Introducing HP & Microsoft Solutions for the People-Ready Business

REDMOND, Wash. — Dec. 13, 2006 — Microsoft Corp. (Nasdaq “MSFT”) and HP (NYSE “HPQ,” Nasdaq “HPQ”) today announced a three-year agreement to deliver an expanded portfolio of solutions for enterprise customers around the world. HP is the first premier global partner to deliver comprehensive solutions for the People-Ready Business, Microsoft’s vision for how people, armed with the right software, are the key to driving business success.

“With the recent announcement of the largest product launch to business customers in our company’s history with Windows Vista™ and the 2007 Microsoft® Office system, we are bringing to market more than 30 new products and services in the next year that will further enable People-Ready Businesses,” said Kevin Turner, chief operating officer at Microsoft. “Through our collaboration with HP, our more than 20,000 joint customers will have access to an expanded set of solutions and services to tackle their most pressing business problems.”

Microsoft Chief Operating Officer Kevin Turner (L) and Ann Livermore, executive vice president of HP’s Technology Solutions Group, announce a three-year agreement between their two companies to deliver hardware, software and services for business customers. Redmond, Wash., Dec. 13, 2006.

“Extending our strategic alliance with Microsoft further strengthens HP’s enterprise strategy, which is focused on empowering CIOs to align IT with business by delivering more cost-effective, scalable, secure ways of enhancing employee productivity,” said Ann Livermore, executive vice president of the Technology Solutions Group at HP. “HP itself is a great example of the power of Solutions for the People-Ready Business, as we are using many of the technologies in the portfolio to empower our people to conduct business at any time, from anywhere.”

To help enterprise customers worldwide realize greater value from their existing IT assets, capitalize on next-generation technologies, and achieve a more agile, adaptive enterprise, the new HP & Microsoft Solutions for the People-Ready Business portfolio will focus on five high-growth areas of IT investment: messaging and unified communications; collaboration and content management; business intelligence; business process integration; and core infrastructure.

John Gantz, chief research officer with IDC, said the agreement is significant for customers. “This agreement means that the two companies and their combined ecosystems have an opportunity to bring complete solutions to their customers in these critical areas,” he said. “Just the software markets alone in business intelligence, collaboration, content management and infrastructure software running on Windows® will be a $49 billion market in 2007. Add in communications, hardware, and services, it is easily over $100 billion.”

Building on a more than 20-year alliance, Microsoft and HP plan to invest at least $300 million over three years to cover collaborative efforts in solution development, testing, validation, deployment, and joint sales and marketing. Additional components of this initiative include these:

  • Expansion of a joint solutions portfolio to include new and updated offerings that enable customers to capitalize on the shift toward the next-generation data center trend, in the following high-growth solution areas:

  • Messaging & Unified Communications

  • Collaboration & Content Management

  • Business Intelligence (BI)

  • Business Process Integration

  • Microsoft Core Infrastructure

  • Creation of a new, dedicated Microsoft Solutions Practice chartered with the ongoing design, development and launch of Microsoft-specific offerings. HP will ensure that over 22,000 highly skilled professionals at the company are prepared to deliver on the promise of the People-Ready Business, and the number will grow to 30,000 or more Microsoft-skilled professionals over the next three years.

  • Increased joint development in additional solutions to help ensure that all solution components provide customers with the greatest return on investment.

  • Establishment of a Solutions for a People-Ready Business Training Program that will offer a curriculum that covers both technical and sales training in all the new solution focus areas and which will result in more than 3,000 newly Microsoft-trained consultants at HP.

Microsoft and HP share more than 20,000 joint customers worldwide today, many of which have already begun deploying products in the Solutions for the People-Ready Business Portfolio. Microsoft recognizes HP Services as Worldwide Prime Integrator for Microsoft’s next-generation products and technologies, which can deliver one of the broadest IT portfolios to customers around the world.

“HP consultants provided a great deal of education to ensure that our people quickly became familiar and well-versed in Exchange administration,” said Brian Shield, executive vice president and chief information officer at The Weather Channel. “Everything was exceptionally well-aligned as we implemented our HP & Microsoft Solutions for the People-Ready Business, like ‘the perfect storm’ with the many different elements coming together to produce a successful outcome. We were extremely pleased with the HP team consultants’ high level of commitment to success and their ability to guide a smooth implementation.”

More information about the HP & Microsoft Solutions for the People-Ready Business can be found at

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended October 31, 2006, HP revenue totaled $91.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

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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.

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 achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

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