HP Integrity Server Business Shows Strong Growth in Emerging Markets

The wins contributed to the triple digit year-over-year revenuegrowth HP saw in the Integrity line in the so-called BRICcountries.(1)

According to industry analyst firm IDC, combined IT spending inBRIC nations is expected to grow at a compound annual growth rate of13.9 percent and reach more than $100 billion by 2009.(2) HP plans toexpand its efforts in these countries as their future IT spendingintensifies.

"Customers in emerging markets are building IT infrastructuresfrom scratch, not merely updating or replacing older ones, and HPIntegrity servers are the cornerstone of these next-generation datacenters," said Rich Marcello, senior vice president and generalmanager, Business Critical Servers, HP. "Customers choose Integritybecause innovations around flexible capacity, secured availability andsimplified management deliver superior return on investment versuscompetitors' offerings."

Bharat Forge Limited of India, the world's largest forgingconglomerate, turned to HP to meet challenges associated with theirgreatly accelerated business growth. The company is using HP Integrityservers with HP-UX 11i and HP StorageWorks arrays running SAP forproduction planning, sales, manufacturing and materials management.

"HP supported our business expansion while saving us at least 30to 40 percent in costs annually through superior system scalability,"said Yogesh Zope, vice president, IT Services, Bharat Forge Limited."HP's local Indian presence enhanced their ability to addmanufacturing expertise across our value chain."

Additional HP Integrity customers in India include Astra Motor III(ASMO III, automotive manufacturing/supply chain), ITC Ltd. (consumerproducts) and Tata Teleservices (telecommunications).

New HP customer engagements in Russia include Avtovaz (automanufacturing) and The Finance Committee of St. Petersburg, whichchose HP to increase the efficiency of budgeting, asset use andsecurities distribution, as well as to improve the reliability andscalability of custom finance applications. HP helped consolidate itsdata center and enabled flexible resource allocation through anAdaptive Enterprise architecture and a fault-tolerant configuration.

"We wanted to modernize our information infrastructure to betteradapt to the rapid changes in the Russian economy, and HP recommendedwe consolidate and virtualize our data center," said Tatyana Sergeeva,deputy head, Administration of Automation Information, FinanceCommittee of St. Petersburg. "Since we chose standards-based HPIntegrity servers, we are secure with our investment."

HP customers in Brazil and China include Seara Alimentos S.A.(manufacturing/food processing), Tribunal Superior Eleitoral (publicsector/elections), China Pan Steel Group (manufacturing), Industrialand Commercial Bank of China (financial services), Tsingua University,CIECC (Ministry of Commerce information support), Second AffiliatedHospital of Dalian Medical University, Hunan Labor & Social SecurityDepartment, Guangxi Post (post office) and Huazhong University ofScience & Technology.

Regional market trends driving HP's growth

Sixty-five percent of HP's first quarter 2006 revenues came fromoutside the United States. In the BRIC nations, customers aredemanding regional vendor presence and local capabilities such asdesign and solution centers, authorized training centers, and researchand development facilities. HP is responding to this demand with newfacilities such as the Linux Expertise Center in Bangalore, India, andthe new HP Labs in Beijing.

Customers also are turning to HP for its comprehensive solutionsand localized domain expertise in rapid-growth vertical segments,including network service providers, financial services,manufacturing, public sector and oil and gas.

More information on HP Integrity servers is available atwww.hp.com/go/integrityserversolutions.

About HP

HP is a technology solutions provider to consumers, businesses andinstitutions globally. The company's offerings span IT infrastructure,global services, business and home computing, and imaging andprinting. For the four fiscal quarters ended Jan. 31, 2006, HP revenuetotaled $87.9 billion. More information about HP is available atwww.hp.com.

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(1) Percentage of growth from HP's first fiscal quarter 2005 tofirst fiscal quarter 2006.

(2) IDC, "Brazil, Russia, India, China -- IT Market Outlook inFour Emerging Markets," #LA3617, January 2006.

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