Transcript HP PowerPoint Advanced Template

HP Completes
EDS Acquisition
Arca Presentation
© 2008 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
Forward-looking statements
This presentation 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, including the execution of integration
plans; 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 April 30, 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.
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20th August 2008
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HP Completes EDS Acquisition
•
$13.9B transaction is largest ever in IT services,
second-largest in technology sector
•
Services company with FY2007 annual collective
revenue of $38B
•
210,000+ services employees in 80 countries1
•
EDS becomes HP’s fourth major business group,
retains its Plano, Texas, base under
Ron Rittenmeyer’s leadership
1Aggregate
figure in combined services businesses at year-end fiscal 2007
For those countries that require consultation with works councils and other employee representatives in relation to the local implementation of the merger, this
document is not intended to provide country-specific information, and in no way reflects final decisions at a local level. Where required by law, final decisions will
be subject to prior consultation with works councils and other employee representatives
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20th August 2008
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Maximizing Value for Our Client
Shared Standard Services
Model and expertise for
mid-market customers
High outsourcing market
growth rates and
momentum
Innovation from HP Labs,
annual R&D investment
of $3.6B2
2As
4
Established, marketleading services …
breadth and depth
Industry reach across
major industries
Global Delivery
• EDS Best Shore®
locations
• Enterprise Service Mgmt.
Market leadership across
ITO segments
Improved Efficiency of IT Service Delivery
Technology platform
leadership
of Oct 31, 2007
20th August 2008
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Comprehensive
end-to-end IT
services
Portfolio
Deep industry
Expertise,
delivered
Globally
Based on
market-leading
technology and
Innovation
Increased business value from IT
Maximum Client
Value
HP & EDS Commitment to Clients
5
Continuity
Top priorities remain quality
and customer service
Coordination
Coordinated approach
to account management
Respect
Preserve and support clients’ investment
in third-party solutions
Leveraging the HP Portfolio
Improves the ability to
provide superior solutions
Seamless Integration
Minimal disruption in
serving our clients
Financial Flexibility
Access to HP’s financial services arm
Flexible and Collaborative
Engagement Models
Comprehensive end-to-end products and
services
20th August 2008
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Global Services Strength and Delivery
HP and EDS Global Services Operates in 80 Countries
EMEA
63,000
Americas
88,000
End-to-End Services
Delivered Globally
• 19 Strategic Locations
• Data centers across the globe
with 2.7M sq. ft. of floor space
• 38 service desk centers
in 80 countries and
Best Shore® locations
• 25 global application delivery
centers
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Asia
Pacific
59,000
A Combination of Respective Strengths
HP FY2007
• Fortune 14 - U.S.; Fortune 41 - Global
• 172,000 employees
• 145,000 sales partners; 73,000 service partners
• 88,000 retail locations
• $3.6B annual R&D
$104.3B Revenue
HP Fin Services
$2.3B
Enterprise
Storage &
Servers
$ 18.8B
Software & Other
$2.3B
Personal
Systems Group
$36.4B
EDS FY2007
• Fortune 111 - U.S.; Fortune 384 – Global
• 140,000 employees
• Manages 1M+ software apps & 2.6B lines of code
• Manages 300,000+ servers
• Supports 3 M+ desktops
$22.1B Revenue
Other
$1.1B
Business
Process
Outsourcing
$3.1B
Applications
Services
$6.4B
HP Services
$16.6B
Imaging &
Printing Group
$28.5B
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Infrastructure
Services
$11.5B
EDS, an HP company
The game has changed.
The opportunity is compelling.
IT Services
#1 in Technology
Hardware
#1 in Distributed
Management
Software
Estimated Addressable Market (2007): $500B - $550B
IBM
HP-EDS
EDS
#2 in IT Services
Globally
#2 in Infrastructure
Technology
Outsourcing
#2 in Application
Outsourcing
Fujitsu
Accenture
HP
CSC
HP: Largest Technology Company in the World
Source:
8
IDC; Gartner’s April 2008 IT Services Market Metrics Worldwide Market Share
20th August 2008
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Combined Strength Across Industries
Estimated 2007 Services Ranking Across Verticals
Government
Rank
Company
Financial Services
Rank
Company
Manufacturing
Rank
Company
Comms., Media & Ent.
Rank
Company
1
Lockheed Martin
1
IBM
1
IBM
1
Ericsson
2
Northrop
Grumman
2
HP + EDS
2
HP + EDS
2
HP + EDS
3
SAIC
3
Fidelity
3
Accenture
3
IBM
4
HP + EDS
4
Accenture
4
Fujitsu
4
Alcatel-Lucent
5
IBM
5
Fujitsu
5
CSC
5
T-Systems
Retail & Consumer
Rank
Company
Transportation
Rank
Company
Healthcare
Energy
Rank
Company
Rank
Company
1
IBM
1
IBM
1
HP + EDS
1
IBM
2
Accenture
2
HP + EDS
2
IBM
2
Accenture
3
ADP
3
Fujitsu
3
Perot Systems
3
Capgemini
4
First Data
4
INDRA
4
ACS
4
HP + EDS
5
HP + EDS
5
ADP
5
Fujitsu
5
AT&T
Source: EDS Quarterly Earnings Presentations; Pan-HP model; TSG Account Model; Gartner (Global Industries Worldwide Market Share, April 2008); SCD analysis
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Comprehensive Portfolio of IT Solutions
Comprehensive
solutions across
Infrastructure, Services
& Software to manage
IT holistically
Management
Software
Integrated solutions
incorporating industry’s
leading products
and services
Applications
Services
Enterprise
Servers &
Storage
Global
Delivery
Printers
and Print
Services
Best
Shore®
Client
Technology
Services
Standard
Processes
Outsourcing
Services
Process
Automation
Laptops, PCs,
and
Workstations
Financial
Services
Automation across
people process and
technology for efficient
IT service delivery
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20th August 2008
HP Labs
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Global delivery of
solutions to maximize
consistency & cost
efficiencies
HP & EDS: Stronger Together
• Enhances HP’s ability to deliver end-to-end IT solutions
• Expands global scale, scope of HP’s delivery capabilities and offerings
• Strengthens low-cost/high-quality offerings onshore, nearshore, offshore
• Leverages HP’s annual $3.6B in R&D spend/HP Labs innovation,
technology platform leadership and shared standard services model to
EDS clients
• Deepens industry expertise – in healthcare, transportation, financial
services, energy, consumer & retail, government, and manufacturing
• Fortifies Enterprise Service Management leadership
• Broadens applications services business with mission-critical legacy and
enterprise applications to Web-based and composite applications
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Why Combination Will Succeed
• Similar cultures based on customer focus, technical knowhow and innovation
• Service excellence and quality at the core of our operations
• Complementary offerings with limited overlap
• World-class technical talent, strong leadership and deep
industry expertise
• Deep experience in integrating companies
– HP completed largest-ever technology merger with Compaq
– HP completed 26 acquisitions in past three and a half years
– Broad experience at both companies transitioning thousands of
employees at a time, blending corporate cultures
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HP’s Executive Team
Mark Hurd
Ron Rittenmeyer
Cathie Lesjak
Chairman and CEO
EDS
Finance
Todd Bradley
Shane Robison
Jon Flaxman
Personal Systems
Group
Strategy and
Technology
Administration
Randy Mott
Marcela
Perez de Alonso
Information
Technology
Human Resources
Imaging
& Printing
Vyomesh
Joshi
Group
Imaging and
Printing Group
13
Ann Livermore
Michael Holston
Technology
Solutions Group
General Counsel
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Offerings and
Alignment
EDS Go-Forward Portfolio
Communications,
Media &
Entertainment
Consumer
Industries &
Retail
Energy
Financial
Services
Government &
Defense
Healthcare
Manufacturing
Transportation
Global Delivery
Enterprise Shared
Services
Customer Relationship
Management Services
Financial Process
Management Services
Administrative
Services
Application
Development Services
Enterprise
Application Services
Application
Management
Services
Applications Services
Transformation &
Modernization
Services
Infrastructure Technology Outsourcing
Data Center
Services
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20th August 2008
Workplace
Services
Security, Compliance
& Continuity Services
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Networking
Services
Enterprise Service Management
Business Process Outsourcing
Infrastructure Technology Outsourcing
(ITO) Leadership
HP Technology Innovation + EDS Services Leadership
Portfolio
Power of
End-to-End
Technology &
Services
• Synergy: Combination of 46 years outsourcing services expertise with 69 years of
technology leadership
• Client scope: Expanding 1,000+ outsourcing customer base in
9 industries to reach small, medium and large enterprises
• Flexibility: Traditional outsourcing blended with best-in-class technologies and HP
Financial Services
Global
Delivery
Scale
• Expertise: 200,000+ global services professionals with skills spanning process,
hardware and software
• Reach: 2,700,000 sq. ft. of floor space,
44 service desk centers, in 80+ countries
and Best Shore® locations
• Efficiency: Enterprise Service Management, providing global consistency with ITILbased processes and 8,780 ITIL professionals, major contributors to ITIL v3
Innovation
Hardware,
Software and
Services
• Market-leading technology: #1 in Technology Hardware, #1 in Distributed
Management Software
• Thought leadership: The power of $3.6B of HP R&D investment and the
innovations of 23 HP Labs in 7 global locations. Focus areas: intelligent
infrastructure, sustainability and dynamic cloud services
Source: IDC Analyst firm
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Business Process Outsourcing (BPO)
Leadership
HP Technology Innovation + EDS Services Leadership
• More than 30 years’ experience in Business Process Outsourcing and
•
Global Reach and
Deep Industry
Expertise
•
•
•
•
with more than 43,000 services professionals globally
Global service delivery footprint including 65 strategic shared services
centers globally
Delivers CRM services from 155 locations in 26 countries and 48 languages
Manufacturing, Healthcare, Government, Finance, Retail, Telecommunications and
Transportation solutions and expertise
Client portfolio with over 275 clients
5-10 year contracts and strong renewals track record
• Enterprisewide focus on service excellence and “Voice of the Client”
Service
Orientation and
Focus on Quality
User Experience
Investment in
Global Best
Practices and
Service
Infrastructure
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• Best practice and internationally recognized standards (ISO, COPC, ITIL)
• Lean Six Sigma for continuous improvement
• First international contact center in India to be certified against Information Security
Management System (ISMS) standards
• Global Service Delivery Model driving consistency of user experience
• World-class fully redundant services platform deployed virtually and managed centrally
• Fully secure, compliant platforms
• Global Network underpins services platform
Copyright © 2008 HP corporate presentation. All rights reserved.
Source: IDC Analyst firm
Applications Services Leadership
HP Technology Innovation + EDS Services Leadership
End-to-end
applications
expertise and
services
Depth and
breadth of
experience and
leadership
Enhanced global
sourcing
capability
Deeper partner
relationships
and enhanced
innovation
Full life cycle of applications services support diverse client requirements
• Services span development, modernization, integration, testing, management as well as
specialties in SOA, SAP, Oracle and software as a service
• Consulting and outsourcing engagement models support diverse client needs
• Vertical industry solutions and expertise address critical client business issues
Experience and leadership ensure quality, service at best value
TM
• Design for Run optimizes applications infrastructures and eliminates down time
• Global expertise and consistency incorporating CMMi, ITIL and ISO quality standards
• Industry leading software and hardware integrated into client solutions
Global sourcing capability offers scale, quality from cost-advantaged locations
• Second-largest applications services provider in the world
• Next-generation network manages global risk, links global locations to deliver the full portfolio
• Best practices in application testing and quality ensure client satisfaction
Partner relationships and innovation strengthen portfolio, deepen skills
• Key partnerships with SAP, Oracle, Microsoft promote innovation and expand portfolio
• EDS Agility Alliance harnesses innovation and supports multivendor environments
• Access to HP’s $3.6B of R&D investment from 23 HP Labs in 7 global locations
Source: IDC Analyst firm
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