HP and Microsoft to Partner on Windows Azure Built on HP Converged Infrastructure

PALO ALTO, Calif., and REDMOND, Wash. — July 12, 2010 — HP and Microsoft today announced their intention to work together on a Microsoft Windows Azure platform appliance that will enable large enterprise customers to confidently and rapidly adopt cloud-based applications as businesses needs change and grow.

The companies will work together to deliver a complete hardware, software, services and sourcing solution that will accelerate customers’ transition to the Windows Azure platform. Customers will be able to manage the appliance with HP Converged Infrastructure on-premises or choose HP data center hosting services.

Enterprise customers adopting cloud services need a comprehensive approach, including application modernization support, an optimized infrastructure platform and flexible sourcing options. With the new Windows Azure platform appliance, HP and Microsoft will help customers rapidly scale applications, deliver new online services, and migrate Windows and .NET-based applications to the cloud. This latest collaboration extends the $250 million Infrastructure-to-Application initiatives HP and Microsoft announced in January and will result in HP delivering these offerings:

  • Data center hosting services. HP Enterprise Services will combine deep systems management expertise, standardized processes and world-class secure data centers to manage the Windows Azure platform appliances for HP customers. HP and Microsoft plan to release a limited production Windows Azure platform appliance for deployment in HP data centers by the end of the year.

  • Converged infrastructure for Windows Azure. HP’s current position as a primary infrastructure provider for the Windows Azure platform, coupled with HP and Microsoft’s ongoing efforts to optimize Microsoft applications for HP’s Converged Infrastructure through extensive joint engineering and development, will allow HP to deliver an industry-leading cloud deployment experience for its customers. The Converged Infrastructure for the Windows Azure platform appliance will include the following:

  • HP Networking, which delivers to customers a flexible network fabric that is simpler, higher-performing and more secure, at up to 65 percent lower cost of ownership than competitive solutions.*

  • HP ProLiant servers, which are highly dense, highly scalable computing platforms that help customers speed application delivery, better utilize IT resources and achieve strong returns on investments.

  • The appliance can be deployed in HP Performance-Optimized Datacenters (PODs), which deliver improved power and data center capacity as well as rapid data center expansion. HP PODs allow customers to increase capacity without the capital expense of brick-and-mortar construction. They will be used in addition to traditional data center deployments.

  • Application modernization, migration and integration services for Windows applications. HP’s expertise in complex environments, specific industries, frameworks, processes and resources will help customers modernize, migrate and integrate their applications while balancing costs and speed when adopting the Windows Azure platform.

“Customers want to refocus their resources in managing their business and out-task IT processes like software acquisition and maintenance,” said Sean Kenny, senior vice president, Worldwide Applications and Business Process Outsourcing, HP Enterprise Services. “HP is the only technology company that can combine the Windows Azure platform with the industry’s best people, processes and Converged Infrastructure technology to remove the complexity of migrating applications to the cloud.”

“Microsoft and HP will align engineering, sales and professional services to provide enterprise customers a full range of cloud services and technologies where they want it and how they want it,” said Bob Muglia, president of the Server and Tools Business at Microsoft. “By adopting the Windows Azure platform appliance, customers will have a clear path to adopt a proven cloud platform that integrates with their existing investments and expertise. The Windows Azure platform appliance will provide customers with a turnkey solution to address new business scenarios that require rapid scaling of applications and deliver services that are predictable, immediately consumable and more cost-effective.”

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP (NYSE: HPQ) is available at http://www.hp.com

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

* “ROI of Switched Ethernet Networking Solutions for the Midmarket,” Randy Perry and Abner Germanow, IDC, August 2009.

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; any statements regarding 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 macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2010 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, 2009. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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