Microsoft Windows Media Platform Chosen by Hewlett-Packard For Digital Media Solution

For Digital Media Solution

SAN JOSE, Calif., Dec. 7, 1999 — Today at Streaming Media West ’99, Microsoft Corp. announced that Hewlett-Packard Co. selected Microsoft® Windows Media TM streaming technology as a cornerstone for its Enterprise and Commercial organization’s global marketing communications activities. Windows Media’s cost-effective and high-quality corporate streaming solution has led to additional deployments through groups across the HP enterprise business. HP’s experience demonstrates the growing momentum among corporations turning to Windows Media and highlights the strategic value and cost savings that can be achieved with streaming media solutions for reaching geographically dispersed employees and partners.

“HP chose Microsoft Windows Media over other streaming technologies because of the audio and video quality, comprehensive functionality, and widespread availability,”
said Nick Earle, senior vice president and chief marketing officer for HP’s Enterprise and Commercial business.
“HP is leveraging new media and e-broadcasting technologies to strengthen our marketing messages.”

To quantify the business impact of Windows Media at HP, Microsoft commissioned Aberdeen Group Inc., an analyst firm that tracks new media, to study HP’s unique solution. Aberdeen’s analysis concluded that HP realized a cost savings of $1.2 million in its first year of using Windows Media for its corporate communications initiatives — a return on investment of 1,800 percent, which paid for the implementation in just one month.

“By deploying streaming media using Windows Media and application services from Network24, HP was able to streamline product introductions, increase the effectiveness and reach of its communications, and significantly reduce costs,”
said David Dines, senior analyst for Aberdeen Group.
“At Aberdeen, we see this leadership by HP as part of a growing trend among corporations that are beginning to see the benefits of streaming technology. Windows Media is well-positioned to help fuel this growth throughout the enterprise.”

To date, HP has deployed Windows Media across some of its most important enterprise communication functions, including product launches and sales-force training. HP is now producing and broadcasting approximately 10 webcasts per month, with indications that programming will increase in 2000.

“Windows Media and Network24 enabled us to coordinate a synchronized global rollout that was cost-effective and let us communicate with all of our audiences simultaneously,”
Earle said.
“Our success with this first streaming solution is leading other HP groups to recognize the value of streaming media in our communication efforts — both monetarily and through enriched interaction.”

The HP Solution

HP’s worldwide marketing group for the Enterprise and Commercial organization set about to enhance and streamline key communications methods of the product launch process in accord with the company’s recently announced e-services strategy. Challenged with the need to shorten product launch cycles and compress schedules, the group chose streaming media to replace road shows, audioconferences and videoconferences and provide a better-coordinated, more easily accessible solution for educating and training sales and marketing employees across the company.

For example, in one scenario, HP was able to train a global sales staff of 1,000 people on a new product in just one week. Using Windows Media and the interactive solution from Network24 Communications, HP was able to train everyone, take and answer questions, and archive the training session for those who missed the webcast. HP webcasts can be viewed at http://www.hp.com/go/live/ .

In addition to internal communication and training efforts, HP is using streaming media to reach out to partners and customers. Designed for the Internet, HP
“Business Intelligence Live”
is an interactive webcast series with the mission of educating customers, establishing HP’s leadership position, and generating prospects for the company’s products and services.

To deploy its streaming media solution, HP chose the services of two companies: Microsoft, for its Windows Media Technologies, and Network24, a next-generation Internet broadcasting company and certified Microsoft Windows Media Service Provider, for hosting and managing the live and archived content. HP uses Microsoft Windows Media Encoder and Windows Media Services for the creation and distribution of content and the Windows Media Player for displaying the streams on client desktops.

Aberdeen Study

In an effort to increase the availability of data that documents the business case for using streaming media in the enterprise, Aberdeen Group undertook a case study analysis of HP’s installation. HP was chosen because of its leadership in the deployment and use of streaming media to enhance a wide range of communications.

Aberdeen Group found that HP needed to invest approximately $60,000 in the first year to implement its streaming media solution. In return, HP was able to recognize approximately $1.2 million in direct cost savings during the first year relative to other options, which have traditionally included multi-city road shows, audio bridges and satellite links. Based on simple and conservative calculations, this represents a return on investment of more than 1,800 percent. The Aberdeen study is available at http://www.microsoft.com/Windows/windowsmedia/archive/casestudies/hewlett/ .

About WindowsMedia.com

WindowsMedia.com ( http://windowsmedia.com/ ), part of the MSN TM network of Internet services, is among the fastest-growing major audio and video guides on the Internet. WindowsMedia.com provides access to localized audio and video content worldwide, including major music and video events and entertainment from more than 1,000 content providers.

About Windows Media Technologies

Windows Media Technologies is the leading digital media platform, providing consumers, content providers, solution providers, software developers and corporations with unmatched audio and video quality. Windows Media Technologies 4, which includes Windows Media Player, Windows Media Services, Windows Media Tools and the Windows Media SDK, is available for free* download at http://www.microsoft.com/windows/windowsmedia/ . The Windows Media Player is the fastest growing media player. More than 50 million copies have been downloaded to date — growing by more than one every second.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

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Microsoft and Windows Media are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

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