1. © 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Reaping the Benefits of the Community Development Model Bdale Garbee Open Source & Linux CTO

2. 2 Market advancement, customer concerns HP participation in community development Deployment examples – customers and HP Agenda

3. 3 Open Source Momentum Adoption Complexity Today MiddlewareApplications OS & Internet

4. Open Source an Integral Part of IT 2% Primarily Open Source 25% Mix of Commercial and Open Source, with a growing percentage of Open Source 35% Mix of Commercial and Open Source 38% Primarily Commercial Source: InformationWeek, 11/2004

5. 5 Why Open Source and Linux Access to software – try before you buy No vendor lock-in Community engagement – fixes & features Great performance Security through openness Choice of support models Ability to participate and influence directions

6. 6 Heterogeneity Persists WW Linux Server Revenue leads OS growth Source : IDC WW & US Server 2004-2008 Forecast update CAGR 23%

7. 7 Security Fear open source community will splinter or disappear Unexpected license costs (i.e. SCO asking for Linux) We don’t have the skills or familiarity Immaturity of products Lack of support Base: 95 IT decision-makers using or planning to use Linux or open source in next 12 months Source: Open Source Usage Is Up, But Concerns Linger Forrester Research, Inc., June 2005 20% 26% 33% 36% 42% 60% Open Source Customer Pain Points What are your concerns? 16% Fear of getting sued over copyrights and patents Lack of applications

8. 8 Market advancement, customer concerns HP participation in community development Deployment examples – customers and HP Agenda

9. 9 Community Development Model A key attribute of Linux and many Open Source applications is that they are developed and supported “by the community” What does that mean? −No one company in charge −A range of contributors with varied interests, abilities, and motivations

10. 10 Freedom of Choice Users have flexibility in how they acquire support for open source technology Any user can become a developer, or pay someone to develop or support open source software on their behalf If “upstream” ever behaves unacceptably, developers have the power to “fork”

11. 11 Linux & Open Source Adoption Companies increasingly considering open source Some concerns over perceived deployment risk HP contributes market stewardship, optimized infrastructure, and comprehensive services, enabling customer success!

12. 12 March 8, 2005 12 The HP Approach to Linux R&D Embrace Linux for what it is … a disruptive technology −Don’t pre-suppose what Linux can and can’t do −Target areas where Linux fits now −Contribute to Linux development as needed to meet requirements −The ultimate market and use models are not yet known … be nimble! Participate as a member of the community, consistent with community values and behaviors, to develop enterprise capabilities and robustness on Linux that are of interest to HP Work with Linux distributions and ISVs to deliver innovative and effective solutions for Linux in the Real World

13. 13 HP's widespread contributions to Open Source & Linux Organizational Leadership −Sponsorships of Linux International (since 1995), Free Software Foundation, Free Standards Group, Open Source Software Institute, Open Source Dev Labs −Event sponsor for kernel summit, OLS, LCA, Debconf, FISL, GUADEC, KDE summit, X.org dev summit, etc −Instrumental to Defining Carrier Grade Linux (telecom) Project Development −Dedicated HP Open Source & Linux R&D Lab −Leader in Eclipse Development Environment −Drove OpenSSI Cluster Project −Founder and sponsor of handhelds.org −Intel ® Itanium ® (IA-64) Kernel Maintenance Individual Community Activism −Extensive Support of SAMBA and Apache Projects −Debian Project Leadership and Maintenance opensource.hp.com

14. 14 A commitment to open source 2,500+ developers focused on Linux and open source projects 6,500+ service professionals worldwide to implement and support Linux and open source 150+ shipped HP products with embedded open source software 50+ open source software projects initiated 300+ open source printer drivers provided to community

15. Open Source and Linux Leadership By the Numbers: Over 6 years Linux market share leadership 1 Services & subscription revenues: 10X CAGR in FY04; FY05 faster! Linux training revenues: 94% CAGR since FY03 Track Record of Innovation: 1 st to ship over 1M Linux servers worldwide 2 -- 45% more than IBM 1 st to offer Linux indemnification – ongoing since 2003 1 st in industry performance benchmarks 3 1 st to test and provide full support for JBoss and MySQL 1 st to integrate, deliver, support multi-vendor open source & commercial stack 1 Per IDC Worldwide Quarterly Server Tracker (May 2005), HP (combined with Compaq) ranks #1 in WW Linux server factory revenue and unit shipments from 1998 to 2004. 2 Source: IDC's Worldwide Quarterly Server Tracker, May 2005 3 Source: www.tpc.orgwww.tpc.org

16. 16 Market leadership Manageability and virtualization for optimal agility Award-winning high availability clustering Linux indemnification Security and common criteria certification HP eliminates customer pain points for open source and Linux ChoiceIntegration Industry-Leading, Open Standard Architectures Confidence Comprehensive ecosystem from best-of- breed partner portfolio Commitment to advancement of open source technology HP Linux Reference Architectures Factory Express for pre- integrated customization Robust portfolio of HP consulting, integration, and technical support delivered worldwide Overall accountability

17. HP Linux Reference Architectures Tested, integrated, and fully supported HP Global Technical Support, Consulting & Integration Services Value-add compléters HP OpenView HP Systems Insight Manager HP Serviceguard Veritas NetBackup Management tools Availability tools Backup tools Foundation HP StorageWorks HP Bladesystèm HP ProLiant & Integrity Servers HP StorageWorks HP Bladesystèm HP ProLiant & Integrity Servers Red Hat, Novell/SUSE Agents Drivers Kernel features Agents Drivers Kernel features systèm software Linux distribution Hardware platform Middleware Partners Open Source Commercial

18. 18 Market advancement, customer concerns HP participation in community development Deployment examples – customers and HP Agenda

19. 19 Customer benefits Continental Airlines HP LRA open source middleware implementation Business needs Automate tedious 30-minute manual process Add process tracking absent from existing manual process Increase customer satisfaction Capture lost revenue Implement cost-effective solution HP Solution 3,000+ daily departures throughout Americas, Europe, Asia – serving more destinations than any other airline Project to automate process for passengers changing flight schedules Automate tedious 30-minute manual process Add process tracking absent from existing manual process Increase customer satisfaction Capture lost revenue Implement cost-effective solution HP LRA, HP consulting services 3 HP ProLiant DL 585 DB servers (RHEL AS 3, MySQL) 8 ProLiant BL20p application servers (RHEL ES 3, JBoss) StorageWorks EVA 3000 (database) High availability with HP Serviceguard for Linux Linux & Serviceguard support Simplicity Single vendor solution for hardware, Linux, high availability, and support Agility Fully automated process to reissue tickets with ~2 second response Value Cost-effective solution using open source software Increased reissued ticket revenue >100% in 1st year

20. 20 Customer benefits Continental Airlines HP LRA open source middleware implementation Business needs Automate tedious 30-minute manual process Add process tracking absent from existing manual process Increase customer satisfaction Capture lost revenue Implement cost-effective solution HP Solution 3,000+ daily departures throughout Americas, Europe, Asia – serving more destinations than any other airline Project to automate process for passengers changing flight schedules Automate tedious 30-minute manual process Add process tracking absent from existing manual process Increase customer satisfaction Capture lost revenue Implement cost-effective solution HP LRA, HP consulting services 3 HP ProLiant DL 585 DB servers (RHEL AS 3, MySQL) 8 ProLiant BL20p application servers (RHEL ES 3, JBoss) StorageWorks EVA 3000 (database) High availability with HP Serviceguard for Linux Linux & Serviceguard support Simplicity Single vendor solution for hardware, Linux, high availability, and support Agility Fully automated process to reissue tickets with ~2 second response Value Cost-effective solution using open source software Increased reissued ticket revenue >100% in 1st year

21. 21 Simplicity Flexible SOA that eases enhancement of key business applications through reusable services (code) Agility Integrated HP open source solution, delivering flexibility, scalability, & maintainability Value Decreased TCO Full life-cycle consulting (strategy, architecture, design, construction, testing, roll-out, support) Migration to open source and J2EE – HP LRA with JBoss & Oracle 9i database Implementation of Service- Oriented Architecture (SOA) Project management Reduce infrastructure costs via flexible, scalable corporate-wide platform based on Linux Easily add functionality to core business applications Retire aging infrastructure that was taking up valuable data center space Customer benefitsHP solutionBusiness needs DreamWorks DreamWorks LLC is a producer of live- action motion pictures The HP difference: Open source solutions maturity State-of-the-art architecture, tools, reusable code, & maintainability Industry leading development environment, tools, and services team Lower overall costs

22. Domain Name Service Infrastructure Migration to industry standard Linux architectures -- Consolidation lowers HW & maintenance costs Business Challenge Overall cost savings Consolidation of domain servers and sub-domains Application feature availability Easier system expansion Solution 250 ProLiant Servers worldwide running Red Hat Bind v9 (versus 4.x) NTP – network time protocol for GPS time synchronization DHCP from ISC Results 33% savings on hardware Four fewer domains Greater scalability Ability to offer NTP & DNS services to trade customers Easier management and upgradeability “The availability, cost-effectiveness, and trust we have in Linux have allowed us to deploy it almost everywhere. Today Linux is so intertwined in our network that if it were to be replaced, it would result in substantial performance and cost issues.” Richard Biever, HP IT Security Engineer HP quote

23. LaserJet Core Technologies Lab Core firmware development moving to Linux -- Commonality reaps long-term flexibility/savings Business Challenge Improve build performance to support expanding firmware code base Support HW & ASIC dev Select long-term OS strategy supported by critical tool vendors Lower costs Solution Up to 1000 HP XW 8x00s with RH 9 (RHEL3/4 NLD9) 70+ Linux ASIC WS (RH8/9) using Synopsis, Cadence 2+ 64-bit Opteron boxes for high-end HW sims (SLES9) Server infrastructure staying on HP-UX 11i 9000/800s Results Better build performance for firmware developers Tool performance improvements (and better availability) for hardware developers Lower hardware expenditures "Linux offers us enough reliability, performance, and tool availability, that it is now a current focus and direction for our R&D development environment." Gerry Weber, HP LaserJet Global Support Team HP quote

24. Global Delivery Infrastructure Services New wireless configuration management software -- Worldwide deployment improves efficiency/support Business Challenge Merger with Compaq in 2002 created diverse, widespread, and largely unmanageable WLAN Set security configuration parameters across different models of access points (1,400 in Americas, 500 EMEA, 700 in AP) Solution Linux-based AirWave Management Platform to configure and manage multi- vendor access point mix Key component in SecureWLAN initiative for rolling out & managing wireless networking in 900+ offices in 128 countries Results Trouble ticket resolution time reduced 75% IT staff spends 25% less time on wireless networking operational issues such as AP config & perform mgt Wireless-related support issues resolved 4X faster HP quote “This all translates to saving HP big bucks on wireless networking management.” Bobby Burch, Project Leader and network management engineer

25. Cross-Enterprise Dependence Provisioning & lifecycle support to 15,000+ Linux devices LaserJet printer design lab (1,000 developers) Incoming email (3TB/year) routed through Linux firewalls Core DNS infrastructure (Bind) Enterprise directory (12 systems) Corporate wireless network (Airwave) Network time synchronization Secure worldwide instant messaging Everyone at HP uses open source and Linux every day, when browsing the web, sending email, chatting, or using HP networks in any manner.

26. 26 Parting Words HP’s participation in the Open Source community is symbiotic HP confidently deploys and depends on Open Source & Linux in our IT infrastructure HP’s commitment, experience, and portfolio enable our customers to confidently reap the benefits of Open Source & Linux

27. Check us out at: www.hp.com/go/linux