News release

Business Customers Find Mainframe Costs Out of Step with Data Center Budgets

More than 250 customers worldwide switch from mainframes to HP Integrity systems and save up to 70 percent

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HP today announced that more than 250 companies worldwide have migrated to HP Integrity systems from mainframes over the past two years, saving up to 70 percent in operational costs.⁽¹⁾

According to Robert Frances Group, a leading provider of consulting and research, the capital savings range from $1.5 million up to $23 million, with up to an additional operational cost savings of more than $4 million over four years. The study shows HP Integrity servers consumed 41 percent less energy and used 48 percent less space than the IBM z9 mainframes they replaced.⁽²⁾

HP has more than 25 years of in-depth knowledge and expertise in helping mainframe users move core applications that are critical to their business to the right HP environment. This enables customers to achieve significant cost savings that can then be allocated to other strategic, high-value IT projects.

“Customers tell me they feel stuck paying a premium for their mainframe. HP has proven to hundreds of customers that we can unlock savings and provide a path to the future,” said Martin Fink, senior vice president and general manager, Business Critical Systems, HP. “By moving to HP Integrity systems, companies can realize efficiencies in time, energy and operating costs to achieve their business objectives.”

To help customers transition from mainframe computing environments, HP offers multiple programs and services.

HP Application Modernization Services – a comprehensive suite of services within the EDS portfolio that includes portfolio rationalization, application assessment, modernization implementation, custom application development, testing and management, and service-oriented architecture.

HP NonStop FREEdom incentive program – provides qualified businesses an HP Integrity NonStop NB50000c BladeSystem at no charge, along with a full year of HP NonStop platform software.

HP Total Cost of Ownership (TCO) Challenge – a web-based tool to calculate cost savings when migrating from mainframe environments to HP Integrity systems.

HP Financial Services⁽³⁾ offers a variety of leasing and financial services that can facilitate customers’ migration to an HP Integrity system, independent of budget cycles. 

Real customers, real results

Customers around the world who have migrated from mainframe environments verify the improved investment protection delivered by the open, modular HP Integrity systems.

San Francisco Bay Area’s Bay Area Rapid Transit District (BART) launched a business transformation initiative and migrated from a mainframe-based environment to HP Integrity servers running the HP-UX 11i operating system and Oracle® PeopleSoft Enterprise applications. The migration resulted in a 50 percent decrease in paycheck errors and saved the organization $1.5 million annually in mainframe license, lease, applications and maintenance costs.

Astellas Pharma Incorporated, a global pharmaceutical company, strengthened its IT infrastructure and reduced its total cost of ownership (TCO) with the construction of a new sales support system infrastructure centered on the HP Integrity Superdome. As a result, the company realized a 50 percent reduction in system operating costs while also improving business efficiencies.

The Brazilian Navy migrated to an HP Integrity platform running Oracle to establish a more agile data center architecture that can better keep pace with evolving business needs. As a result, they reduced their annual mainframe operating costs by approximately 80 percent.

WGV (Württembergische Gemeinde-Versicherungsverein AG), a regional all-line insurer based in Stuttgart, Germany, built its new business operations on an HP Integrity platform. With HP, WGV achieved the lowest technology cost base in the German insurance industry, realizing a 311 percent return on investment.

About HP

HP, the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

⁽¹⁾ Alinean Inc., “Mainframe Migration Case Studies: A Total Cost of Ownership Comparison,” March 2008, http://www.alinean.com/PDFs/Intel-Mainframe_Migration-TCOStudy.pdf

⁽²⁾ Robert Frances Group, “Breaking the Power Deadlock: The Power and Cooling Benefits of Running on Open Systems,” July 2008.

⁽³⁾ Financing is available through Hewlett-Packard Financial Services Company (HP Financial Services) or one of its affiliates to qualified commercial customers and is subject to credit approval and execution of standard HP Financial Services documentation. Other restrictions may apply. HP Financial Services reserves the right to change or cancel this program at any time without notice.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation. Oracle is a registered trademark of Oracle Corporation and/or its affiliates.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.