HP Accelerates Market Share Gains in Networking Worldwide and in Every Region

PALO ALTO, Calif. - HP today announced it has achieved market share gains across all networking segments in every region of the world in the first calendar quarter of 2011.

According to a recently issued report by analyst firm Dell’Oro Group,(1) HP Networking continues to grow faster than the market while increasing its revenue market share at the expense of the competition.

Specifically, the report reveals that HP gained 2.5 percentage points worldwide for layer 2/layer 3 Ethernet switching revenue market share in the first quarter of 2011. Cisco’s share fell 5.8 points in the same period.

HP also gained 2.5 percentage points in router and 2.2 points in wireless local area network (WLAN) revenue market share over the same period,(1) while Cisco’s share declined by 3.1 points in router and 0.4 points in WLAN.

With HP, clients are transitioning to simpler, more flexible and open networks that drive new levels of agility into their enterprise environments. The result is market growth illustrating customer confidence in HP Networking is continuing to accelerate on a global basis.

To further spur HP’s growth in networking, the company has recently introduced the HP FlexNetwork architecture, the industry’s only unified architecture for the data center, campus and branch. A core component of the HP Converged Infrastructure, the HP FlexNetwork architecture unifies network silos by ensuring protocols are implemented consistently across all networked devices throughout an enterprise.

“Customers are telling us that there is a significant sense of urgency to eliminate their inflexible, complex and expensive networks,” said Mike Banic, vice president, Global Marketing, Networking, HP. “As our market share gains demonstrate, customers around the world are choosing HP to create networks that are more flexible and easier to manage – better preparing them to adapt to cloud and other dynamic computing models.”

Other HP highlights of the recent Dell’Oro Group report include:

* Solidified No. 1 position in the smart managed switch category with 34 percent market share and a 13 percentage point lead over the second-place vendor.(2)
* Strengthened No. 2 position in switching and router markets, both in revenue and unit share, with 12 percent revenue and 20.2 percent port share in switching, as well as 5.5 percent revenue and 10.3 percent unit share in routers.(1)
* Gained switching revenue share year over year in all regions: 1 percentage point gain in North America; 2 points in Europe, the Middle East and Africa; 6 points in Asia Pacific and Japan; and 4 points in Latin America.(1)
* Outpaced the market in switching revenue share growth in the Asia Pacific and Japan region during the period, growing from 14.6 percent to 20.1 percent, and in Latin America, which grew from 12.6 percent to 16.1 percent over the same period.(1)
* Outperformed the market in switching, routing and WLAN categories during the two years since the first quarter 2009.(1)

More information about HP Networking solutions is available at www.hp.com/networking.

HP Converged Infrastructure is key to an Instant-On Enterprise. In a world of continuous connectivity, the Instant-On Enterprise embeds technology in everything it does to serve customers, employees, partners and citizens with whatever they need, instantly.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

(1) “L2-3 Ethernet Vendor Table Q12011” and “Routers Enterprise Vendor Tables Q12011,” Dell’Oro Group, June 2011.

(2) “Ethernet Switch Quarterly Report for Q12011,” Dell’Oro Group, May 2011.

This news advisory 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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include 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 customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2011 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010. HP assumes no obligation and does not intend to update these forward-looking statements.