WW SPO ITC via AE for the Channel Margin Pilot

1. WW SPO ITC via AE for the Channel Margin Pilot Steve Fink, HP IT Consolidation Program Mike Wardley, WW SPO

2. Agenda • Overview • Financial Measurement and Return • Objectives for the pilot • Time Lines • Customers and their Challenge • Solutions • Engagement and Execution Model • Reseller Profile and Skill Set • Competitive Landscape Draft for discussion only HP Confidential

3. Program Overview This is a 3 month pilot to build out and test a process to sell specific ITC solution bundles or “happy meals” to qualified customers who want to shift their IT spend from “maintenance to innovation”. The program will use 4 selected resellers and has a stated goal of improving margin via increase attach. The process uses almost all existing infrastructure components and is based on methodologies developed in Americas, EMEA and APJ around the use the AOG tool. The pilot will be deployed in NA first. The target customer will be selected from below the C&I 700 and qualified via a lead generation campaign based on data contained within the “hard hanks” database and a “needs assessment” using the AOG tool. HP will provide access to the AOG tool for qualified customers and a selected reseller will provide the customer engagement and deployment Leads, deals and sales will all be tracked using the existing NA Eclipse program Tool – OMNI. Draft for discussion only HP Confidential

4. Program Goals How do HP, it’s distributors and resellers make money – Drive high margin business to and through the channel • Goals of pilot program include: • Developing a mechanism to measure HP’s ability to improve solution margin through the channel • Incent channel to sell high margin HP products and services • Incent channel to attach complementary high margin HP products and services • Simplify solution selling motion for the channel • Simple, straight forward value propositions for rich solutions. (“here is a simple way to address your Oracle data base challenges”) • Measuring and rewarding channel success • Improve channel loyalty by proving HP can improve their margin and bring them customers Draft for discussion only HP Confidential

5. Financial Measurements and ROI As this is a pilot program, specific financial objectives and ROI are difficult to define. Most of the effort will be in developing the process and testing it for effective operation. # Customers engaged 200 per month 600 for the duration of the program # Leads for the program: 50 per month 150 for the duration of the program # Lead that end up in AOG 25 per month 75 for the duration of the program Assessment # AOG Assessments that end 20 per month 60 for the duration of the program up as proposals # Proposals customer buy 10 per month 30 for the duration of the program outright # Of addition proposals that 3 per month 9 for the duration of the program customer buy with addition Eclipse inducements Product Revenues (Normalized $) will be: Current Target Servers $50 $50 Storage $10 $20 Software $15 $30 Services/Support $15 $30 Misc $10 $20 Note: Server $ is the same in both cases, hence overall revenue and margin pool for the deals increase. Draft for discussion only HP Confidential

6. The program has 3 distinct phases with different objectives and deliverables at each phase. Within a phase there will be simultaneous execution. The current phase must be completed before moving to the next. Consider: Crawl May-July 2005: Obtain organizational alignment for the objectives, resources and execution model. Build out and review with constituency the process, portfolio and collateral. Tune the program model for optimum margin and execution. Walk Aug-October 2005: Launch limited pilot with selected partners in NA only. Assess progress of pilot Adjust solution portfolio and the engagement model. Tune the program model for optimum margin, execution Build out “ramp plan” and evaluate for wide scale deployment Run January 2006: Obtain organizational alignment for the “ramp out” Increase the portfolio by including addition solutions e.g. CCI and TPM Align with Overlord launch and extend the program to “ramp out” partners in “ramp out” countries. Time Lines - Program Schedule Draft for discussion only HP Confidential

7. Who is the Customer? • Aligned with existing Regional ITC channel programs • Customers that fall below C&I top 700 • Customers above SMB. • Customers that have consolidation needs that align with the current program solution offering. • Customer that have a need to reduce IT cost by increasing utilization and agility Draft for discussion only HP Confidential

8. New ITinitiatives New businessinitiatives Operations Managementtransformation Operations Infrastructuretransformation Infrastructure Infrastructure What is the Customer’s Challenge? Need to shifting IT investment from maintenance to innovation • Use IT Cons. savings to fund new initiatives • Optimize IT to lower costs, drive operational excellence HP Confidential

9. Strategic IT ConsolidationOptimizing IT to increase business value Dedicated silos Inefficient Tactical IT consolidationEconomical Strategic IT consolidationAdaptive Goals • Fast response • Ease of execution Scope • Individual project Attributes • Many diverse boxes and tools • Isolated, redundant, applications • Hard to manage, change • Over-provisioned, low utilization • Limited virtualization Goals • Short term ROI, lower TCO • Reduced risk Scope • Existing infrastructure • Limited application focus Attributes • Rationalized boxes and tools • Basic application rationalization(for example, messaging) • Common management, DR • Standardized • Partially virtualized But… • Prone to reconsolidation Goals • Business and IT agility • Transform IT to become an internal service provider Scope • Focused on innovation • Providing shared, common services to the enterprise Attributes • Sustaining IT platform • Standardized infrastructure, applications, business processes • Adaptive management • Fully virtualized HP Confidential

10. Solutions The pilot will market four IT Consolidation Solutions: Two for blades and two for integrity Adaptive Enterprise Domains: • Virtualization • IT Consolidation • Management • Business Continuity and Availability • Virtualization IT Consolidation Solutions Areas: • Application and Database Consolidation • Data Center Consolidation • IT Management Consolidation • IT Utility Consolidation • Mainframe Alternative • Servers and Storage Consolidation • Workplace Consolidation Draft for discussion only Pilot Solutions: • 1 - Being Determined • 2 - Being Determined • 3 - Being Determined • 4 - Being Determined Note: The candidate solutions are listed later in the deck HP Confidential

11. Solutions All solutions will have complete supporting collateral and defined “attach” elements included as part of the solution stack or “happy meal”. Typical Solution Collateral Set: • Reseller Training • Value Prop. for resellers and customer • Solution Brief / Brochure • Sizing Tool • Performance Bench Marks • Technical White Papers • Customer Success/Case Study • Seminar in a Box • Sample Bill of Materials Migration and Transition Services Deployment Services TS Support Offering SGBU Software Offering Supporting Collateral Set Draft for discussion only Solution Stack or “Happy Meal” 3rd Party Application Focus Server Platform: Integrity or Blades Pres-sales Support Migration and Transition Tools SWD Storage Offering HP Confidential

12. Solution Portfolio Summary Listed here are the target solutions. Two will be selected for Integrity and two for Blades: Draft for discussion only HP Confidential

13. Solution Portfolio Collateral Summary Listed here is the collateral for the targeted solutions. Draft for discussion only HP Confidential

14. Solution Attach Summary Listed here is the collateral for the targeted solutions. Draft for discussion only HP Confidential

15. Solution Components Template: The solution below is a basic template that will enable resellers to identify needs and customize for their specific customer scenario Draft for discussion only HP Confidential

16. Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Lead Generation and Reseller Engagement Omni Deal Tracking HP drives lead generation program via mailer or telemarketing Customer responses is profiled and evaluated for “target customers profile” and “deliverability” Qualified leads are allocated to appropriate reseller based on solution fit and geographic considerations Target Customer list will come from: Existing HP customer lists External customer list Resellers customer list Draft for discussion only Reseller Customer Allocated reseller engages customer HP Confidential

17. Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Customer Engagement Steps/Key Activities Deployment Proposal Presentation Sale Closing Opportunity Identification Current Environment Mapping Preliminary Design Proposal Development Detailed Solution Design Draft for discussion only Negotiation Request configurations and services quotes Present the Designed Solution + Services Gather current environment information Customer confirms interest in preliminary assessment Preliminary design process Translate functional requirements into design specification n days 1 to n days 1 to n days 1 to n days 1 to n days Consolidated Architecture Blueprint P R E L I M I N A R Y A S S E S S M E N T P R O C E S S Up to 50 servers inventory & performance data collection AOG Tool installation/setup + Customer questionnaire Review questionnaire and AOG Tool reports HP driven customer centric deal Closer Preliminary Design 3 to 4 days 1 to 2 days 3 to 4 weeks 1 week HP Confidential

18. Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Reseller / HP Engagement Steps/Key Activities Deployment Proposal Presentation Sale Closing Opportunity Identification Current Environment Mapping Preliminary Design Proposal Development Detailed Solution Design Draft for discussion only Negotiation Request configurations and services quotes Present the Designed Solution + Services Gather current environment information Customer confirms interest in preliminary assessment Preliminary design process Translate functional requirements into design specification n days Proposal Environment data Deploy AOG Consolidated Architecture Blueprint Engage Customer Reseller Reseller Environment data and basic proposal AOG database Proposal Deal Sweetener HP or Reseller Pre-sales service Update deal status Request AOG licenses and update deal status Omni Deal Tracking Update deal status Eclipse Funding HP Confidential

19. Reseller Profile and Skill Set Below is a discussion of the reseller profile and skill set that has been determined based on specific input from various constituents and the needs of the proposed ITC solutions. • Profile • The target Resellers will likely be enterprise partners and used to selling enterprise class solutions. • They will also likely be an “Authorized Business Solution Partner”. • Experience • Will have sold one or more of the AE solutions in it’s, pre-AE incarnation, specifically IT Consolidation. • Skills • The target reseller must be AE trained • The target reseller must be AOG trained • Solutions • Have alliance or relationship that they support one of the big ISVs (i.e., Oracle, Sap, etc.) • Have vertical industry knowledge/experience and/or Network skills • Products • Integrity • The reseller will be a “value partner” • Will be a HP-UX reseller • Blades • The reseller will be able to deploy blades solutions, including system insight manager, vmware and associated support care packs • Storage • Authorized to sell HP enterprise storage • Support • Software • Linux • Will be a linux elite partner????? • Have Linux Red Hat/SuSE certified SAs • Misc • Delivery Capability • Have some type of consulting practice, or relationship with an SI • Blades Draft for discussion only HP Confidential

20. Dell, EMC, Sun and IBM are all active in the ITC space. Particularly IBM. IBM sells their “On demand” vision of how IT should work and uses ITC projects as a way of achieving an “On Demand” infrastructure. Competitive Landscape Draft for discussion only HP Confidential