Compaq’s Enterprise UNIX strategy Software Products Business Manager, EMEA Enterprise Computing Group Peter van de Moosdijk

OpenServer

Agenda Customer Context Compaq and UNIX Today Compaq’s UNIX Strategy & Directions OpenServer

Internet-enabled Environment Supply Chain Partners Global eBusiness infrastructure service providers New eCommerce business Established companies add e Business Sales Partners Individual and Business Consumers

High Performance Computing and the Emerging Internet Economy  Emerging internet economy requires mission- critical levels of availability, performance & scaling The 7x24x365 storefront The 7x24x365 storefront Zero tolerance for outages or bottlenecks Zero tolerance for outages or bottlenecks  Compaq uniquely delivers Internet-enabled, NonStop® high performance computing solutions required in the Internet Economy

Server Workloads by OS: 1999 WW Customer Spending $B Source: IDC Directions ‘99

 95% of Fortune 1000 are installing both UNIX and NT side-by-side UNIX and NT side-by-side  Production-class Servers RISC/UNIX is the leader RISC/UNIX is the leader  Application-class Servers NT is the leader NT is the leader % 39% 41% Source: International Data Corporation (IDC) Customers Will Deploy Heterogeneously Worldwide Server Marketplace

Agenda Customer Context Compaq and UNIX Today Compaq’s UNIX Strategy & Directions

 Highest performance and reliability for mission critical applications  Benefits of 64-bit computing today  Strong NT interoperability Today - Leadership UNIX Addressing Customers Needs  Open source model  Carrier Grade Telco ENS  High volume, shrink- wrapped Channel Ready Solutions  Currently invested in OpenServer or UnixWare OpenServer

Sources: Analysts, Compaq and vendors Compaq: A Leader in UNIX Compaq Tru64 UNIX  Rated #1 or #2 in overall capability for past 6 years!  "Best OS for Web Serving” (BYTE Magazine, March ‘98) System & Enterprise application performance #1 System & Enterprise application performance Decision Support (SMP) #1 Decision Support (SMP)  Industry leading Java performance Linux  #1 RISC platform SCO  #1 Server Platform Tandem Integrity UNIX  #1 Fault Tolerant UNIX for Telco

Customer Satisfaction with Tru64 UNIX Source: GartnerGroup’s Datapro March 1999

Customer Satisfaction with Vendor/Supplier Source: GartnerGroup’s Datapro March 1999

IBM 19% Compaq* 18% HP 14% SUN 13% Others 36% *includes Digital 137k 134k 103k 92k 262k Sources: IDC, SCO (Units K) Compaq and UNIX: The 2nd Largest UNIX Server Vendor 1997

Agenda Customer Context Compaq and UNIX Today Compaq’s UNIX Strategy & Directions

#1 provider of UNIX servers by 2002 and…  Be the leading NonStop® enterprise UNIX platform in targeted markets  Strengthen #1 position in UNIX SMB market  Expand on leadership in Linux Compaq UNIX Strategic Objectives

Volume Markets Specialized Markets Specialized Systems Industry- standard Systems SCO NonStop® Himalaya Himalaya NetWare WNT Linux/Tru64 UNIX NonStop® Integrity Integrity Operating System Positioning Windows 2000 OpenVMS

 #1 server vendor OpenServer OpenServer UNIXWare UNIXWare Monterey for IA64 Monterey for IA64  NonStop ® Clusters for UnixWare  Shrink Wrapped, Channel Ready UNIX Strategy  Leadership product Scalable Scalable Robust Robust High performance High performance NT Interoperability NT Interoperability  Target markets Partner-based Solutions Partner-based Solutions  Volume open source model  Leadership performance  Tru64 UNIX Compatible Support customer choice of UNIX software today, provide on IA64 when commercially available

Small & Medium Business High Volume Shrink-wrap Markets Replicated Sites SCO Strategy  Deliver the best SCO platforms Configuration and Management Configuration and Management Availability and Reliability Availability and Reliability Price/performance Price/performance  Provide NonStop® Clusters for UnixWare  Endorse Monterey Provides path for SCO OpenServer and UnixWare customers to IA64 Provides path for SCO OpenServer and UnixWare customers to IA64 OpenServer

Enterprise Applications Telco & Internet High Performance Technical Computing Compaq Tru64 UNIX Strategy  Extend product leadership Industry leading UNIX clusters Industry leading UNIX clusters Scalability, reliability, and performance Scalability, reliability, and performance Best NT interoperability Best NT interoperability  Deliver end-to-end solutions Partner-based Partner-based Focused markets Focused markets  Available on Alpha today IA 64 when commercially available IA 64 when commercially available Business Intelligence

Tru64 UNIX ISV Plan  Crisp segmentation enabling targeting and focus Invest with segment leaders and “completers” Invest with segment leaders and “completers”  Aggressive focused downstream engagement  Solutions focus: ActiveAnswers Program  Leverage Compaq’s NT Strength with Partners  Create new ISV opportunities via Tru64 UNIX/Linux “familiness”

Enterprise Applications 8% share overall, higher in target industries. (e.g % in Telco) High Performance Technical Computing High Performance Technical Computing 36% mid range share, 46%YOY growth #2 in HPTC Business Intelligence #1 in SMP Business Analysis revenue 16% share in ‘97, 87% YOY growth Primary Industries: Telco, Finance, Manufacturing, and Public Sector Tru64 UNIX Target Markets Telco & Internet #1 in Billing/ Customer Care in Europe #2 in ISP high end Webservers

Oracle8i for Tru64 UNIX “Compaq Tru64 UNIX has always been the first operating system supported by Oracle’s 64-bit database releases.” Gary Bloom Senior VP, Oracle.

"We are building the most powerful bioinformatics computing facility in the world to offer our customers the most complete genomics data at the earliest date with the fastest access. Compaq's AlphaServer ES40 systems with Tru64 UNIX will be the building blocks in delivering this capability.” Marshall Peterson Director, Technology and Infrastructure Celera Genomics Celera Chose AlphaServers and Tru64 UNIX

Tru64 UNIX with Alpha: Ideal Web Hosting Platform Internet Performance Performance Reliability Reliability Scalability Scalability Interoperability Interoperability Industry leading Java Performance 28.4 SPECjvmTM 28.4 SPECjvmTM Internet Energized Integrated web server tools and applications Integrated web server tools and applications 58% faster than Sun Alpha Web Server Backend Systems Internet

“We had to work around all kinds of problems in other operating systems, like Sun’s Solaris and IBM’s AIX. With Tru64 UNIX, there are no surprises. It’s very reliable. We haven’t hit the upper end yet. That was the first sign that we had found an outstanding product.” Fred Nixon, Vice President Engineering MindSpring Enterprises, Inc. Internet Customers for AlphaServers and Tru64 UNIX

Internet Enabled Incredibly Scalable NonStop ® Interoperable with Microsoft Environment CompaqTru64 UNIX: Proven Enterprise Platform Investing to maintain our product leadership Supported with World-class Services and Partnerships

Tru64 UNIX Product Directions - Scalability  Single System Scaling EV6 Optimizations EV6 Optimizations 100+ CPUs 100+ CPUs 100+ GB Memory 100+ GB Memory 100’s TB Storage 100’s TB Storage  Partitioning/Workload management Application Resource Partitions Application Resource Partitions System Partitions System Partitions  Multi-node Scaling for Parallel Applications

Tru64 UNIX: Product Directions - Reliability, Availability, Serviceability  Combination of platform availability, application interaction, management and services  99.99X% availability today 64 bit maturity 64 bit maturity TruCluster Leadership TruCluster Leadership  X% availability in 2000 Merged TruClusters and Tandem NSC Merged TruClusters and Tandem NSC Disaster Tolerance Disaster Tolerance  % in 2001 Integrity SA (Tru64 Alpha/Lockstep) Integrity SA (Tru64 Alpha/Lockstep)

Increasedavailability DecreasedManagementCosts TruCluster Server V5 The Best Cluster Management? The management you never do!  Uniform shared root  Simplified System Management Management

Develop Manage Deploy Tru64 UNIX and Windows Side-by-Side One Step Management Microsoft Development Tools Extended for UNIX Server Development Simple, Secure Access to Shared Resources Compaq Offers Differentiation at Every Stage in the Lifecycle

Most Windows NT Friendly UNIX Technology Agreement with Microsoft:  Focused on solving the next biggest problems of interoperability: Enhanced administration Enhanced administration Single Sign-On Single Sign-On Common security Common security Active Directory Active Directory  Joint engineering to enhance ability to develop cross platform applications, including databases COM technology for Tru64 UNIX COM technology for Tru64 UNIX

 Fannie Mae  Boeing  Citibank  Boston Edison  Lucent Technologies  Amazon.com  Mindspring  Individual Inc.  Lycos  Alcatel  Deutsche Telecom  ADP  Glaxco  Sears  NASDAQ/MCI  Reuters  Ford  Ferrari  Genentech  CERN  Digital Domain  Peugeot x x x x x x x x Enterprise Applications Applications Telco & Internet High Performance Technical Computing BusinessIntelligence Tru64 UNIX for Mission Critical Customers

Alpha and Linux Alpha is his “personal favorite CPU architecture” Linus Torvalds 5/28/98

x x x x x x x x $ $ ISP/Telecom & Internet Servers High Performance Technical Computing Education/ Government Linux - Integral to our Enterprise UNIX Strategy  Deliver the best Linux platforms: Linux-ready Alpha and Proliant systems Linux-ready Alpha and Proliant systems Available pre-loaded from our partners Available pre-loaded from our partners  Extend Alpha leadership in High Performance Linux  Invest in Tru64 UNIX/Alpha compatibility and familiness  Provide Support Services

Air Cover Focused Execution Demand Creation Aligning for Market Success

Among top 5 Systems Integrators worldwide 24-hour, 365-day support 550 locations in 114 countries Telecom & Financial industries expertise Telecom & Financial industries expertise Business critical for uninterrupted business operations Business critical for uninterrupted business operations Alliances with industry leaders Alliances with industry leaders 30,000 channel partner service resources 29,000 employees 29,000 employees n 2,200+ NT Certified n 3,000+ UNIX Engineers n 15,000 Microsoft- trained specialists n 2,200+ NT Certified n 3,000+ UNIX Engineers n 15,000 Microsoft- trained specialists Innovative service packages Compaq Services: Global Coverage for Global Businesses

Addressing Customer Needs for NonStop ® Internet-enabled Computing The emerging Internet economy requires mission-critical levels of availability, performance & scaling  Compaq provides solutions from SMB to the Datacenter Strong partnerships with solution providers Strong partnerships with solution providers Worldwide service and support Worldwide service and support  Compaq Tru64 UNIX delivers NonStop ® capabilities  Compaq’s goal: Continued UNIX market leadership The best, most robust UNIX solutions The best, most robust UNIX solutions – Most reliable – Most scalable – Best integrated with NT