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TMCNet:  HP Launches New Data Center Sourcing Approach to Save Customers Millions in Upfront Capital; HP Facility-as-a-Service disrupts traditional data center sourcing model

[May 05, 2014]

HP Launches New Data Center Sourcing Approach to Save Customers Millions in Upfront Capital; HP Facility-as-a-Service disrupts traditional data center sourcing model

(M2 PressWIRE Via Acquire Media NewsEdge) PALO ALTO, Calif. -- HP today announced HP Facility-as-a-Service (FaaS), (1) a data center sourcing alternative that allows customers to redirect the initial expense of construction into other areas of the organization or into operating expenses for the data center, while continuing to manage their own IT.

Cloud strategies, big data and other major influences on IT are driving the need to create data centers capable of matching today's IT requirements. Organizations are choosing between modernizing and building new data centers or utilizing cloud or colocation facilities, or combinations of each. The capital cost of building their own data center often drives the strategy toward off-premises choices. Colocation models avoid the initial capital outlay by operating under a monthly payment model, but they limit flexibility and control.

According to Forrester, the upfront costs of the architectural designs and plans and the build-out of capacity are often in the millions of dollars. They estimate the cost of building and managing a traditional data center is just over $59 million. In addition to these upfront costs, there are ongoing operational costs of power, staffing and maintenance. (2) HP FaaS is a cost-effective alternative to building an owner-operated data center and colocation. Using HP's modular approach to the data center, the design fits a customer's specific requirement for capacity, criticality and provisioning, delivering the right size at the right time. HP provisions the data center to the customer that pays a monthly fee as part of a maintenance service agreement. The customer would operate the data center, retaining all the advantages of an owner-operated model of control and security while having the ability to scale the data center as needed. The data center is maintained by HP under the agreement and IT resources can focus on innovation that drives business.

As enterprise data center operators search for ways to expand capacity, many are looking to modular/prefabricated/containerized solutions and colocation as key ways to expand. The primary driver for this is the pressure on enterprise data center operators to avoid incurring the high capital expenditures involved in new data center builds. (3) HP Facility-as-a-Service enables customers to save millions in upfront capital by: Including the cost of building a data center into a typical five-year rolling service agreement.

Addressing specific requirements for capacity and provisioning through HP's extensive modular data center offering, including HP Flexible DC , HP Performance Optimized Datacenter (POD) and custom modular choices that address critical challenges related to space, power, cost and time to market.

Establishing an ongoing relationship with HP via a renewable long-term service agreement including a monthly payment as part of a scheduled maintenance plan.

"Previously, organizations determining their data center sourcing strategy had a number of options, but each had its difficulties," said Rick Einhorn, vice president, Technology Services Data Center Consulting, HP. "Now with HP Facility-as-a-Service, a new option is available that enables an organization's CFO to switch costs from a capital to an operating expense, and provides the CIO with their own operated data center which has the flexibility to expand as the business grows." HP is uniquely positioned to deliver this service, with seasoned critical facilities consultants and engineers that have designed over 65 million square feet of data center space and more than two-thirds of all LEED Gold and Platinum certified data centers.

Availability HP Facility-as-a-Service is globally available now.

(1) Services that are considered professional engineering services are offered and will only be provided by professional, licensed engineers. In the United States, these services are offered by EYP Mission Critical Facilities, Inc., ("EYP MCF") which is a wholly owned subsidiary of HP.

(2) "Build or co-locate? The ROI of your next data center," Forrester Research, Inc., August 20, 2013.

(3) "Improve Efficiency, Cut Costs: Top-Line Results from IDC's U.S. Enterprise Datacenter Survey," April 2014, Doc No. 247735.

This news advisory 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, market share or competitive performance relating to products and services; any statements regarding 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 need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy and plans for future operations; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2013, and that are otherwise described or updated from time to time in HP's Securities and Exchange Commission reports. HP assumes no obligation and does not intend to update these forward-looking statements.

2014 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.

Media contacts Michelle McGlocklin , HP Enterprise Group mcglocklin@hp.com About HP HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers' most complex challenges in every region of the world. More information about HP (NYSE: HPQ) is available at http://www.hp.com .

(c) 2014 M2 COMMUNICATIONS

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