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UNLEASH THE POTENTIAL. Thomas Goepel Senior Strategist HP Enterprise Servers, Storage and Networking. © 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. . Converged Infrastructure.
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UNLEASH THE POTENTIAL Thomas Goepel Senior Strategist HP Enterprise Servers, Storage and Networking © 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice.
Converged Infrastructure Helping our customers unleash their untapped potential © 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice.
IT sprawl has business at the breaking point • Business innovation throttled to 30% • Time to revenue • Cost of lost time, effort, opportunity • Unpredictable business cycles • 70% captive in operations and maintenance • Rigid & aging infrastructure • Application & information complexity • Inflexible business processes 92% 84% 8out of10 Agree innovation is critical to success in the new economy Believe business cycles will continue to be unpredictable in coming few years Business & technology approach needs to be more flexible to meet changing customer needs Sources: HP sponsored study: Coleman Parks Research LTD. October 2009
Storage Tomorrow’s business will be built on a converged infrastructure Unleash the potential • Any application, anywhere • Flex resources on demand • Unlock productivity • Predictable continuity of service • Faster time to business value Servers Building on what you have today Power & cooling Network Virtualized • Resilient • Orchestrated • Optimized • Modular Management software
The Converged Infrastructure architecture Infrastructure operating environment Enables shared-service management Flex fabric Wire-once, dynamic assembly, always predictable Adaptive resource pools Virtualized compute, memory, storage & network Data center smart grid Intelligent energy management across systems and facilities
Select Evaluate Review Meetings Approvals Order Delivery Test Unpack Meetings Approvals Coordinate Move Move again Testing Problems today with managing infrastructure Manual provisioning and highly customized process for every system • $8 in administrator costs for every $1 spent on systems • Common tasks require multiple steps and people • 7 days: Promote application to production • 15 days: New web server • 1 month: Remove outdated software • Human error a leading cause of downtime
HP Infrastructure Operating Environment A CIO blueprint to enableshared service management Select Portal Template Resources Initiate Provision A few automated steps, in less time Instantly respond to business demands Monthsto Min Accelerate service delivery • Deliver new services in minutes vs months • Optimize infrastructure confidently • Protect continuity and quality of services Most efficient use of IT resources & staff time
Problems today with data centernetworking Multiple hardwired and hierarchical networks • Multiple teams and people required to change connections • 3 days to turn off a network port • 6 weeks to connect VM to infrastructure • Hierarchical networks cannot scale without degrading performance
Delivering the converged infrastructure today 42% 54% 75% 94% 50% VIRTUAL CONNECT TRADITIONAL Servers ProCurve and Virtual Connect Servers PROCURVE + VIRTUAL CONNECT Servers Virtual Connect Virtual Connect Switch ProCurve LAN LAN Switch Switch LAN LAN Network cable costs NICs & switches Network edge costs Annual networking infrastructure cost reduction Power/space cost reduction Source: HP and IDC research
HP FlexFabric A CIO blueprint to deliver networking as a service Utilize scalable standards-based modules Virtualize and orchestrate the fabric Converge compute, storage and networking Wire-once, converge networks and adapt connections on demand • Dynamically scale capacity • Orchestrate connections in response to demand • Consolidate network equipment • Deliver predictable performance
Problems today with IT resources Trapped capacityin highly customized stacks for each application • For every $1 spent on systems • 50c on power and cooling • $2 on support infrastructure • $6 for availability • Capacity chronically underused • Servers: 20% utilization • Storage: 25% utilization • Network: 50% utilization
Delivering the converged infrastructure today HP BladeSystem Matrix Instantly adjust to dynamic business demands Deliver apps in minutes vs weeks Transform the economics of your data center 100% increase in productivity Integrated by design Works with existing environment
HP Virtual Resource Pools A CIO blueprint to enable the end-to-end virtualization of all resources Scale up, down, & out resources on-demand Modular, open design to integrate & scale Self-optimized and intelligent Any application. Any resource. Anytime. • Increases total resource utilization • NonStop resiliency and flexibility • Increases automation and productivity • Protect investments and easily grow Increased utilization of compute, storage and network capacity 2x ½ Reduced amount of support IT and energy use
Problems today with data center energy You can’t manage, what you can’t measure • #1 issue: Data center power and cooling (1) • 96% of IT will change their data centers to deal with the power and cooling issue (1) • Data center capacity is limiting IT growth • Energy cost is the fastest growing part of operational expenses • Government and corporate policies require visibility to CO2 emissions Datacenter Energy Consumption (2) Facilities54% IT46% (1) IDC Datacenter Green IT Trends, January 2009 (2): Average Power Allocation for Benchmarked Data Centers (LBNL 2007a)
Delivering the converged infrastructure today Thermal Logic technologies Embedded ‘sea of sensors’ Accurate power and cooling measurement of systems & facilities Intelligent, energy-awarecontrol Triple the capacity of your data center Facility-level visualization and control 30% increase in cooling capacity
HP Data Center Smart Grid A CIO blueprint to manage & automate data center energy management Balance workloads in the data center Automate energy management Accurately map facilities and IT Reduce costs and increase capacity by integrating IT and facility energy 30% Reduced facility power and cooling costs • Increase data center capacity & lifespan • Reduce costs required to power and cool IT • Improves reliability by optimizing IT efficiency • Provide insight and control over energy 2x Data center capacity
Accelerate your business with HP Converged Infrastructure Drive IT Innovation Drive Business Results Faster time to business value Weeksto min $ Improved productivity 2x Utilization infrastructure capacity Improve service-levels Reclaimed facility energy capacity Support business transformation 3x Make 70/30 about innovation again
Roadmaps © 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice.
ProLiant RoadmapEnterprise DL Products DL785 Intel 8P DL585 DL580 19 HP Confidential – NDA only
ProLiant RoadmapDL 300 series DL370/ ML370 DL380 DL385 DL360 DL320 EOL HP Confidential – NDA only
HP converged infrastructure For all workloads, desktop to NonStop c-Class: Converged infrastructure from small sites to large data centers VDI: Virtual desktops under $1,000 per seat Integrity NonStop: Continuous availability for mission-critical 24/7 operations BladeSystem Matrix: Converged platform enabling shared services ExDS 9100: Extreme scale data storage for managing digital content growth ©2009 HP Confidential
HP BladeSystem futures VDI 1.0 Business Ready Data Center Matrix 2.0 Unified storage 1H10 2H10 Next-generation HP Integrity FlexFabric G7 ProLiant ©2009 HP Confidential
HP ProLiant 8s x86 Server RoadmapPerformance tuned for large virtualized and database environments Today mid CY10 CY11 AMD OPTERON: Istanbul Intel XEON: Nehalem-EX Intel XEON: Westmere-EX HP ProLiant DL785 G6 7U, 8 socket Up to 48 cores • Efficiently utilize compute resources • Accelerate implementation • Faster business results with HP HP ProLiant DL980 G7 with PREMA 8U, 8 socket Up to 64 cores PREMA ... Performance enhanced architecture for the largest and most critical x86 Virtualized and Database Environments HP CONFIDENTIAL / CUSTOMER NDA REQUIRED / DO NOT DISTRIBUTE
Introducing HP Next Generation Integrity Servers Today 2010 Future MONTVALE TUKWILA POULSON, KITTSON Integrity Superdome 2 Integrity blades:BL860c i2, BL870c i2, BL890c i2 HP-UX 11i v3 and Multi-OS flexibility Integrity rackmount server:rx2800 i2
Two Architectures Co-exist HP Confidential
Blade Storage Portfolio External FC/iSCSI Expansion External SAS Solutionsfor BladeSystem Internal shared storage iSCSI SAN Consolidation and Performance AiO SB600c • FC/iSCSI SANs • MSA, EVA, XP • LeftHand SAN • All-in-One • ProLiant Storage Servers • Disk/Tape/D2D DAS Storageand TapeBlades • External shared SAS storage support with MSA2000sa • External zoned direct attach expands local drives for blade servers with MDS6000 • 3 Gb/s SAS • Internal shared storage support leveraging SB40c and flexible virtual SAN appliance from LeftHand Networks • iSCSI NAS shared • storage • Up to 6 hosts • < 1.1 TB • 1 Gb/s iSCSI • Simple DAS & data • protection • 1 to 1 DAS • 876 MB Capacity and scalability HP Confidential – NDA Required
Next Generation XP HP StorageWorks Array Roadmap • P2000 G3 MSA • 8Gb FC Controller • 6G SAS HDDs • P2000 G3 MSA • 6Gb SAS Controller • 10Gb iSCSI Ethernet Controller P2000 MSA Family • Snap Replication • Combo iSCSI/FC • 512 Snaps • HDD Spin-down • Native SMI-S • P2000 G3 MSA Features • Thin Provisioning • Automated Tiered Storage • SSD Support • 1024 Snaps MSA Arrays & JBODsEntry Storage Arrays and external expansion • VMware Integration • VStorage API • Site Recovery Mgr • 6Gb SAS JBODs • SAS 2.0 • Dual Domain • HP ProLiant & Integrity Servers, MSA Arrays • External SAS Switch • 6Gb VMware Vcenter Plug-ins for MSA and EVA • P6300 EVA, P6500 EVA • SAS back end • 8 Gb/s FC front end • SFF and LFF disk drives • Integrated iSCSI • Command View 9.2 • Local & remote replication • Thin Provisioning • Online LUN migration P6000 EVA Family • P6000 EVA Futures • New controller architecture based on industry standards • High performance • FC, 10Gb iSCSI front end • Bigger cache • More capacity with up to 480 LFF/1000SFF drives • Quality of Service • 128 snapshots Midrange to Enterprise-modular: Powerfully simple 450/600GB 10K SFF HDD • EVA SRM 4.0 Adapter for Vmware - P6300EVA/P6500 EVA 2TB SAS LFF HDD • EVA 44/64/8400 • Command View 9.2 • Thin Provisioning • Online LUN migration • Command View 10.0 • SVSP integration XP Family Enterprise-frame: Exceptional availability, scalability, and throughput • XP Cluster Extension • Windows Server 2008 R2 • Live Migration support • XP Cluster Extension • VMware Windows Server 2008 Guest OS • VMware Linux Guest OS • Support for native clustering software on RedHat & SuSE Linux • Quality of Service (QoS) • IOs prioritized by HPUX Application • Expanded Industry-leading 3 site DR • All three data centers are connected by Continuous Access Journal enabling greater distance between the three sites • Thin Provisioning Enhancement • Option to prevent over provisioning of thin provisioned volumes (as of Oct 09) Today CY1H 2010 CY2H 2010 Please note : CY1H 2010 = Jan’10- Jun’10 CY2H 2010 = Jul’10 – Dec’10
HP LeftHand P4000 Roadmap • SAN/iQ 8.5 • Network RAID 5/6 1.0 • Snapshot Mgmt Integration • SAN/iQ 8.x Service Pack • SAN/iQ 9.0 • Network RAID 5/6 2.0 • Internationalization • Alerts & Events • Global Monitoring • VMware vStorage API • HP Phone Home • Update/ Upgrade Mgmt • MPIO 2.0 (DSM / Native) • App Integration for Windows 1.1 • All SAN/iQ Features • VSS Requestor UI • File System (NTFS) • SQL Server • Exchange Server • Scheduling • Hyper-V Support HP LeftHandP4000 SAN/iQSoftware App Integration for Windows 2.0 • P4000 G2 Series • Latest Proliant Technology • LFF 15K SAS (450GB) • LFF 7.2K MDL SAS (1TB) • 10 GbE Dual Port SFP+ • IDP • USD Common Storage Platform HP LeftHand P4000 Platforms • SAN/iQ on Blades • Native SAN/iQ Port • Flex-10 Support (as of 1 Oct 09) Today CY1H 2010 CY2H 2010 Please note : CY1H 2010 = Jan’10- Jun’10 CY2H 2010 = Jul’10 – Dec’10 28
Delivering cost, time, change and energy improvements to the server edge 2010 2008 2007 2006 Virtual Connect Flex Fabric Virtual Connect Flex-10 Virtual Connect HP BladeSystemc-Class • Eliminate all server cables • Save power • Centralize management • Save space • Reduce cost • Simplify connection management • Save time • Change ready • Consolidate physical connections • Optimize bandwidth • Save power • Reduce cost • Converge LAN & SAN connections • Save power • Reduce cost ©2009 HP Confidential
SMB Virtual Connect Edge Firewall Wireless Campus HP Networking today • ProCurve portfolio today – leadership in Edge DataCenter Core Edge Security Management Network Node Manager Ops. Automation & Orchestration Operations Center
HP + 3Com – Leadership from Edge to Data Center Core Virtual Connect SMB Edge Firewall Wireless Campus DC Core Edge Routing Data Center End of Row Threat Management Intrusion Prevention Enterprise Core Aggregation Campus Core Core Routing Edge Enterprise DataCenter Core Edge Security Management Network Node Manager Ops. Automation & Orchestration Operations Center Integrated Management Center Carrier Future Partnership with
Additional Information and Where to Find It 3Com plans to file with the Securities and Exchange Commission and furnish to its stockholders a proxy statement in connection with the proposed merger. The proxy statement will contain important information about the proposed merger and related matters. Investors and stockholders are urged to read the proxy statement carefully when it becomes available. Investors and stockholders will be able to obtain free copies of the proxy statement and other documents filed with the SEC by 3Com through the web site maintained by the SEC at www.sec.gov, and from 3Com by contacting Investor Relations by mail at 3Com Corporation 350 Campus Drive, Marlborough, MA 01752-3064 Attention: Investor Relations, by telephone at 508-323-1198, or by going to 3Com’s Investor Information page on its corporate web site at www.3com.com (click on “Investor Information”, then on “SEC Filings”). Participants in the Solicitation 3Com and HP and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from 3Com stockholders in connection with the acquisition. Information about HP’s directors and executive officers is set forth in HP’s proxy statement on Schedule 14A filed with the SEC on January 20, 2009 and HP’s Annual Report on Form 10-K filed on December 18, 2008. Information about 3Com’s directors and executive officers is set forth in 3Com’s proxy statement on Schedule 14A filed with the SEC on August 7, 2009 and 3Com’s Annual Report on Form 10-K filed on July 27, 2009. Additional information regarding the interests of participants in the solicitation of proxies in connection with the merger will be included in the proxy statement that 3Com intends to file with the SEC. Forward-looking statements This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions, including those conditions related to regulatory approvals; any statements of the plans, strategies and objectives of management for future operations, including the execution of integration plans; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; that the transaction may not be timely completed, if at all; that, prior to the completion of the transaction, the target company’s business may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies; and other risks that are described in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Annual Report on Form 10-K for its fiscal year ended October 31, 2008 and Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2009. HP assumes no obligation and does not intend to update these forward-looking statements. Compliance notice David Donatelli will start managing HP's storage business on January 2, 2010. As a result, the information he is presenting today focuses only on HP's server and networking business. Important Information
Transformational Deal in Enterprise Networking Combination Would Create an End-to-End Enterprise Networking Leader • Best-in-class products based on open industry standards and innovative technology • Broadens HP Networking capabilities adding core switching, routing, and security • R&D design center with ~2,400 highly skilled engineers in China to fuel continued innovation and compelling TCO advantages • Enhances the capabilities and global reach of the largest technology company in the world • Enables HP to deliver a full spectrum of products from edge of the network to the heart of the data center Executive Summary • Would create a new global networking leader in a $40B market • Would make HP the #2 enterprise networking vendor worldwide • Would make HP a networking leader in one of the world’s fastest-growing IT markets, China • Combines HP strengths in the LAN edge with 3Com strengths in core switching • Combined HP and 3Com solutions would further accelerate HP Converged Infrastructure for next generation data centers
Build upon industry standards and HP’s extensive market reach Fastest growing Networking vendor since 2005 (Dell’Oro Group data) Price performance leadership Ecosystem support through ProCurve ONE alliance HP Networking Market HP and 3Com –Unmatched Momentum in Networking HP Networking Outpacing the Market Globally base 2005 = 100% Source Dell’Oro Group date 2005-2008 3Com Quickly Established Leadership in China • 21st century global operating model (design and R&D centralized in China) • Industry leading solutions (switching, routing, security) with differentiated high-end core switching • Proven enterprise deployments • Over 300 of the top 500 enterprises in China • Approximately 50% of revenue in China in FY09 3Com China Revenue ($M) 32% Market Share(1) $ ‘04-’09: 66% CAGR 1. Source IDC, 1h ’09 Enterprise switching market share in China
3Com: Technology Innovation and Leadership • New product family introduced May, 2009 • World’s most scalable and highest performing data center switch • Leverages a common operating system and open architecture • Unified management • Double the performance • 2x the density of competitive switches • Uses 1/3less energy • Lower total cost of ownership Data Center Core Switch S12500E
3Com Brings Strength in High-End Data Center Switching 3Com’s Product Leadership Validated by Industry Experts… “3Com has a product line, when you look at these announcements, that is as broad and robust as anyone out there, including Cisco. I think [Intelligent Management Center] is a unique differentiator. Network management hasn't been the core priority of most network equipment vendors. Even Cisco, with Cisco Works – the development of it tends to be pretty fragmented.” Zeus Kerravala,Yankee Group in TechTarget May 12, 2009 “3Com hopes to win enterprise networking customers with global H3C push” “3Com has a completely rejuvenated product offering from workgroup switching and WLAN through to high-capacity core switches.” Gartner Inc., April 30, 2009 “Magic Quadrant for Enterprise LAN (Global)” “The introduction of H3C products will add a very interesting dimension to the market...3Com now has a range of marquee clients won against top-notch vendors.” Chris Bernard, IDC, May 25, 2009 “3Com Moves Back Into Enterprise Business: Watch This Space” … and Adopted by Leading Global Enterprises • Over 300 of the Top 500 Enterprises in China • The 4th and 5th largest banks in the world • ~70% of the government networks in China • The world’s 8th busiest airport
HP IT & Enterprise Services Extensively Tested 3Com Products “We are confident that we can run our entire global business of 300,000-plus employees, including our next generation data centers, entirely on the new HP networking solutions. Based on our experience and extensive testing of 3Com’s products, we are planning to undertake a global rollout within HP as soon as possible after the completion of the acquisition.” Randy Mott – HP EVP and Chief Information Officer
Industry reaction H-P will now combine its own ProCurve networking products with 3Com's offerings, significantly boosting its reach in corporate data centers. With many firms rethinking their IT strategies as the economy emerges from the recession, HP is clearly laying the foundations for the future.Specifically, the deal expands the tech bellwether's Ethernet switch and routing products, as well as its presence in China. And HP took a big step tonight in fighting back, announcing a nearly $3 billion play for 3Com, in HP's fourth largest acquisition ever. The $7.90 a share is a nice, 40 percent premium to 3Com's trading price yesterday. It positions HP as a key, end-to-end supplier for datacenter customers, and is a huge step forward in staunching the increasing threat from Cisco. Together, they are clearly number two in the market,” said Steve Schuchart, an analyst with Current Analysis. “We’re seeing a fairly large consolidation in the market. ”This puts HP in a much better position against Cisco,” Schuchart said. “Overall, this is going to be a big opportunity.”
Conclusion • Transforms enterprise networking • Provides comprehensive solution in networking from the edge to the heart of the data center • Couples 3Com’s Next Generation enterprise products with HP’s global distribution and services • Adds a leading network security portfolio • Accelerates HP’s Converged Infrastructure strategy • Offers customers a compelling value proposition • Network simplification • Unique and innovative edge to core network fabric • Best in class price-performance