hp confidential

hp-ux 11iipf

pricing

hp-ux 11i pricing proposal

For Discussion Only

Mike Wardley

hp-ux 11i Marketing

hp confidential

hp-ux 11iipf

pricinghp-ux 11i pricing – strategic considerations

• Price licensing based on number of processors (PPL)

– Easiest/cleanest way to transition to pricing models under consideration for Q3 ’03 timeframe

• Establish consistent pricing for commercial and technical server (TCOE) markets

• Price the OS competitive to Sun and IBM as measured by aggregate pricing (Server + OS)

• Price the OS specific to enterprise customers

– Including enterprise research and engineering customers

• Price the OS relative to Microsoft (.Net Enterprise Server and .Net Data Center editions only)

– Competitive under 8 CPUs

– Command premium beyond 8 CPUs

• Provide flexibility for customers to purchase OS licenses independent of Systems

– Eg. Customers may be able to purchase “x” number of systems and “y” number of licenses and

have the flexibility to deploy on the systems

hp confidential

hp-ux 11iipf

pricing hp-ux 11i products for ipf

Common Components• Base HP-UX kernel and

commands• EMS Framework• Judy libraries• Software Distributor• Casey Kernel Configurator• UpdateUX• Tachlite Fibre Channel driver• Gigabit Ethernet• Online Diagnostics• Perl• Apache Webserver• Java JRE v1.3• Base VxVM• Ignite-UX install utilities

Base hp-ux 11i CIFS Server CIFS Client Netscape Communicator PAM Kerberos HP App. Server

MTOE 3D Graphic Dev Kit Netscape Communicator Technical System Configurator

TCOE CIFS Server CIFS Client MLIB MPI PAM Kerberos

Preliminary

hp confidential

hp-ux 11iipf

pricing hp-ux 11i oe positioning

hp-ux 11i

Operating system for commercial servers for the enterprise customers.

Targeted industries: Telco/xSP, Manufacturing, Finance, Banking, Transportation.

TCOE

Operating system for technical server customers for scientific and engineering applications.

Specifically for compute servers, PDM servers and NFS file server

MTOEOperating system for workstations and compute clusters.

hp confidential

hp-ux 11iipf

pricing hp-ux 11i platform support matrix

Everest (4 way)

1x Server

Longs Peak (2)

1X Server

Longs Peak (2)

5X Tech

hp-ux 11i

MTOE

TCOE

Rational: Maximize revenue and gross margins for 1X server business Meets the needs of price sensitive TCD customers

hp confidential

hp-ux 11iipf

pricing hp-ux 11i proposed pricing

List Price

hp-ux 11i $2995/CPU

TCOE $2995/CPU

TCOE

Proposed by TCD$490/CPU

MTOE

Proposed by TCD$245/System

hp confidential

hp-ux 11iipf

pricinghp-ux 11i ISU support matrix for commercial and technical server markets

hp-ux 11i TCOE MTOE

MC SG

OJFS

VxVM

PRM

JVM

ISU supported ISU not supportedRational: Deliver value and command appropriate price forserver-class application

hp confidential

hp-ux 11iipf

pricing hp-ux 11i pricing relative to Microsoft

Microsoft hp-ux 11i

TCOE

MTOE

1 CPU $2895 + client lic. $2995 $245

2 CPU $2895 + client lic. $5990 $245In a 2-way config hp-ux will have a price premium of ~$2200 nett

In a 1-way config hp-ux will be at price parity

In addition Windows .Net has an addition charge for client connections at $40/client.According to DH Brown, typical recommendation is 50 clients per CPU. So For 1-CPU configuration there will be an additional cost of $2000and for 2-CPU configuration there will be an additional configuration of $4000

hp confidential

hp-ux 11iipf

pricing hp-ux 11i pricing assumptions

• microsoft’s pricing of .Net will be at or above Win 2K pricing

• any system price changes (reductions) by Sun or IBM should be

reacted by appropriate price changes in HP HW systems alone

• hp-ux pricing is some what inelastic in the markets and applications

we are targeting

• we will be able to successfully manage low list/low discount pricing

model

• we will be able to successfully prepare and train the product ops, sales

and channels organizations to sell OS as an independent entity