HP Confidential2 Agenda Overview Financial Measurement and Return −Objectives for the pilot Time Lines Customers and their Challenge Solutions Engagement and Execution Model Reseller Profile and Skill Set Competitive Landscape Draft for discussion only
HP Confidential3 Program Overview This is a 3 month pilot to build out and test a process to sell specific ITC solution bundles or “happy meals” to qualified customers who want to shift their IT spend from “maintenance to innovation”. The program will use 4 selected resellers and has a stated goal of improving margin via increase attach. The process uses almost all existing infrastructure components and is based on methodologies developed in Americas, EMEA and APJ around the use the AOG tool. The pilot will be deployed in NA first. The target customer will be selected from below the C&I 700 and qualified via a lead generation campaign based on data contained within the “hard hanks” database and a “needs assessment” using the AOG tool. HP will provide access to the AOG tool for qualified customers and a selected reseller will provide the customer engagement and deployment Leads, deals and sales will all be tracked using the existing NA Eclipse program Tool – OMNI. Draft for discussion only
HP Confidential4 How do HP, it’s distributors and resellers make money – Drive high margin business to and through the channel Goals of pilot program include: −Developing a mechanism to measure HP’s ability to improve solution margin through the channel −Incent channel to sell high margin HP products and services −Incent channel to attach complementary high margin HP products and services −Simplify solution selling motion for the channel −Simple, straight forward value propositions for rich solutions. (“here is a simple way to address your Oracle data base challenges”) −Measuring and rewarding channel success −Improve channel loyalty by proving HP can improve their margin and bring them customers Program Goals Draft for discussion only
HP Confidential5 Financial Measurements and ROI As this is a pilot program, specific financial objectives and ROI are difficult to define. Most of the effort will be in developing the process and testing it for effective operation. # Customers engaged200 per month600 for the duration of the program # Leads for the program:50 per month150 for the duration of the program # Lead that end up in AOG25 per month75 for the duration of the program Assessment # AOG Assessments that end20 per month60 for the duration of the program up as proposals # Proposals customer buy10 per month30 for the duration of the program outright # Of addition proposals that 3 per month9 for the duration of the program customer buy with addition Eclipse inducements Product Revenues (Normalized $) will be: CurrentTarget Servers$50$50 Storage$10$20 Software$15$30 Services/Support$15$30 Misc$10$20 Note: Server $ is the same in both cases, hence overall revenue and margin pool for the deals increase. Draft for discussion only
HP Confidential6 Time Lines - Program Schedule The program has 3 distinct phases with different objectives and deliverables at each phase. Within a phase there will be simultaneous execution. The current phase must be completed before moving to the next. Consider: Crawl May-July 2005: −Obtain organizational alignment for the objectives, resources and execution model. −Build out and review with constituency the process, portfolio and collateral. −Tune the program model for optimum margin and execution. Walk Aug-October 2005: −Launch limited pilot with selected partners in NA only. −Assess progress of pilot −Adjust solution portfolio and the engagement model. −Tune the program model for optimum margin, execution −Build out “ramp plan” and evaluate for wide scale deployment Run January 2006: −Obtain organizational alignment for the “ramp out” −Increase the portfolio by including addition solutions e.g. CCI and TPM −Align with Overlord launch and extend the program to “ramp out” partners in “ramp out” countries. Draft for discussion only
HP Confidential7 Who is the Customer? Aligned with existing Regional ITC channel programs Customers that fall below C&I top 700 Customers above SMB. Customers that have consolidation needs that align with the current program solution offering. Customer that have a need to reduce IT cost by increasing utilization and agility Draft for discussion only
HP Confidential8 Infrastructure Operations New IT initiatives Infrastructure Infrastructure transformatio n Operations Management transformatio n New business initiatives Use IT Cons. savings to fund new initiatives Optimize IT to lower costs, drive operational excellence What is the Customer’s Challenge? Need to shifting IT investment from maintenance to innovation
HP Confidential9 Dedicated silos Inefficient Strategic IT consolidation Adaptive Tactical IT consolidation Economical Goals Fast response Ease of execution Scope Individual project Attributes Many diverse boxes and tools Isolated, redundant, applications Hard to manage, change Over-provisioned, low utilization Limited virtualization Goals Short term ROI, lower TCO Reduced risk Scope Existing infrastructure Limited application focus Attributes Rationalized boxes and tools Basic application rationalization (for example, messaging) Common management, DR Standardized Partially virtualized But… Prone to reconsolidation Goals Business and IT agility Transform IT to become an internal service provider Scope Focused on innovation Providing shared, common services to the enterprise Attributes Sustaining IT platform Standardized infrastructure, applications, business processes Adaptive management Fully virtualized Strategic IT Consolidation Optimizing IT to increase business value
HP Confidential10 Adaptive Enterprise Domains: Virtualization IT Consolidation Management Business Continuity and Availability Virtualization IT Consolidation Solutions Areas: Application and Database Consolidation Data Center Consolidation IT Management Consolidation IT Utility Consolidation Mainframe Alternative Servers and Storage Consolidation Workplace Consolidation The pilot will market four IT Consolidation Solutions: Two for blades and two for integrity Solutions Pilot Solutions: 1 - Being Determined 2 - Being Determined 3 - Being Determined 4 - Being Determined Draft for discussion only Note: The candidate solutions are listed later in the deck
HP Confidential11 Solution Stack or “Happy Meal” 3rd Party Application Focus SGBU Software Offering Migration and Transition Tools SWD Storage Offering Supporting Collateral Set Pres-sales Support Server Platform: Integrity or Blades TS Support Offering Solutions All solutions will have complete supporting collateral and defined “attach” elements included as part of the solution stack or “happy meal”. Typical Solution Collateral Set: - Reseller Training - Value Prop. for resellers and customer - Solution Brief / Brochure - Sizing Tool - Performance Bench Marks - Technical White Papers - Customer Success/Case Study - Seminar in a Box - Sample Bill of Materials Migration and Transition Services Deployment Services Draft for discussion only
HP Confidential12 Draft for discussion only Solution Description Margin Estimate Owners and Contributor Date Available StatusPlatformOSComment Windows on Integrity SAP Consolidation Solution John_S, Judy_B IntegrityWindows Windows on Integrity Sequel Server consolidation John_S, Judy_B IntegrityWindows HP-UX on Integrity SAP Consolidation Solution John_S, Judy_B IntegrityHP-UX Business Intelligence Oracle Database consolidation John_S, Judy_B IntegrityHP-UX OLTP Oracle database consolidation John_S, Judy_B IntegrityHP-UX Windows Server Infrastructure consolidation using VM-Ware and MS Virtual Server Jason_N, John_J 7/8/05Deliverables being developed BladesWindowsHP BladeSystem deliverables available for Windows Infrastructure to be delivered on date. Virtualization deliverables will follow in next phase. Exchange Consolidation Jason_N, John_J 9/30/05Deliverables being developed BladesWindowsSome deliverables available earlier. Quick reference guide available now. Virtual Client Solutions (Windows, Citrix) Jason_N, John_J 7/11/05Deliverables being developed BladesWindowsInitially Citrix focused deliverables will be available Linux server/Infrastructure consolidation Jason_N, John_J, Russell_C 7/15/05Deliverables being developed Prolient and Blades Linux Solution Portfolio Summary Listed here are the target solutions. Two will be selected for Integrity and two for Blades:
HP Confidential13 Draft for discussion only Solution DescriptionReseller Training Value Prop. for resellers and customer Solution Brief / Brochure Sizing ToolPerformanc e Bench Marks Technical White Papers Cust. Success/C ase Stdy Seminar in a Box Bill of Materials Windows on Integrity SAP Consolidation Solution Windows on Integrity Sequel Server consolidation HP-UX on Integrity SAP Consolidation Solution Business intelligence Oracle Database consolidation - OLTP Oracle database consolidation Windows Server Infrastructure consolidation using VM- Ware and MS Virtual Server 7/11/05 Available Exchange Consolidation 7/11/05 9/15/05Available Virtual Client Services (Windows, Citrix) 7/11/05 Available Linux server/Infrastructure consolidation 7/17/057/11/05Available - Solution Portfolio Collateral Summary Listed here is the collateral for the targeted solutions.
HP Confidential14 Draft for discussion only Solution DescriptionStorageSoftwareTSMigration and Transition Services Migration ToolsDeploymentServi ces Pre-sales Support Windows on Integrity SAP Consolidation Solution Windows on Integrity Sequel Server consolidation HP-UX on Integrity SAP Consolidation Solution Business intelligence Oracle Database consolidation - OLTP Oracle database consolidation Windows Server Infrastructure consolidation using VM-Ware and MS Virtual Server Exchange Consolidation Virtual Client Services (Windows, Citrix) Linux server/Infrastructure consolidation - Solution Attach Summary Listed here is the collateral for the targeted solutions.
HP Confidential15 Draft for discussion only Solution Components Template: Solution Description:E.G - Open Webserving (LAMPJ) on Blade systems Customer Problem:Need to consolidate for lower TCO, Replacement of high maintenance legacy systems Solution Details:H/WS/WServices and Support Target Solution Cost$20K$50K HardwareBL25p, BL35pOther items e.g. - StorageMemory add-on etc… SoftwareRedHat EL 4.0 or Novell/Suse SLES 9.0 Apache, MySQL, JBoss, PHP, PingID, Jabber XML Messaging ServicesInstallation and configuringMigration SupportH/W and S/W maintenance from HP Target CustomerPrimary:Secondary:Opportunistic: Enterprise and mid market type customers with more than 2000 employees Enterprise Datacenters, ISPs, ASPs Target Market SegmentFinancial ServicesHealthcareE-Commerce Target Reseller??? Supporting CollateralSolution Guide, Performance characterization Document, Customer Reference/Success story, Sizing Guide, The solution below is a basic template that will enable resellers to identify needs and customize for their specific customer scenario
HP Confidential16 Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Target Customer list will come from: - Existing HP customer lists - External customer list - Resellers customer list HP drives lead generation program via mailer or telemarketing Customer responses is profiled and evaluated for “target customers profile” and “deliverability” Qualified leads are allocated to appropriate reseller based on solution fit and geographic considerations Allocated reseller engages customer Lead Generation and Reseller Engagement Customer Reseller Omni Deal Tracking Draft for discussion only
HP Confidential17 Sale Closing Proposal Presentation Proposal Development Preliminary Design Current Environment Mapping Opportunity Identification Negotiation Present the Designed Solution + Services Request configurations and services quotes Preliminary design process Detailed Solution Design Translate functional requirements into design specification Deployment 1 to 2 days 3 to 4 days 3 to 4 weeks 1 week P R E L I M I N A R Y A S S E S S M E N T P R O C E S S Up to 50 servers inventory & performance data collection Review questionnaire and AOG Tool reports Preliminary Design AOG Tool installation/setup + Customer questionnaire Gather current environment information 1 to n days n days 1 to n days Customer confirms interest in preliminary assessment Customer Engagement Steps/Key Activities Consolidated Architecture Blueprint HP driven customer centric deal Closer Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Draft for discussion only
HP Confidential18 Sale Closing Proposal Presentation Proposal Development Preliminary Design Current Environment Mapping Opportunity Identification Negotiation Present the Designed Solution + Services Request configurations and services quotes Preliminary design process Detailed Solution Design Translate functional requirements into design specification Deployment Gather current environment information n days Customer confirms interest in preliminary assessment Reseller / HP Engagement Steps/Key Activities Consolidated Architecture Blueprint Engagement and Execution Model Engagement is in four phase: 1 – Lead generation, 2 – Assessment, 3 – Proposal and 4 - Deployment Reseller Request AOG licenses and update deal status Engage Customer Omni Deal Tracking Deploy AOG HP or Reseller Pre-sales service AOG database Proposal Environment data Update deal status Eclipse Funding Reseller Deal Sweetener Environment data and basic proposal Draft for discussion only
HP Confidential19 Draft for discussion only Reseller Profile and Skill Set Profile −The target Resellers will likely be enterprise partners and used to selling enterprise class solutions. −They will also likely be an “Authorized Business Solution Partner”. Experience −Will have sold one or more of the AE solutions in it’s, pre-AE incarnation, specifically IT Consolidation. Skills −The target reseller must be AE trained −The target reseller must be AOG trained −Solutions Have alliance or relationship that they support one of the big ISVs (i.e., Oracle, Sap, etc.) Have vertical industry knowledge/experience and/or Network skills −Products Integrity −The reseller will be a “value partner” −Will be a HP-UX reseller Blades −The reseller will be able to deploy blades solutions, including system insight manager, vmware and associated support care packs Storage −Authorized to sell HP enterprise storage Support Software Linux −Will be a linux elite partner????? −Have Linux Red Hat/SuSE certified SAs Misc Delivery Capability −Have some type of consulting practice, or relationship with an SI −Blades Below is a discussion of the reseller profile and skill set that has been determined based on specific input from various constituents and the needs of the proposed ITC solutions.
HP Confidential20 Competitive Landscape Dell, EMC, Sun and IBM are all active in the ITC space. Particularly IBM. IBM sells their “On demand” vision of how IT should work and uses ITC projects as a way of achieving an “On Demand” infrastructure. Draft for discussion only