Today, HP is the largest technology company in the world, with a global reach and an array of solutions that go well beyond the printers and PCs that we’re famous for. At HP, we intend to develop the solutions in cloud and connectivity that will define the future of the industry. Our core strengths—broad portfolio, market-leading positions in the enterprise, and consumer, innovation, scale, and global reach—align to the opportunity ahead and put us in a unique position to deliver against our vision. At HP, we provide seamless, secure, context-aware experiences for a connected world. We’re the 10th-largest [10th largest what?] in America (by revenue) and the 26th-largestin the world according to Fortune magazine. We do business in approximately 170 countries, and a billion people around the world use HP technology every day. Last year, HP shipped about 52.6 million printers, 64.3 million PCs, and 2.8 million servers—or about 3.5 products every second. More than 200 million cell phone subscribers worldwide depend on HP software to place calls. And more than 18 million people rely on mobile and LAN-based carrier communications running on HP technology.In addition, we have 145,000 sales partners, 210,000 service partners, and 88,000 retail locations. Which is to say that we are a truly global corporation, creating technology that positively impacts individuals and businesses all around the world. Doctors in Norway are providing up-to-the-second, life-saving care to their patients with HP systems that are always on and always connected. In Canada, a nonprofit organization is using HP cloud computing technology to decrease the amount of time it takes to trace and remove potentially harmful food products from the supply chain once a recall is issued. And in Brazil, we’re working long-term with a company to design an infrastructure that not only meets their sustainability goals, it will create new jobs in the region. It’s because of our unique combination of size, scale, and global presence that we can pioneer new markets, make technology accessible and affordable for customers, use our natural resources effectively, and invest in the research required to enable the next round of technological breakthroughs.Footnotes: 1 Market share based on shipment revenues (all other market shares are based on unit shipments), and specifically for software revenue = license + maintenance + subscription revenues2 Classified as “portables” by IDC3 Includes PWS Desktops and PWS Mobile4 Based on combining IDC categories of IT Services including “project-based,” “outsourcing,” and “training/support”5 Includes FC SAN and iSCSI SAN, Fibre Channel (FC), Fibre Channel over Ethernet (FCoE), InfiniBand, iSCSI, NAS, Switched SAS (SAS SAN)6 Market share based on annual revenue, CY20097 Market share based on annual revenue, CY2009 8 Includes single function and multifunction printers9 Includes single function and multifunction printers 10Includes L2 and L3 Ethernet Switches for both HP and 3COM sourced from Dell’Oro Group 1Q10 Switch Ethernet, May 201011OS view including revenues for UNIX, Linux, and Windows across hardware architectures including X86, PA-RISC, Integrity, etc.Specific Sources of DataBlade Servers - IDC Worldwide Quarterly Server Tracker, 2010, 3Qx86 Servers - IDC Worldwide Quarterly Server Tracker, 20103, 3QUnix + Linux + Windows Servers - IDC Worldwide Quarterly Server Tracker, 2010, 3QBranded Tape Drives – IDC Worldwide Branded Tape , 3Q10, Vendor Analysis, based on unitsExternal Disk Storage Systems - IDC Worldwide Quarterly Disk Storage Tracker, 3Q10, based on unitsStorage Area Networks Systems - IDC Worldwide Quarterly Disk Storage Tracker, 3Q10, based on unitsAutomated Software Quality –IDC Worldwide Automated Software Quality 2009–2013 Forecast Update and 2008 Vendor Shares: Evolving Quality in a Challenging Market, #223893, June 2010Distributed System Management Software – IDC, Worldwide Distributed System Management Software 2009 Vendor Shares, #224062, July 2010IT Asset Management Software – IDC, Worldwide IT Asset Management Software 2009 Vendor Shares, #224438, August 2010IT Services – IDC Worldwide Quarterly Services Vendor Tracker, 2009 only Annual share position available, Refreshed in Q2 2010 Outsourcing – IDC Worldwide Quarterly Services Vendor Tracker, 2009 only Annual share position available, Refreshed in Q2 2010 Support and Training - IDC Worldwide Quarterly Services Vendor Tracker, 2009 only Annual share position available, Refreshed in Q2 2010 Inkjet Printers - IDC Worldwide Quarterly Hardcopy Peripherals Tracker, 20103QLaser Printers - IDC Worldwide Quarterly Hardcopy Peripherals Tracker, 20103QEthernet Switches – 3Q2010 Switch EthernetWorkstations - IDC Worldwide Workstation Tracker 3Q10Notebooks - IDC Worldwide Quarterly PC Tracker, 3Q10Desktops - IDC Worldwide Quarterly PC Tracker, 3Q10Thin Clients – Worldwide Enterprise Thin-Client QView 3Q2010
Business context: the need for speedThe pace of business in our world is accelerating to staggering levels. The increase in information, and the rate of transactions and interactions is exponential. Simultaneously, consumers have more demanding expectations regarding speed and depth of interactivity and mobility. All of these drivers are causing business leaders to reevaluate their business models and look to technology give them a strategic advantage. Common approaches are using social media to integrate consumers into strategic planning and providing new outlets for products and services via mobile applications.
All of this is driving a major shift in IT. In most organizations, IT is seen as an inhibitor to the rate of change and not as a catalyst. The biggest challenge CIOs face is the need to react much faster to business demands in order to use IT as a competitive differentiator. However, extensive HP research shows the typical IT department spends 70 percent of its budget on maintaining its existing infrastructure and only 30 percent on innovation to generate a competitive advantage for the business. As a result, CIOs are looking for new approaches that enable them to apply more resources toward proactively addressing their business needs. Through the use of cloud services, converged infrastructure, and strategic outsourcing, they can significantly reduce the time required to provision new services—from months to hours—while lowering the capital, deployment, and management costs to reallocate resources toward what truly differentiates.
IT challenge: the need for expertise The number-one inhibitor cited by business and IT leaders is sourcing the right expertise when and how companies need to acquire it. According to The InfoPro, when asked to name the number-one obstacle to adopting cloud services, ~60% of executives cited “Lack of staff skills/shortage of expertise.” They are reporting a competency gap; employees with relevant skills are difficult to come by. When you consider the rate of change in both business and technology that IT professionals must contend with in order to stay relevant, it’s no wonder this is the case. According to these leaders, two factors comprise this issue: Sourcing Businesses typically go about acquiring IT expertise in three ways: 1) they hire it, 2) they outsource it, or 3) they acquire it through service providers or cloud services. The IT organization of the future will be much smaller and more nimble, focusing internal resources on deeper and broader business expertise while leveraging service providers who bring deep technology expertise. This represents a whole different mindset for people entering the workforce. Many new IT professionals will become consultants on contract rather than employees. Different expertise (next page)
Let’s take a closer look at the IT expertise gap.Most IT organizations include staff who hold multiple product certifications. In general, IT vendor certifications provide good product-specific experience but they in no way develop the expertise to optimize a business’s customer service portal in the cloud. In addition, as the certification industry has focused on increasing volumes, many programs have become more “knowledge based” and compromised the hands-on experiential elements. New technology expertise paradigm: injecting business value into IT skill developmentAt an industry level, we need to provide new ways to develop and source this expertise. With the accelerating pace of change in both business and technology, we need a framework to provide concise, relevant, end-to-end experiences that help IT professionals stay current on the volume of change in a simple and consumable way. This applies both to the existing IT professionals as well as developing new ones with the expertise to create business value. Different expertise: (from previous page) There are two key expertise attributes that Business and IT leaders require. Multivendor, end-to-end, cross-platform, solution experience, and a demonstrated understanding of the business and how to leverage technology to achieve business outcomes. Those certifications that remain in demand are providing experience with cutting-edge technologies that create meaningful business differentiation.
Demographics of expertiseAs you move up the pyramid, you have fewer people with significant industry experience. As you move down the pyramid, you have a magnitude of people with more basic skills. Until now, the ExpertOne program has been designed for current IT professionals. Working with education allows HP to broaden the talent pool of experts and meet HP customer and partner needs for hiring, outsourcing, and acquiring expertise through service providers.
HP Institute: coming soon to aclassroom near youUnder the banner of the HP Institute, HP will provide four learning solution packages tuned for the academic environment at the high school, technical school, or university level. Opportunities include both a technology track and a business track in development. Technology track:This two-year degree program aims to provide the practical experience that will enable a graduate to set up a complete, end-to-end IT solution for a small or medium business (SMB) sized company. This includes both working with the technology and the ability to apply that technology to achieve defined strategic business objectives. Graduating with the skills to be immediately relevant in a business context will increase the career and economic opportunities for these students.
HP is partnering with Certiport to develop a complete set of academic solution components including HP Official Courseware textbooks, e-Learning, Remote Lab Facilities, Practice Tests, and Certification Exams. All of these are designed for use by educators within the classroom environment.
A-Series labs in training remote lab environment
To reach this segment, HP is adding an Associate level to ExpertOne program with a similar aspirational vision. Many academic certification programs are simplified versions of an IT vendor’s professional program. HP’s objective is to inject business relevance and practical experience into education, helping to ensure that graduates entering the workforce will be ready for the emerging IT environment. In addition, HP provides pathways for IT professionals to continue their career development through HP professional level certification and education.