CHANGING THE RULES OF NETWORKING. Mike Banic, Vice President, Global Marketing, HP Networking January 13th, 2011

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1 CHANGING THE RULES OF NETWORKING Mike Banic, Vice President, Global Marketing, HP Networking January 13th, 2011

2 FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the financial results of HP may 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 but not limited to any projections of revenue, margins, expenses, earnings, earnings per share, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, including execution of cost reduction programs and restructuring plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP s businesses; the development and transition of new products and services and the enhancement of existing products and services) to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP s intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 and HP s other filings with the Securities and Exchange Commission. HP assumes no obligation and does not intend to update these forward-looking statements. 2

3 NETWORKING AT AN INFLECTION POINT Current network status quo leaves networking too complex, rigid, costly, and unable to accommodate business change 3

4 A LARGE AND GROWING OPPORTUNITY HP Networking Market Opportunity ($B) $30 $24B $29B $1 $4 CAGR Security 8% $20 $1 $3 $2 $3 Routing 10% Mobility 13% Switching 5% $10 $18 $20 $ Source: HP Internal Analysis

5 ESTABLISHED LEADERSHIP AT THE EDGE DATA CENTER Virtual Connect CORE EDGE SMB Wireless Campus SECURITY Edge Firewall Threat Management MANAGEMENT Network Node Manager Operations Center SERVICES Operations Automation & Orchestration 5

6 EXPANDED LEADERSHIP TO THE CORE DATA CENTER Virtual Connect Edge End of Row Data Center Core CORE Core Routing Aggregation Campus Core Enterprise Core EDGE SMB Wireless Campus Edge Routing Enterprise SECURITY Edge Firewall Threat Management Data Center Intrusion Prevention MANAGEMENT Network Node Manager Operations Center SERVICES Operations Automation & Orchestration Intelligent Management Center 6

7 ACCELERATED CONVERGED INFRASTRUCTURE STRATEGY The Data Center of the Future will be built on a Converged Infrastructure Storage Servers Converged Infrastructure Power & Cooling 7 Networking Management Software

8 HP NETWORKING END-TO-END PORTFOLIO Data Center Campus Branch Security Mobility Unified Comms Horizontal Solutions 8

9 CHANGING THE RULES OF NETWORKING SIMPLIFIED ARCHITECTURE Two-tier architecture Unified wired / wireless SECURE Day Zero protection Deployed in hours, not days AGILE SERVICE DELIVERY Virtualized Fabric Application ready LOWER TCO Up to 66% lower TCO 1 SERVICES AND EDUCATION Complete network lifecycle services 9 Note: 1 IDC, White Paper, ROI of a Complete networking portfolio: Delivering value from Network Edge to the Core (sponsored by HP), September 2010

10 SIMPLIFIED ARCHITECTURE Three-tier architecture & server-to-server traffic Three-tier Legacy Network N Unnecessary layers add hops and latency W 75% or more of traffic Slows performance of Federated Apps & VM mobility E S 10 Up to 50% of ports interconnect switches; not servers or storage

11 SIMPLIFIED ARCHITECTURE Two-tier architectures improve performance Simplified Two-tier Network A-Series Core Switches with IRF N Removed a Layer saving CAPEX IRF A-Series ToR Switches with IRF, HP Virtual Connect IRF W Virtual Connect 75% or more of traffic Virtualizing the access layer enables a single hop between servers E S Rack Servers 11 Blade Servers Virtualizing the access layer reduces latency, raises performance and reliability

12 SECURE Virtualization breaks traditional security Securing Single Workload Server Securing Virtualized Servers Web? App Web App DB Hypervisor Server 12

13 SECURE One security model for the physical AND virtual data center N-Platform IPS Top of Rack Switch Physical R&D Servers Distributed vswitch Physical Finance Servers vcontroller R&D Zone OS OS App OS App OS App App vcontroller DMZ Zone OS OS App OS App OS App App vcontroller Finance Zone OS OS App OS App OS App App Virtualized Servers Cluster Security Virtualization Framework 13

14 AGILE SERVICE DELIVERY Simplicity and flexibility through interoperability ProCurve ONE 3Com ON HP Networking Partners Additional specializations cover Compute, Storage, Management and Security HP AllianceONE TippingPoint Alliances Committed to open solutions Standards and expertise ensure coexistence and easy migration Deep interoperability expertise Knowledge bases and service personnel for heterogeneity Partner solutions certified Integrated partner applications tested and certified with HP Networking 14

15 LOWER TCO HP Networking lowers TCO by 66% $800 $600 $400 $200 $0 Annual networking costs per user 1-66% Without HPN With HPN Downtime Power & Space Infrastructure IT Staff Save capital through better network utilization Fully active links help avoid the cost of overprovisioning Save money with lower total support costs Industry leading warranties and support options help reduce the lifetime cost of a customer s network Save energy with higher density per watt HP products deliver higher density with less power, and up to half the energy consumption as compared to the nearest competitor 15 Source: IDC, White Paper, ROI of a Complete networking portfolio: Delivering value from Network Edge to the Core (sponsored by HP), September Based on respondents to IDC study. Specific results will vary, depending on network size, applications supported, network topology, mixed of wired/wireless infrastructure, etc.

16 EDUCATION HPN Certifications Master Accredited Sys Engr. (MASE) CCIE: Routing & Switching Network Infrastructure [2011] (10d+2e) Wireless Networks [2011] (10d+2e) CCIE: Wireless Network Security [In Development] CCIE: Security Unified Communications [In Development] CCIE: Voice Accredited System Engineer (ASE) CCNP: Routing & Switching Network Infrastructure [2011] (18d+2e) Wireless Networks [2011] (17d+2e) CCNP: Wireless Network Security [2011] (16d+2e) CCSP: Security IP Telephony [2011] (5d+1e) CCVP: Voice Associate Accredited Sys Engr. (AASE) CCNA: Any Track Network Infrastructure [2011] (7d+1e) CCNA: Design Network Security [2011] (4d+2e) IP Telephony [2010] (5d+1e) 16

17 SERVICES HP Network Support Services portfolio Proactive Only Support Options Full Mission Critical Support (Proactive and Reactive Support) HPN Products Support Portfolio Proactive Select Enhanced Networking menu Critical Service Mission Critical Partnership Support Product Warranty Reactive or Break/Fix Level Support HPN Products Support Portfolio Hardware Only Software Only Support Plus & Support Plus24 (HW & SW) Proactive 24 Service Transactional Deployment Factory Express Per Event Services - HPN product portfolio Install Install and Start Up WLAN Assessment Project Management Education 17

18 HP NETWORKING INDUSTRY RECOGNITION Enterprise LAN Intrusion Prevention Systems Source: Gartner, 2010 The Magic Quadrant for Enterprise LAN (Global) was authored by Mark Fabbi and Tim Zimmerman June 10, The Magic Quadrant for Network Intrusion Prevention Systems was authored by Greg Young and John Pescatore Dec 6, 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. The Magic Quadrant is copyrighted 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 18

19 WINNING CUSTOMERS 19

20 Q&A

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