More Than 250 Customers Worldwide Switch from Mainframes to HP Integrity Systems and Save up to 70 Percent

PALO ALTO, Calif. (Business Wire EON/PRWEB ) November 10, 2008 -- HP (NYSE:HPQ) today announced that more than 250 customers worldwide have migrated to HP Integrity systems from mainframes over the past two years, saving up to 70 percent in operational costs.⁽¹⁾

With HP Integrity, we now have more capacity, scalability, agility, and most importantly stability, at a fraction of the cost, which has helped us to rebuild BART's business.

Before migrating to HP, our sales support system infrastructure was divided into mainframe and the Windows servers, which meant that the application management team and the monitoring tools had to be readied separately in two environments. By replacing that system with HP Integrity Superdome, we've been able to integrate the application system, resulting in cost reductions of around 50 percent

In addition, there has been an increase in the stability of the system and a lightening of workloads. Once we fully integrate our servers, I am sure these positive effects will manifest themselves on an even bigger scale.

Customers tell me they feel stuck paying a premium for their mainframe. HP has proven to hundreds of customers that we can unlock savings and provide a path to the future

By moving to HP Integrity systems, companies can realize efficiencies in time, energy and operating costs to achieve their business objectives.

Mainframe Migration Case Studies: A Total Cost of Ownership Comparison Lowering Cost and Improving Flexibility by Migrating to Open Systems

Breaking the Power Deadlock: The Power and Cooling Benefits of Running on Open Systems.

Mainframe Migration Case Studies: A Total Cost of Ownership Comparison

Breaking the Power Deadlock: The Power and Cooling Benefits of Running on Open Systems

• According to Robert Frances Group, a leading provider of consulting and research, the capital savings range from $1.5 million up to $23 million, with up to an additional operational cost savings of more than $4 million over four years.
• HP Integrity servers consumed 41 percent less energy and used 48 percent less space than the IBM z9 mainframes they replaced.⁽²⁾
• HP has more than 25 years of in-depth knowledge and expertise helping mainframe users move core applications that are critical to their business to the right HP environment.

HP programs and services for mainframe migrations

• HP Application Modernization Services – a comprehensive suite of services within the EDS portfolio that includes portfolio rationalization, application assessment, modernization implementation, custom application development, testing and management, and service-oriented architecture.
• HP NonStop FREEdom incentive program – provides qualified businesses an HP Integrity NonStop NB50000c BladeSystem at no charge, along with a full year of HP NonStop platform software.
• HP Total Cost of Ownership (TCO) Challenge – a web-based tool to calculate cost savings when migrating from mainframe environments to HP Integrity systems.
• HP Financial Services offers a variety of leasing and financial services that can facilitate customers’ migration to an HP Integrity system, independent of budget cycles. This may include purchasing customers’ existing equipment and either leasing it back as part of the transition plan, or remarketing it.

Real customers, real results

San Francisco Bay Area’s Bay Area Rapid Transit District (BART) launched a business transformation initiative and migrated from a mainframe-based environment to HP Integrity servers running the HP-UX 11i operating system and Oracle® PeopleSoft Enterprise applications. The migration resulted in a 50 percent decrease in paycheck errors and saved the company $1.5 million annually in mainframe license, lease, applications and maintenance costs.

Astellas Pharma Incorporated, a global pharmaceutical company, strengthened its IT infrastructure and reduced its total cost of ownership (TCO) with the construction of a new sales support system centered on the HP Integrity Superdome. As a result, the company realized a 50 percent reduction in system operating costs while also improving business efficiencies.

The Brazilian Navy migrated to an HP Integrity platform running Oracle to establish a more agile data center architecture that can better keep pace with evolving business needs. As a result, they reduced their annual mainframe operating costs by approximately 80 percent.

WGV (Württembergische Gemeinde-Versicherungsverein AG), a regional all-line insurer based in Stuttgart, Germany, built its new business operations on an HP Integrity platform. With HP, WGV achieved the lowest technology cost base in the German insurance industry, realizing a 311 percent return on investment.

Quotes

“We needed to modernize our data center in order to better support the increased demand for public transportation. By migrating from our mainframe solution to HP Integrity servers, we will be lowering our support costs by $1.5 million per year. This modernized data center supports the District’s larger initiative of advancing our back office processes where we expect a total savings of at least $20 million over the next five years,” said Robin Cody, department manager of Information Technology, BART. “With HP Integrity, we now have more capacity, scalability, agility, and most importantly stability, at a fraction of the cost, which has helped us to rebuild BART’s business.”

“Before migrating to HP, our sales support system infrastructure was divided into mainframe and the Windows servers, which meant that the application management team and the monitoring tools had to be readied separately in two environments. By replacing that system with HP Integrity Superdome, we’ve been able to integrate the application system, resulting in cost reductions of around 50 percent,” said Junichi Inoue, corporate IT department manager, Astellas Pharma Inc. “In addition, there has been an increase in the stability of the system and a lightening of workloads. Once we fully integrate our servers, I am sure these positive effects will manifest themselves on an even bigger scale.”

“Customers tell me they feel stuck paying a premium for their mainframe. HP has proven to hundreds of customers that we can unlock savings and provide a path to the future,” said Martin Fink, senior vice president and general manager, Business Critical Systems, HP. “By moving to HP Integrity systems, companies can realize efficiencies in time, energy and operating costs to achieve their business objectives.”

Additional web resources

• Read what Martin Fink, vice president of Business Critical Systems at HP, says on his blog: Musings on Mission Critical Computing

• View John Pickett, worldwide manager of the Mainframe Alternative Program at HP, as he discusses the key business problems that mainframe users face at: Mainframe Alternative Videos
• Alinean Inc. study: “Mainframe Migration Case Studies: A Total Cost of Ownership Comparison Lowering Cost and Improving Flexibility by Migrating to Open Systems”
• Robert Frances Group: “Breaking the Power Deadlock: The Power and Cooling Benefits of Running on Open Systems.”
• Information on the HP NonStop FREEdom incentive program is available at: Presenting HP’s NonStop FREEdom Program
• Information about the HP Application Modernization Services is available at: Modernizing Your Applications and Infrastructure with EDS
• Information on the HP TCO Challenge is available at: www.hp.com/go/tcochallenge

Keywords

Hewlett-Packard, HP, HP servers, Integrity servers, IT, mainframe, mainframe computers, mainframe alternative, mainframe migration, mainframe replacement, mission critical computing, x86 mainframe, mission critical, NonStop servers, blades, service-oriented architecture, data center, application modernization, Business Critical Systems, data center, enterprise

About HP

HP, the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP is available at http://www.hp.com/.

Note to editors: More news from HP, including links to RSS feeds, is available at http://www.hp.com/hpinfo/newsroom/.

⁽¹⁾ Alinean Inc., “Mainframe Migration Case Studies: A Total Cost of Ownership Comparison,” March 2008, http://www.alinean.com/PDFs/Intel-Mainframe_Migration-TCOStudy.pdf

⁽²⁾ Robert Frances Group, “Breaking the Power Deadlock: The Power and Cooling Benefits of Running on Open Systems,” July 2008.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation. Oracle is a registered trademark of Oracle Corporation and/or its affiliates.

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 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 July 31, 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.

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

MULTIMEDIA GALLERY

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