Analyst Reports Name HP a Market Share Leader in IT Management Software.

PALO ALTO, Calif. -- HP (NYSE:HPQ) today announced that independent industry analyst firm IDC has named it the No. 1 or No. 2 market share leader in several IT management software markets.

The IDC reports cited HP as No. 1 in the distributed system management,(1) automated software quality (ASQ),(2) and network change and configuration management software(3) markets. Additionally, the company ranked No. 2 in the server provisioning(4) and IT project and portfolio management software markets.(5)

These markets are served by solutions from the HP Business Technology Optimization (BTO) software portfolio, which help customers drive better business outcomes, such as lowering the cost of IT by automating key processes across IT domains, better align IT with the business, and speed service delivery to support strategic business initiatives.

"With so much of business today relying on technology, our customers depend on HP BTO software to bring IT into full alignment with the business and ensure IT investments deliver maximum value," said Ben Horowitz, vice president and general manager, BTO products, Software, HP. "We are committed to delivering the best BTO software in the industry, and it is a strong endorsement to be so highly ranked by IDC in these key markets."

No. 1 in distributed system management software

According to IDC, the distributed system management software market segment includes software tools that are routinely used in IT operations or by end users to manage system and application resources for distributed systems. This market is composed of six major constituent functional markets,(1)and HP was named first or second in revenue in three of these sub-markets.(6,7)

According to the reports:

* HP achieved first place in worldwide software license revenue in the overall distributed performance and availability management software market in 2006.(6)

* The market leader for 2006 in worldwide distributed event automation software revenue by a wide margin was HP, which was able to take first place in this market for the fifth consecutive year.(6)

* HP moved up sharply to reach second place overall in worldwide system management software market revenue in 2006 and continued to grow at substantially faster rates than the overall system management software market.(7)

"HP's revenue leadership in these markets was boosted by the acquisition of Mercury Interactive in 2006," wrote Tim Grieser, program vice president, Enterprise System Management Software, IDC, and author of three of the reports. "The acquisition combines Mercury's BTO solutions and messaging with HP Software's long established enterprise management software for systems and networks."(7)

HP Software offerings for the distributed system management market help IT gain visibility into operations from a business perspective so it can better align with business priorities. These offerings include:

* HP Operations Center allows IT to consolidate availability, event and system performance management across existing IT domains to increase staff efficiency and streamline operational processes. It provides a comprehensive perspective on infrastructure services and leverages a combination of intelligent agents and agent-less technology.

* HP Network Management Center automates the essential lifecycle tasks of operating a network, including network discovery and continuous monitoring, root-cause analysis and deployment of configuration changes. Integrated with HP Operations Center, it provides a cross-domain infrastructure management solution.

* HP Business Availability Center enables IT to monitor the health of applications and business services from a user's perspective. It includes capabilities to manage end-user experience, deliver on service level expectations and accelerate problem isolation and resolution.

* HP Service Management Center automates and streamlines the delivery and support of IT services to the business. It provides capabilities to orchestrate and automate key IT processes across process domains, manage the full lifecycle of IT assets, enable the complete financial management of IT and drive rapid tactical and strategic decisions based on quantitative business intelligence.

No. 1 in automated software quality

According to IDC, HP Software "remains by far the most dominant vendor in the ASQ arena," and IDC expects to see significant growth for HP moving into 2007.(2) IDC defines ASQ (automated software quality) to include tools which support software unit testing or system testing or both; they also support software quality assurance.(2)

"We expect HP to build on its existing strength with core improvements to its testing product line," said Melinda-Carol Ballou, program director for the Application Lifecycle Management Service and principle analyst, IT Management Service, IDC, and author of two of the reports. "HP Software's strength in SOA, opportunities in information lifecycle, and operations for service quality management and governance are potentially fertile areas for growth."(2)

HP's offerings in this space include HP Quality Center and HP Performance Center, which help customers ensure that their applications deliver the right functionality and performance to meet the requirements of their business.

No. 1 in network change and configuration management software market

In addition, HP data center automation software (from the recent Opsware Inc. acquisition) was the market share leader and "saw the largest gain, more than tripling its revenue share from 2005 to 2006" in the network change and configuration management software market, according to IDC.(3)

IDC identified Opsware Inc. as the fastest growing vendor in the worldwide network change and configuration management market for the period 2005-2006. Opsware saw the largest gain, more than tripling its revenue share from 9.4 percent in 2005 to 27.1 percent in 2006.

According to IDC, the network is becoming a key component in the execution of the business model and, in some cases, it is the business model. Network change and configuration products are one way to reign in the chaos that can exist when changes are made in a manual ad hoc fashion. Network change and configuration products provide a framework that gives detailed insight into the network devices and thereby greater understanding of the network environment.(3)

No. 2 in server provisioning software market

IDC also identified Opsware Inc. as the No. 2 vendor in the worldwide server provisioning software market for the period 2005-2006, in terms of software revenue. Opsware achieved this ranking with $82 million in revenue and 24.4 percent market share.(4)

Opsware is recognized as one of only two vendors to increase its market share from 2005-2006, securing more than double the market share of the other vendor. The combined market share of HP and Opsware in the server provisioning market would place HP first in the market.

The server provisioning market is centered on the deployment, configuration and management of server system and application software stack images. The HP Data Center Automation solution provides capabilities from initial provisioning of servers, networks and storage devices to managing ongoing changes and compliance requirements.

No. 2 in IT project and portfolio management software market

In a separate IDC report, HP Software was noted for its second place in total revenue in the worldwide automated IT project and portfolio management (IT PPM) software market.

PPM applications are used for defining, estimating, tracking and optimizing the tasks and resources required to plan and complete a project as well as to manage the portfolio of an enterprise's body of projects, including "what if" analysis on proposed projects.

IT PPM tools facilitate joint business/IT planning. These products provide portfolio visibility into IT projects, programs and resource allocations and costs in conjunction with expected business value to help enable effective prioritization.(5)

HP's offerings in this area include HP Project and Portfolio Management Center, which standardizes, manages and captures the execution of project and operational activities. It optimizes overall IT portfolio decision-making by providing critical real-time information.

More information about HP Software offerings is available at www.hp.com/go/software.

About HP

HP focuses on simplifying technology experiences for all of its customers - from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world's largest IT companies, with revenue totaling $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP is available at www.hp.com.

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

(1) IDC, "Worldwide Distributed System Management Software 2007-2011 Forecast Summary and 2006 Vendor Shares," Doc # 208325, by Tim Grieser Stephen Elliot, and Frederick W. Broussard, August 2007.

(2) IDC, "Worldwide Automated Software Quality 2007-2011 Forecast and 2006 Vendor Shares: Growing Up in a Smaller World," Doc # 207580, by Melinda-Carol Ballou, July 2007.

(3) IDC, "Worldwide Network Change and Configuration Management 2007-2011 Forecast and Analysis," Doc # 206191, by Tracy Corbo, March 2007.

(4) IDC, "Worldwide Server Provisioning Software 2007-2011 Forecast and 2006 Vendor Shares," Doc # 208399, by Stephen Elliot, August 2007.

(5) IDC, "Worldwide Automated IT Project and Portfolio Management Software 2007-2011 Forecast and 2006 Vendor Shares: Dynamic Consolidation Extends a Growing Market," Doc # 208144, by Melinda-Carol Ballou, August 2007.

(6) IDC, "Worldwide Distributed Performance and Availability Management Software 2007-2011 Forecast Summary and 2006 Vendor Shares," Doc # 208315, by Tim Grieser, Stephen Elliot, and Frederick W. Broussard, August 2007.

(7) IDC, "Worldwide System Management Software 2007-2011 Forecast and 2006 Vendor Shares," Doc # 208275, by Tim Grieser, Stephen Elliot, and Frederick W. Broussard, August 2007.

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