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HP Services: An overview Kannan Govindarajan,



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  • HP today overview Copyright ©2006 HP corporate presentation. All rights reserved.
  • HP today overview Copyright ©2006 HP corporate presentation. All rights reserved.
  • HP today overview Copyright ©2006 HP corporate presentation. All rights reserved.
  • HP today overview Copyright ©2006 HP corporate presentation. All rights reserved.
  • Helping customers manage and transform their IT environments TSG business overview
  • HPS Portfolio Optimization Initiative September 2006 HP Restricted
  • HPS Portfolio Optimization Initiative September 2006 HP Restricted
  • HPS Portfolio Optimization Initiative September 2006 HP Restricted


  • 1. HP Services: An overview Kannan Govindarajan, Business Optimization Solutions HP Software
  • 2. Agenda
    • HP/HPS Overview
    • The Business Challenge in IT Services
    • Challenges in Delivering Services
    • Conclusion
    May 25, 2010
  • 3. HP today
    • Simplifying technology experiences around the world
    • Fortune 14 company – U.S. Fortune 41 company – Global
    • 172,000 employees
    • 145,000 sales partners
    • 73,000 service partners
    • 88,000 retail locations
  • 4. Leadership across the board 05/25/10 Worldwide data for calendar CQ4 2007 Sources: IDC February 2008 World Wide Tracker Data & IDC Worldwide Quarterly Disk Storage Systems Tracker, March 2008 IDC FY06 Annual Services and Software Data SHARE POSITION Blade Servers 1 47.7% #1 x86 based Servers 1 35.0% #1 Unix + Linux + Windows Servers 1 31.8% #1 Branded Tape Drives 1,5 27.7% #2 Disk Storage Systems 1 18.1% #2 SAN Systems 1,6 14.7% #3 Automated Software Quality 45.9% #1 Network change and configuration management 6 27.1% #1 Distributed system management software 17.1% #1 IT project and portfolio management 10.8% #2 Support/training services 6.7% #2 Inkjet printers 4 45.8% #1 Laser printers 4 41.6% #1 Workstations 3 37.0% #2 Notebooks 2 21.7% #1 Desktops 16.3% #1
  • 5. Financial strength
    • Q1 FY08 net revenue up $3.4 billion Y/Y or 13%
    • HP exited Q1 FY08 with $10.1 billion in gross cash
    • First quarter non-GAAP operating profit up 31% to $2.8 billion
    • Generated $3.2 billion in cash flow from operation Q1 FY08
    05/25/10 Revenue by segment Revenue by region Q1 FY08 revenue: $28.5B Imaging & Printing Group 26% Personal Systems Group 38% HP Services 15% Enterprise Storage & Servers 17% HP Financial Services 2% Software & Other 2% EMEA 43%, up 15% Y/Y U.S. 33% Asia Pacific 17%, up 22% Y/Y Americas 40%, up 8% Y/Y HP Services $16.6B Imaging & Printing Group $28.5B Enterprise Storage & Servers $18.8B Software & Other $2.3B HP Financial Services $2.3B Personal Systems Group $36.4B FY07 $104.3B Canada/Latin America 9% U.S. 31%
  • 6. Driving three key industry trends 05/25/10 SMB Enterprise Consumer Connecting users to services they value Digital content production & consumption Automated 24x7 lights-out computing Connecting devices to the network Analog print High-cost IT islands Next generation data center Digital imaging and printing Always connected mobile experiences MARKET EVOLUTION Customer challenges: Customer experiences: Creating experiences customers value
  • 7. HP Services operating model May 25, 2010 Building for speed, simplicity and execution Portfolio Management Consulting & Integration Technology Services Outsourcing Services Customer Engagement Sales Customer Management Single face to the customer Global Delivery IT Operations Foundation Services Application Services Business Process Outsourcing Cost competitive, standardized, consistent delivery
    • Drive standardization
    • “ Compete as an Enterprise”
    • Lead the “technology transformation” game
    Strategy Imaging & Printing Services Value propositions that cause CxOs to act
  • 8. HP Services …a broad set of capabilities May 25, 2010 Fulfillment Management Enablement “ Supply me with industry leading products and provide global support contracts” “ Help me design and implement an IT environment” “ Manage these specific IT services for me.” “ Take full ownership of people, assets, and delivery of IT services for my enterprise.” Ranges from To strategic Technology Support Consulting & Integration Outsourcing Services
  • 9. Consulting & Integration @-a-glance May 25, 2010 Portfolio Fast Facts
    • 15,000 professionals
    • Operations in 38 countries
    • Market leadership in Telco industry, Infrastructure Services, IT Service Mgmt., and Microsoft solutions
    CME Manufacturing Public Sector Financial Industry Practices C&I Delivers: Application Modernization Infrastructure Optimization Information Management Infrastructure Services Security & Risk Mgmt. Microsoft Services Applications Development & Integration Packaged Applications Information Management Architecture & Transformational Governance IT Service Management Technology Practices
  • 10. Outsourcing Services @-a-glance May 25, 2010
    • 700+ strategic outsourcing accounts, we cover more than 3,000 customers
    • Presence in 170 countries
    • 78,000+ servers and 1.2 M desktops managed
    • Ranked #2 outsourcer ( Information Week, June 2006 )
    IT Infra- structure Applications Business Processes
    • F&A Business Process Outsourcing
    • Application Management
    • Application Operations
    • Server Management
    • Storage Management
    • Network Management
    • Desktop Management
    • Messaging & Collaboration
    • Mobile Device Management
    • Print Management
    • Mainframe Management
    • Business Continuity
    • Software License Management
    • Deployment Management
    • Service Desk
    • Multi-vendor Support Management
    Fast Facts Portfolio
  • 11. Technology Services @-a-glance
    • Expertise in helping customers deploy and manage their IT infrastructure with focus on:
      • Availability, business continuity & performance
      • Lower cost of IT Infrastructure management
      • Leverage of ITIL/ITSM methodology
    Desktop & Mobile Servers & Storage Networks Imaging & Printing Software Availability Services Performance Services Deployment Services Support Services Fast Facts Portfolio
  • 12. IPGS @-a-glance
    • Strong Double Digit Growth
    • Key Market Propositions:
      • Optimal deployment & management of fleets
      • Improved productivity and workflow
    Pay Per Use for Imaging and Printing Managed Imaging and Printing Services Document management and workflow solutions Support Services Improvement Re-engineering Transformation Fast Facts Portfolio
  • 13. May 25, 2010 IT Services Business Challenges
  • 14. The CIO’s balancing act Q1FY07
    • Mitigate risk:
    • Ensure security and continuity of internal business operations, while minimizing exposure to external risk factor
    • Maximize return:
    • Improve business results; grow revenue and earnings, cash flow, reduced cost-of-operation
    • Improve performance:
    • Improve business operations performance end-to-end across the enterprise
    • Increase customer and employee satisfaction
    • Increase agility:
    • Enable the business organization and operations to adapt to changing business needs
  • 15. IT and Board of Directors HP Confidential - Do Not Distribute
  • 16. May 25, 2010
  • 17. May 25, 2010
  • 18. May 25, 2010
  • 19. Relationship of Portfolio to Marketing, Selling, and Delivery May 25, 2010 Marketplace, Competitors, Customer TCE Customer Needs Past Experience Expected Service (what customers think they need/want) Perceived Service (what customers think they are actually getting) Service Delivery (what we actually do) Service Portfolio (what we can do for customers today) Mgmt aspirations for and perception of business (what we need to do in the mrkt) Service Provider Service Sales/Solution Design (what we tell customers we will do) Service Marketing (what we tell customers we can do and how it addresses their needs) Customer Word of Mouth Customer TCE Mgmt perceptions
  • 20. Key Business Challenge
    • Traditional IT Service Company Economics
    • IBM
      • Revenue/Employee:~250K
      • Op. Profit Margin:~10.5%
    • EDS
      • Revenue/Employee:~180K
      • Op. Profit Margin:~5%
    • HP
      • Revenue/Employee:~230K
      • Operating Profit Margin:11%
    • Indian IT Service Company Economics
    • TCS
      • Revenue/Employee:~57K
      • Op. Profit Margin:~22%
    • Infosys
      • Revenue/Employee:~49.5K
      • Op. Profit Margin:~29%
    • Wipro
      • Revenue/Employee:~48K
      • Operating Profit Margin:20%
    May 25, 2010
  • 21. May 25, 2010
  • 22. Transition slide HP Global Delivery and Governance Process
  • 23. ITIL Process for Global Delivery May 25, 2010 Plan, Design & Build IT Business Assessment IT Strategy and Architecture Planning Manage Third Party Services Service Planning Service Build and Test Release Management Continuity Management Customer Management (TCE) Financial Management Add-On Business Fundamentals 6 Processes 25 Procedures 1 Processes 4 Procedures 2 Processes 9 Procedures C&I OS & TS HPS Change Management Configuration Management Service level Management Capacity Management Availability Management Operations Management Incident Management Service Request Management Problem Management Service Desk Security Management Operate Maintain & Support 6 Processes 33 Procedures 5 Processes 29 Procedures OS OS & TS Global Delivery
  • 24. Portfolio Structure September 2006 Page Taxonomy Terms Definitions Examples HP Solution Families
    • HP and partner products, services, bundles, and solutions that address a Customer Solution Area.
    IT Consolidation Solutions
    • A combination of HP and/or partner hardware, software and services.
    Data Center Consolidation Bundles
    • Pre-defined linkage of a hardware, software and/or services sale to an adjacent product or service
    HP Superdome Services
    • The most granular level of a service that is proactively sold on a stand-alone basis.
    Hardware Support Service Processes Procedures Solution Family and Solutions Enabling Tools Job Profiles Enablers Operations Instructions
    • ITIL and industry standard-based
    • Consistent across all services
    Service Levels Elements Under Management (e.g. Servers, Storage Devices, Desktops, Routers, SW licenses) Bundles What are we Selling? How are we Delivering It?
  • 25. The HPS portfolio management system September 2006 Map to HP Solution Families Identify Customer Business Needs Identify Customer Solution Areas Design HP solution Service configuration Delivery Design HP Solution Define scope of customer engagement P r o c e s s Build service bill of materials Capacity planning & resource delivery Identify Services, Products* & Innovation within solution Configure processes and products for each service Communicate HPS solution to customer and delivery * Bundles as appropriate Understand customer agenda
  • 26. Tools for service configuration September 2006 Page Tools Process ITSM/ITIL Processes Kim, create a document that Configure processes and products for each service Define scope of customer engagement Identify Services, Products* & Innovation within solution Service configuration 20 Communicate HPS solution to customer and delivery Proposal/Delivery Mapping Service Configuration * Bundles as appropriate
  • 27. Global Delivery of Services Process & Operational Excellence May 25, 2010 Openview Servicedesk Engineering Tools
    • HP Global Method for Service excellence
    • Globally consistent, mature CMMI and ITSM processes:
    • CMMI (Level 5); ITSM (BS 15000)
    Skill Database, Time tracking, Resource Management, Project Management
    • Standardized on end-to-end consistent tools
    • Deployment through integrated process tools
    HP Global Delivery Services
  • 28. Right services from the right place May 25, 2010 65,000 HP services professionals
    • 78,000+ multi-vendor servers
    • 1 million desktops
    • 1 million sq ft of data center space
    • 1300 SAP instances, 219,000 users
    • SEI CMM Level 5 certification
    • BS 15000 certification
    Contact Center services (China, India, Ireland, Mexico, Spain, USA, Canada)
    • Enterprise help desk activities
    • Voice, e-mail and chat-based support
    Infrastructure services (Australia, Canada, Costa Rica, India, Mexico, Singapore, Slovakia, Spain, USA )
    • Network device management, end user workplace management
    Application services (Australia, Brazil, Canada, China, Costa Rica, India, Mexico, Philippines, Poland, Slovakia)
    • Application management, implementation and support
    BPO services (China, Costa Rica, India, Mexico, Poland, Singapore, Spain, USA )
    • Finance & administration: billing, order management, employee transaction management
  • 29. Conclusion
    • IT Services are complex
    • Managing them requires complex skills
      • People
      • Process
      • Technology
    • Is an ‘artisan trade’, where heroics rather than mechanics wins the day
      • Automobile industry before Henry Ford’s assembly line
    May 25, 2010