HP Opens its Data Centers to the Public via Utility Computing Services

PALO ALTO, Calif., Nov. 29, 2005, HP today unveiled utility computing services that enable multiple customers to access HP’s dedicated, publicly available computing resources at variable prices.

By using HP Flexible Computing Services, companies can quickly acquire additional IT resources as needed. The cost-per-unit pricing is ideal for customers with compute-intensive jobs that can outstrip the capacity found even in very well-equipped IT environments.

To help customers get started in utility computing in a low-risk, low-cost way, HP is offering an industry-first membership approach with its HP Flexible Computing Club. Members of the club receive special guidance and a “try-before-you-buy” experience to determine how utility computing can best fit their business needs.

HP jumpstarted the utility computing industry in November 1999 by introducing pay-per-use and instant capacity for enterprise customers. As part of HP Flexible Computing Services, the company is offering another industry first with a complete application utility for computer-aided engineering analysis.

The new services are designed for industries such as oil and gas, financial services and health sciences as well as independent software vendors that need to test software on large-scale infrastructures prior to release. They build, in part, on work that HP Labs performed with DreamWorks Animation last year in the production of the films Shrek 2 and Madagascar.

Schlumberger Information Solutions (SIS) is working with HP to help provide its customers the extra compute cycles and improved performance needed to run large numbers of reservoir simulations. HP Flexible Computing Services will help SIS deliver faster turnaround times to customers, allowing them to ultimately speed up the cycle from exploration to production. A recent success with a UK-based operator has demonstrated the power of flexible computing to run multiple concurrent simulation models for making important field development decisions in short timeframes.

HP Flexible Computing Services provide compute power based on a full range of technology platforms, from 32- and 64-bit systems, including Intel® Xeon™ and AMD Opteron™ processor-based HP ProLiant systems and Intel® Itanium® processor-based HP Integrity servers. They are offered with all major operating systems and select vertical industry applications. The HP Flexible Computing Services portfolio includes:

* HP Flexible Computing Club: HP is the first to offer enterprises a low-risk, low-cost way to determine whether utility computing is right for their business. This includes startup and consulting services and a 48-hour pilot project.


* Infrastructure Provisioning Service (IPS): A highly available IT infrastructure utility service with enhanced security delivered out of HP’s world-class data centers. HP owns the assets, including all hardware, and offers a choice of operating system environments. The customer provides and manages the application(s).


* Infrastructure Provisioning Service plus (IPS+): Includes IPS; HP also installs and manages workload and grid management software and/or compiler software for application developers. This software is provided by Platform Computing, DataSynapse, United Devices, Altair Engineering, PathScale and HP’s own software tools.


* Application Provisioning Service (APS): Includes IPS or IPS+; HP installs key vertical industry application software to a default configuration.


* Application Provisioning Service for Computer-Aided Engineering (CAE): An industry first, this complete application utility service includes many leading CAE applications for structural, crash and fluid analysis. Some of the leading ISV partners such as Abaqus, Fluent, LSTC and MSC.Software provide CAE software on the utility infrastructure with the goal of enabling customers to access and pay for the entire computing stack - the hardware, operating system and application software - on a flexible payment basis.


“HP was the first in the industry to offer managed, metered and instant capacity on demand services for our customers who wanted to acquire additional IT infrastructure resources when and where they needed them, and pay for them based on usage,” said Steve Smith, senior vice president, HP Services. “With today’s introduction of HP Flexible Computing Services, we take our utility pricing solutions one step further to offer our customers the ability to plug into HP’s computing resources as needed, making aligning IT resources with fluctuating demand even simpler than before.”

More information on HP’s entire range of utility computing services - from build-your-own assistance to plug-into-HP convenience and the new HP Flexible Computing Services - is available at http://www.hp.com/go/utility.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Oct. 31, 2005, HP revenue totaled $86.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

Intel and Itanium are registered trademarks and Xeon is a trademark of Intel Corp. or its subsidiaries in the United States and other countries. AMD Opteron is a trademark of Advanced Micro Devices, Inc.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to 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 development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2005, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

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