Enterprise Group. Dave Donatelli. Executive Vice President and General Manager Enterprise Group
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1 Enterprise Group Dave Donatelli Executive Vice President and General Manager Enterprise Group
2 Enterprise Group framework Who we are At the forefront of the major infrastructure trends leveraging our leadership position in the data center Targeting large growth markets with HP IP that drive higher than current margins What we face Streamline multiple product portfolios Unix business decline ISS revenue growth Channel engagement Sales force productivity Macroeconomic environment What to expect Continued revenue and share growth in key categories Networking 3PAR and StoreOnce Cloud Increased X86 server revenue growth Increased channel revenue 2
3 We see three big infrastructure trends Converged Infrastructure Cloud Software defined data center Security Management Services Servers Storage Network Facilities 3
4 The power of convergence Storage Servers Power and cooling Network Management software 4
5 And everyone else followed 346 videos >6M mentions >48K followers Blog ~1.4M blog posts 5
6 Converged Infrastructure innovation Key innovations Servers Storage Networking HP Software CloudSystem Data protection Common platform from IaaS to SaaS StoreOnce / Autonomy integration HP StoreVirtual (VSA) Collaborative cache Virtual Connect Flat SAN BladeSystem 3PAR / ProLiant Simplifying interconnects ProLiant, Storage, Integrity, Non-Stop 6
7 Transforming the infrastructure industry HP Servers Launching new server categories HP Storage New vision for the storage industry HP Networking Simplifying the network HP Technology Services Revolutionizing support service From servers, storage, networking and services all the way to the cloud 7
8 HP Servers 8
9 Server industry technology evolution Mainframe Unix Rack and tower x86 Blades Density optimized ARM and Atom (cloud / hyperscale) Market revenue growth ( CAGR%) 1 : -4% -2% 1% 7% 12% New category 9 1. HP Internal analysis 3%
10 x86 server market leadership through innovation Strong track record of innovation x86 revenue market share 1 Virtual Connect Sea-of-Sensors C-Class blades Insight Management Smart Update Intelligent Infrastructure Insight Online EcoPOD #1 #1 #1 Server vendor in shipments for 10+ consecutive years 60% 50% 40% 30% 20% 10% x86 server vendor in revenue and units for 16+ consecutive years x86 blade vendor in revenue and units for approximately six years Blades x86 (blade, rack and tower) 1. IDC 2Q12 WW quarterly server tracker x86 blade, tower and rack optimized form factors (factory revenue) 10
11 HP ProLiant Generation 8 servers Redefining data center expectations and economics Faster Proactive Simple Servers that basically take care of themselves Over 150 customer inspired design innovations Leader in performance 1 #1 #1 # HP Performance Brief, Sept. 2012, HP ProLiant DL380p Gen8, with SAP Sybase Adaptive Server Enterprise, Red Hat Enterprise Linux, renders compelling performance story; HP Performance Brief, June 2012, HP achieves #1 position for 2-processor virtualization performance; HP Performance Brief, June 2012, HP takes another performance first with the ProLiant DL385p Gen8 on the VMmark benchmark
12 At the forefront of HyperScale computing Density optimized x86 servers revenue market share 1 New innovation for ARM and Atom (HyperScale) 25% HP Project Moonshot 20% First major vendor to announce ARM and Atom server program 15% +8pts From tens of servers per rack sharing nothing to thousands per rack sharing everything 10% 5% By 2015, ARM and Atom servers expected to be 15% of the global server market ARM Cortex Intel Atom 0% CY2009 1H % Less energy 94% Less space 63% Less cost 97% Less complexity 1. IDC 2Q12 WW quarterly server tracker x86 Density Optimized form factor (factory revenue) Note: Projected performance improvements, HP internal analysis with publicly available information 12
13 Integrated cloud support for Converged Infrastructure Anytime access from any device of IT operations and support information Insight Online 24x7 automated event monitoring Easy all-in-one access, secure, personalized Automated service and support experience 13
14 HP Storage 14
15 HP Storage is winning in key segments HP Storage overall: Designed for the next era of IT Converged Storage portfolio, all HP owned IP, up 39% FY12 YTD External disk revenue up 2% FY12 YTD Achieved #2 in external storage revenue in EMEA 1 HP Storage revenue mix (FY12 YTD) Infrastructure HP 3PAR Storage: HP s largest storage platform 80%+ Y/Y growth YTD; combined 3PAR + EVA revenue up 14% FY12 YTD 3PAR gained 2.6 percentage points in market share in the high-end space since Q new 3PAR storage customers in the past year Tape and media External disk HP StoreOnce Backup: The fastest disk backup in the industry Record setting backup and restore performance vs. legacy market share leaders pts of share gain Y/Y in purpose-built backup appliance market CYQ IDC Worldwide Quarterly Disk Storage Systems Tracker 2Q12 2. Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 2Q12 Update Gartner August 31, IDC Worldwide Quarterly Purpose Built Backup Appliance Tracker, Sept (Open Systems) 4. HP internal analysis market CAGR 4 External disk +6% Tape and media -9% Infrastructure +6%
16 HP s Converged Storage strategy Transforming the enterprise storage industry with two next generation architectures Simple Efficient Agile Common technology from midrange to high-end so you can do far more with much less HP 3PAR ONE Modern storage architecture HP StoreOnce ONE Data protection architecture 16
17 Why customers love 3PAR Reduce capacity requirements by 50% Guaranteed! Spend 90% less time managing storage 2x VM density per server Guaranteed! 17
18 HP StoreOnce World s fastest deduplication solution Single architecture, Client-Side and In-Line data deduplication Deduplicate once and never rehydrate Manage centrally with automatic back-up restart Scale-out performance and capacity Developed by HP Labs 100TB/hr Back-up speed: B6200 with StoreOnce Catalyst 40TB/hr Back-up speed: B6200 Native performance 40TB/hr Restore speed: B6200 Native performance B
19 HP s modern architecture advantage 5x 3x EMC DD990 with Boost Introduced on May 21, 2012 vs. StoreOnce B6200 with Catalyst Yes 31 TB/hr. 7.5 TB/hr. Introduced on June 4, 2012 No Autonomic Restart High availability 100TB/HR Back-up speed Symantec or Data Protector 40TB/HR Restore speed Native VTL w/o offload any back-up application 19
20 HP Networking 20
21 HP Networking gaining momentum HP Networking switching: Network simplification #2 market share WW 1 in revenue at 11.5% and ports at 18.2% #1 market share in China at over 30% revenue share 2015 $32B addressable market 2 Enterprise WLAN HP Networking wireless: Wired/wireless integration Double digit Y/Y revenue growth FY12 YTD #3 market share WW 1 in revenue at 6.4% and units at 11.9% Enterprise routing Enterprise switching HP Networking routing: End-to-end WAN services #2 market share WW 1 in revenue; grew market share 3% over the last 3 years Multiple services in a single device, including voice and security 1,000+ New HP Networking customers in the past 18 months market CAGR 2 Switching +4% Routing +4% Wireless LAN +14% 1. Dell Oro CQ2 data 2. HP internal analysis 21
22 HP Networking Leadership from edge to the data center core FlexFabric Routing Core Aggregation Edge/Server Access Security FlexCampus Routing Core Aggregation Edge Wireless Security FlexBranch Routing Switching Wireless Security FlexManagement Intelligent Management Center Operations Center Operations Automation and Orchestration Network Node Manager 22
23 Solving the limitations of legacy networks by focusing on simplicity Application indifferent Rigid, physical networks Manual management Today s network limitations Focus less on managing infrastructure and more on connecting users to applications HP s vision for software defined networks 23
24 HP definition of software defined networks Ability to apply business logic to network behavior in a dynamic fashion 3 Deliver open APIs to automate orchestration of applications 2 Separate control and data plane 1 Open standard-based access to infrastructure 24
25 SDN architecture Introducing Virtual Application Networks SDN solution Delivering end-to-end Software Defined Network New innovations Application layer Virtual Cloud Networks, Sentinel Security & Open APIs Control layer Virtual Application Networks SDN Controller Infrastructure layer OpenFlow enabled on 25 switches 15M ports worldwide 25
26 Introducing Virtual Application Networks SDN Controller Industry s first open, complete hardware and software SDN solution Software or appliance OpenFlow switch programmability Supports HP SDN applications Open APIs enable third-party applications Extensible, scalable, resilient architecture 26
27 HP s complete single-touch SDN solution Application layer Virtual Cloud Network Sentinel Security Third-party applications enabled by open APIs Legacy Overlay HP Load Balancing Campus and branch SDN applications Controller Data Center SDN applications Separate control and data plane Infrastructure layer Open programmable access to infrastructure Single pane-of-glass and config automation Hardware performance 27
28 HP: A Leader in Gartner Magic Quadrants Magic Quadrant for Blade Servers Magic Quadrant for Midrange and High-End Modular Disk Arrays Magic Quadrant for Enterprise LAN (Global) Source: Gartner (March 2012) Source: Gartner (November 2011) Source: Gartner (August 2011) This Magic Quadrant graphic was published by Gartner Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from HP. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 28
29 HP CloudSystem 29
30 HP Converged Cloud architecture Built on market-leading HP intellectual property and OpenStack technology Traditional Private Cloud Managed Cloud Public Cloud HP Portal Experience HP Converged Information HP Converged Management & Security HP Converged Infrastructure 30
31 Innovation for the cloud Most complete, open, integrated system Over 150 cloud maps HP CloudSystem Single services view across hybrid cloud Multi-hypervisor, multi-os, heterogeneous infrastructure Intelligent automation and orchestration Rapid application and infrastructure deployment CLOUD MAPS SERVICE CATALOG ORCHESTRATION PROVISIONING & MONITORING CONVERGED INFRASTRUCTURE 100% Y/Y growth in Q312 HP Enterprise Servers, Storage and Networking HP Software 31
32 Innovation for the cloud Most complete, open, integrated system HP CloudSystem Single services view across hybrid cloud Multi-hypervisor, multi-os, heterogeneous infrastructure Intelligent automation and orchestration Rapid application and infrastructure deployment 100% Y/Y growth in Q312 CLOUD MAPS SERVICE CATALOG ORCHESTRATION PROVISIONING & MONITORING CONVERGED INFRASTRUCTURE HP CloudSystem Over 775 customers HP Enterprise Servers, Storage and Networking HP Software 32
33 Security Management Services Servers Storage Network Facilities HP Software Defined Data Center 33
34 HP Software Defined Data Center Already driving toward the future Software Defined Servers Software Defined Storage Software Defined Networking Project Moonshot HP StoreVirtual VSA HP SDN 34
35 What we will do to win. Make it matter. Focus Go to market Cost leverage Operational excellence Market leadership with Converged Infrastructure, Converged Cloud, Software Defined Data Center Portfolio simplification through common architecture and convergence Speed decisions by consolidating leadership across TS, ESSN Global Accounts New channel improvement programs launched globally New Enterprise Group supply chain cost savings program launched R&D leverage from a common architecture and shared building blocks Operational systems to drive productivity and efficiency (Salesforce.com) Continued quality process improvements (lower warranty costs / lower inventory) 35
36 HP Securities Analyst Meeting 2012
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