The New HP is Ready
Merged Company Lays Out Customer Offerings, Go-to-market Plans, Brand Strategy and Momentum in Key Customer Segments
PALO ALTO, Calif., May 7, 2002 -- Two business days after legally closing its merger with Compaq Computer Corp., HP (NYSE:HPQ) officially launched the new company with a focus on product and solutions offerings, go-to-market and brand plans, and recent customer wins signaling confidence and support for the merged company.
"After eight months and millions of hours of integration planning by our teams, today we are ready to do business as the new HP," said Carly Fiorina, HP chairman and chief executive officer. "Our management teams are in place in all 160 countries in which we operate. We have three-year product roadmaps for our customers in place for all of our products. More than 80,000 sales, service and support professionals are ready to serve customers. Our Web sites and email systems are combined. Our online store is open for business in the United States, and our joint Web site launched today in six languages and nine countries. All of it under the banner of the new HP. It is a proud and exciting day for all of us."
"The time is right for the new HP," said Michael Capellas, HP president. "Current economic realities are driving the information technology market to HP's strengths. Customers want fewer strategic partners, with global reach and scale. They want complete, end-to-end solutions based on open, industry-standard architectures. And they want access to the best engineering and most innovative technologies -- a hallmark of HP and a strong differentiator. While execution is essential and we have a lot to prove, we are confident in our ability to provide increased opportunity and value to our employees, customers, shareowners and partners. The new HP has what it takes for market leadership."
In a recent press conference, Fiorina and Capellas outlined the following:
Ready for Business
The company's business and functional organizations are in place, with management teams named three layers deep, including regional and country managers and the top 100 corporate account managers. Detailed product roadmaps are complete, including customer support and migration plans. In addition, the company's go-to-market model for each customer segment -- consumers to small- and medium-sized businesses to large enterprises -- is defined and financial targets have been identified with accountability established.
"The new HP is the largest consumer IT company in the world and the largest IT supplier to the small- and medium-sized business market," said Fiorina. "We also have a leading presence in large commercial accounts and multinationals, giving us one of the world's most valuable customer franchises."
The new HP's go-to-market model features a powerful combination of dedicated account teams, the largest global network of resellers, retailers and other partners, and direct and tele-Web sales. The company has already appointed account teams for its top 100 customers globally.
Four core business groups comprise the new HP, each of which is a market leader in its designated segment:
* Enterprise Systems Group, led by Peter Blackmore, executive vice president. ESG provides the key technology assets of enterprise IT infrastructure, including enterprise storage, servers, management software and a variety of solutions. HP products in ESG have
No. 1 market positions in UNIX servers, fault-tolerant servers, Windows(r)-based IA-32 servers, Linux-based IA-32 servers, enterprise storage, management software and high-performance technical computing.
* HP Services, led by Ann Livermore, executive vice president. HPS features a premier IT services team of approximately 65,000 professionals worldwide. HPS, the industry's third-largest IT services organization, is the market leader in mission-critical infrastructure services, services for open IT environments and enterprise-ready Microsoft integration and support services, with the industry's largest channel partner network.
* Imaging and Printing Group, led by Vyomesh Joshi, executive vice president. HP is the leading provider of printing and imaging solutions for consumer and business markets, including printer hardware, all-in-ones, digital imaging devices such as cameras and scanners, and associated supplies and accessories. Through its acquisition of Indigo, IPG is expanding into the digital publishing market.
* Personal Systems Group, led by Duane Zitzner, executive vice president. PSG is the industry's leading provider of personal computing solutions, offering business and consumer notebooks and desktops, workstations, thin clients, handhelds and Internet appliances. PSG also is responsible for HP's emerging technology businesses in areas such as embedded software, embedded computing, home networking solutions and personal storage.
In addition, the new company's Worldwide Operations unit provides the
support and strategic direction necessary to ensure the success of the product business groups for the new HP. Led by Executive Vice President Mike Winkler, Worldwide Operations will responsible for managing the key horizontal processes that extend across the business groups, including: supply chain, e-business, customer operations, total customer experience and quality, global alliances, finance and information technology.
"While size, breadth and market leadership are important, HP is also strong where it matters most, with our customers," Capellas said. "In the three months leading up to the merger -- in what continued to be a challenging IT spending environment and despite the uncertainty surrounding the merger -- our separate account teams booked more than $5 billion in combined new business in the financial services, manufacturing, energy and communications industries. We have not backed off an inch in our focus on customers."
The company also stated that the new hp.com Web site had launched simultaneously today in six languages and nine countries. This gateway to allow customers to easily navigate and search the new HP site, Compaq or both legacy sites has already been translated into 21 languages to serve 72 countries, pending the lapse of legal restrictions in these locales. Within 30 days, the new hp.com site will be deployed in 35 countries representing more than 95 percent of all traffic to the company's Web sites. By the 60-day mark, hp.com will be fully deployed in all countries where legally permissible.
Product Roadmaps and Brand Strategies
The new HP also announced today detailed product roadmaps across the range of its hardware and software offerings, including comprehensive product transition and migration plans to protect customers' investments. (Additional detail on product roadmaps is available in an HP white paper at http://www.hp.com/hpinfo/newsroom/press/index.htm#whitepaper).
"The important message to customers is that the new HP features the broadest and best portfolio of products and solutions in the industry," said Capellas. "We recognize that customers have made significant investments in HP and Compaq technology. We intend to protect those investments with detailed transition and migration plans."
Product roadmap highlights include:
Servers -- HP will become the master brand for all server products, the company said. The company reiterated its commitment to the Intel(r) Itanium(tm) Processor Family (IPF), stating that, with the release of the third-generation Itanium processor (Madison), HP will offer Itanium-based servers from the low end to the high end of the product line, including HP's NonStop Itanium-based servers.
In the industry-standard server category, ProLiant servers will become HP's IA-32 server offering, along with the ProLiant blade server architecture for the data center and the HP's Powerbar blade family that has been optimized for the telecommunications market.
For RISC-based servers, HP will continue with previously published roadmaps for both PA-RISC and AlphaServer systems. PA-RISC servers will be targeted at all new business opportunities as well as the existing installed base; AlphaServers will be primarily focused on their installed base and high-performance technical computing.
The fault- tolerant NonStop server family from Compaq will now be named the HP NonStop Server.
In the UNIX market, HP-UX will continue to be the long-term, strategic UNIX platform for the new HP. Advanced features of Tru64 UNIX, including clustering and file systems, will be integrated into HP-UX over time. HP also will deliver on the previously announced OpenVMS roadmap, including the port to Itanium.
Storage -- StorageWorks will be adopted as the product name for enterprise storage products and storage solutions, OpenView will be the product name for HP's storage software and ENSA (enterprise network storage architecture) will be the acronym adopted for HP's storage architecture.
Software -- HP's software strategy focuses on investments in OpenView management solutions, the Utility Data Center (UDC), Opencall telco solutions and J2EE and .NET middleware stacks.
The company will adopt the OpenView name for all appropriate management software and will integrate TeMIP into the OpenView product family. The HP OpenView product line will focus on integrated management solutions, on extended management reach for both network and IP devices and Web services management.
HP said that it will continue to invest in UDC software by leveraging Compaq Insight Manager and Adaptive Infrastructure offerings as well as Toptools to offer one of the most scaleable and comprehensive management solutions in the industry.
For telco software, the new company will consolidate both HP's and Compaq's telecom software into the Opencall product family that will be used to develop, integrate and deliver voice, data and converged services.
The new HP will be equally strong on UNIX, Windows and Linux-based servers, requiring middleware solutions to support all platforms. HP will leverage key partner company relationships that enhance the middleware stacks around both J2EE and .NET to deliver a comprehensive ecosystem for HP and partners' application infrastructure components. HP will help customers manage the heterogeneous stack environments by providing key interoperability through the company's services and solutions organizations.
Personal Systems -- The personal systems branding strategy is designed to capitalize on the strong equity in the HP brand across a broad range of technology products as well as the strong equity in the Compaq brand for PCs worldwide.
HP announced that customers will be able to purchase both HP and Compaq-branded consumer PCs and notebooks in stores and online. In the commercial PC and notebook product categories, the Compaq brand will be retained and the HP brand will be dropped. All other products, solutions and services will carry only the HP brand. Product names for surviving products will be maintained.
Imaging and Printing -- All imaging and printing categories and product lines remain the same, with the exception of Compaq-branded products. HP and Compaq digital projectors will be combined into a single product line under the HP brand, a transition that will occur over the next 12 months.
HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. Information about HP and its products can be found at http://www.hp.com.