that offers the best return on investment Low cost High tech Customer Best customer experience A superior customer experience with HP and HP technology

  20. ProLiant Server Technology Leadership • Focus on customer needs • Increase Datacenter flexibility, responsiveness and visibility • Remove barriers to IT deployment, operations and management • Improve infrastructure leverage with convergence and simplification • Optimize return for scarce IT budget dollars • Driving useful innovation • Extend dense server expertise into blade server leadership • Balance overall system performance with local I/O & memory advances • Pioneer emerging fabric technologies • Improve architectural resilience • Innovative software options increase feature flexibility, lower entry costs

  21. ProLiant by the numbers • Over 8 Million sold • 1 every 20 seconds produced • #1 market share • BestCustomer Satisfaction • The 750,000 Remote Lights Out boards in use today have saved IT organizations about 112 million miles of travel – enough to travel around the earth 5,000 times • ProLiant BL20p: best SAP SD Standard ApplicationBenchmark and best SPECweb99_SSL

  22. HP ProLiant – the volume leader x86 Worldwide Server Units White Box12% IBM17% Others13% 9* 8 Dell25% HPQ33% 8 Months 9 Months 7 6 12 Months 5 Source: IDC Quarterly Server Tracker 4Q03 11 Months 4 13 Months 3 22 Months 7 Years 2Million 1Million Cumulative ProLiant servers shipped *Projected 89 96 98 99 00 01 02 03 04 05 06

  23. HP #1 in x86 server market Worldwide server factory revenue market share: x86 server market 40% HPQ 30% DELL 20% IBM 10% WhiteBox Source: IDC Quarterly Server Tracker 4Q03 0% 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 • HP the undisputed IA-32 leader • Ahead of IBM on execution/vision • Ahead of Dell on vision Source: Gartner Research (September 2003)Entry Level Servers, Magic Quadrant, 2H03

  24. The future of the HP ProLiant advantage is addressing the infrastructure, not just the server Looking ahead with Innovations that . . . Address the complete infrastructure: Value across technology, people and processes,across the system, across the lifecycle Plan for the long-term; both known and unknown: Ensuring customers can continue to innovate and differentiate their business through IT Ensure consistency & integration: Integration across silos, interchangeable parts, single consoles, same tools, proven engineering, etc. . . While continuing to Execute on . . . • Broad but simple Choice • Xeon + Opteron • Smart Buy bundles • Everyday Value • Efficient management for lower cost of ownership • ProLiant 100 series • Trusted Experience • Delivering reliability customers expect • Ensuring investment protection

  25. Feature Comparison – 1/2P ML Servers Shared Features NIC: Single Gigabit ML150 G2 ML310 G2 ML110 G2 Processor 1P DP, 800 FSB, 1M L2 cache 2P Xeon 800 FSB 1P DP, 800 FSB, 1M L2 cache Memory PC2700 DDR 333 (4 sockets) PC3200 DDR Optional Interleaving PC3200 DDR Optional Interleaving Chipset Intel® E7221 Chipset Intel Lindenhurst Intel® E7221 Chipset 4 NHP SCSI, 4 NHP SATA or 4 HP SATA 4 NHP/ HP SCSI, 4 NHP SATA or 4 HP SATA\SAS 6 HDD Bays NHP/ HP SCSI and HP SATA and NHP IDE HDD 3 64b/66MHz PCI-X 1 32b/33MHz 5VPCI 1 PCI-Express 2 64b/100MHz PCI-X 1 32b/33MHz 5VPCI 1 PCI-Express 1 PCI-Express Min. 364b/66MHz PCI-X 1 32b/33MHz5VPCI I/O NHP Power NHP Power NHP Power Power Manageability Lights-Out 100 Remote Mgt Card Full ProLiant Management Suite Lights-Out 100 Remote Mgt Card 1-1-1 Warranty 1-1-1 Warranty 1-1-1 Warranty Warranty

  26. Feature Comparison – 2P ML Servers Best ML370 Better ML350 Good ML330 • Maximum Performance & Availability • Designed for environments that require maximum uptime • Fully redundant (3+3), hot plug fans • Hot plug, redundant power supply • Tool-less chassis • Online spare memory • Incorporates traditionally enterprise class features • iLO for remote management • 3 year warranty • Essential Availability • Designed for minimum downtime • Hot plug, redundant power supply • Extra fan (optional) • Hot plug SCSI drives (most models) • Price:performance leader • 3 year warranty • Lowest Price & Smallest Size • Designed for non-mission critical applications • Quiet during operation • Smallest footprint among 2P ProLiant ML servers • 1 year warranty Availability, Performance, Functionality & Price

  27. 2P ideal for: • File/print • Web servers • Small databases, workgroup applications and Mail & Messaging • 1P ideal for: • File & print/fax • Shared web access • Front-end utilities ProLiant Smart Buy 100 & 300 Series servers • ML370 • Leading 2P performance & reliability Save up to $1,342 with Smart BuyWindows Server 2003 Availability • ML350 • 2P performance with essential availability Save up to $548 with Smart BuyWindows SBS & Windows Server 2003 Availability • ML330 • Reliable 2P server for sophisticated small businesses and replicated sites Save up to $481 with Smart BuyWindows SBS & Windows Server 2003 Availability Save up to $658 with Smart BuyWindows SBS & Windows Server 2003 Availability • ML110* + ML150 +ML310 • Entry level small business server New * Formerly tx21xx series

  28. 1P & 2P IA-32 market segmentation $3000 • value conscious • med/large corporate workgroups • 500+ clients • remote locations • infrastructure, db & e-commerce • performance, expansion, manageability • availability & stability enterprise class 1/2P DL/ML300 seriesBL10e, BL20p $2000 price • value conscious • sophisticated small-business • 1-99 clients • value reliability, ease of use, headroom • dedicated IT resource (savvy) $1000 • cost-conscious • HPTC solutions • 16-128 nodes • performance, industry standards • Small business • 1-50 clients (usually <10 peer-to-peer) • file & print, web access (modem) Simple, affordable 1/2P ML/DL 100 series performance/features

  29. There is opportunity to gain share in the entry-level 1/2P IA-32 market • Unit volume CY 2002: 2.7million units** • Competitive Landscape:Intel & other white-box vendors, Dell PowerEdge, Local Heroes • Top technology requirements: • Best-in-class industry standard product tailored to specific usages • Designed based on the latest industry standard technology - on time • Supported by expertise and capabilities from a best-in-class brand • Provided at an affordable, aggressive price • IDC Projects growth rate of 40-60% 2003-2006 Enterprise-class 1/2P Simple, affordableentry-level 1/2P Rack 14%** Tower19%* Rack33%* Tower34%** There are multiple customer usage and workload requirements in the entry-level 1/2P segment - no single server can meet all customers’ needs *IDC estimates ** Internal estimates

  30. X86 Servers – 1way (Based on Units) Arrows represent change in market share vs CQ3 04, Graphs represent market share trend Market growth YoY - CQ4 04 over CQ4 03; QoQ – CQ4 04 over CQ3 04 Source: IDC WW Storage & Server Tracker 3Q04, based on unit shipment

  31. X86 Servers – 2way (Based on Units) Arrows represent change in market share vs CQ3 04, Graphs represent market share trend Market growth YoY - CQ4 04 over CQ4 03; QoQ – CQ4 04 over CQ3 04 Source: IDC WW Storage & Server Tracker 3Q04, based on unit shipment

  32. Smart Buy With Big Deal $791 $649 0% off List 18% off List & -6% < Dell Why Smart Buys are so effective – ML110 G2Example as of April, 2005 $791 $693* ProLiant ML110G2 Server Intel® Celeron™ Processor 2.8GHz/533MHz 256MB PC3200 DDR SDRAM DIMM 80-GB SATA 1 year parts, labor, onsite support Dell PowerEdge 420SC Intel® Celeron™ Processor 2.53GHz/533MHz (+$125 adjustment) 256MB PC3200 DDR SDRAM DIMM 80-GB SATA 3 year parts, onsite labor (-$149 adjustment) *$693 equalized price; Dell standard ILP $717

  33. Microsoft Small Business Server Attach Opportunity – Customers have to get it somewhere, why not from HP? • Value Proposition • Simple, inexpensive way to purchase, install, and support a customer’s server and server operating system together • Integrated and optimized on the industry’s most reliable and trusted industry standard server platform • Price competitiveness against DELL • End user demand generation Approx Revenue $420 (M) CY05 Unit Sales Approx Revenue $70 (M) * Estimated Dell Microsoft attached unit sales

  34. Smart Buy Q&A & Smart Buy terms and conditions

  35. Smart Buy Q&A • What is the HP Smart Buy Program? • Designed and developed for HP channel partners, the Smart Buy program helps you grow your business by reaching new customers while increasing your margins. Smart Buy offers off-the shelf HP Business Solutions at competitive prices, with amazing savings, excellent availability, and superior HP quality. • What are the benefits of the Smart Buy program? • Increased profitability. Smart Buy products incorporate variable partner discounts into the partner buy price. Estimated channel margins vary from 6% to 12% for ProLiant Servers – the richer the configuration, the better the margin on the sale • Reseller SPIF. Several of the Smart Buy products also give you the advantage of a reseller SPIF via Partner One, as high as $40 per unit • Competitive Prices. With special pricing, Smart Buy products offer aggressive savings over comparable, regularly priced configurations. • Availability. Smart Buy products are stocked by our distribution partners, so your customers won’t have to wait. • No mail-in rebates or back-end claims. HP Smart Buy products are already aggressively priced and so are not eligible for Big Deal Pricing, Public Sector rebates or any other back-end programs.

  36. Smart Buy Q&A cont. What additions are being made to the ProLiant Smart Buy Program? We have launched with the existing ML110, ML330, ML350 & ML370 and the ML110G2, ML150G2, and ML310G2 Smart Buy Servers as of April 4th, 2005. Who are the target customers for Smart Buys? HP Smart Buys fit the needs of any business environment. Customers are those who are interested in a low-cost-of-ownership, easy manageability, reliability and expandability. Customers will benefit from the compelling prices, increased productivity and ability to get the job done. Who can take advantage of Smart Buy? All Partners can take advantage of the Smart Buy Program

  37. Smart Buy Q&A cont. • What are the Terms & Conditions associated with Smart Buy SKUs? • Server Smart Buys, as promotional skus, carry different terms and conditions which include: • No additional HP promotional dollars apply - i.e. Big Deal, PS rebates. • Big Deal Customers wishing to purchase Server Smart Buys may do so at list price. Note, Smart Buys WILL NOT be added to Big Deal Letters. • For returns, follow normal process. DOA normal process. (NEW!!!) • Price Protection follows normal process. • Server Smart Buy Lifecycles and prices are subject to change. • No lifecycle extensions whatsoever will be granted for individual accounts

  38. Understand it– Common customer questions You read business technology articles and you talk with savvy IT professionals. The message from both is that key business systems are built on servers, but what exactly does that mean? "Server" is a broad term that may quickly bring a host of questions such as: • How is a server different from a desktop system and can you use a high-end desktop in place of a server? • Servers are specifically designed to store, manage, send, and process data across a network. A server is much more than a supercharged desktop system, and can't be replaced by one. Desktop systems are optimized to run user-friendly operating systems, desktop applications, and facilitate other "desktop" tasks. Even if a desktop sports the same processor speed, memory, and hard disk space as a server, they aren't the same because the technologies behind them are engineered for different usage. • How do you know when you need a server? • Servers are designed to bring horsepower where system demands are highest, reduce data bottlenecks, and allow information to flow quickly and freely. Server technology makes them more reliable than desktop systems. • Will you have to replace it in six months? • Server hardware is more powerful than desktop systems, which means they can process data faster and more efficiently. This increase in capability includes a server's processor(s), disk subsystem(s), network interface(s), and more. Servers can easily be extended to support data backup and enhanced security. A server is designed to scale as your needs scale • And of course, how much will it all cost? • HP Smart Buy servers start at just $649

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