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El Camino Hospital Increases System Uptime While Saving Millions with VERITAS Software; VERITAS Software Helps Tech-Savvy Hospital Deliver Outstanding Patient Care.

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 22, 2004

VERITAS Software Corporation (Nasdaq:VRTS), the leading storage software provider, today announced that El Camino Hospital, which serves several communities in California's Silicon Valley, is now using VERITAS' high availability solution to attain dramatic uptime levels, and has achieved a 24-month return on their investment of approximately $3.4 million.

An independent community hospital located in Silicon Valley, El Camino Hospital is a technology leader, renowned for being the first hospital in the world to implement a computerized physician order-entry system (CPOE), which helps to significantly reduce prescribing and transcription errors. Through its new IT and construction initiatives, El Camino is working towards its goal of building the "smart" hospital of Silicon Valley. New projects include the implementation of patient safety initiatives in technology that include bedside drug bar-coding, wireless handhelds, electronic charts and tablets, and voice-activated communication devices on staff lapels. The hospital's reliance on information systems for every aspect of operations makes high availability of systems and data a top priority. In the 24/7 environment of a hospital, there is never a good time to take an application offline, to fix a problem, or to perform maintenance or upgrades.

According to Joe Wagner, CTO at El Camino Hospital/Eclipsys Outsourcing, before the VERITAS implementation the hospital's uptime was approximately 99 percent -- but that wasn't adequate for El Camino Hospital. "We aim for 99.999 percent because those clinical systems have to be there for physicians and nurses all the time," said Wagner, adding, "Administrative systems are key, too. Downtime directly affects our receivables--just one problem that lasts a few hours or a day could put us back several hundred thousand dollars."

Although El Camino is profitable, it couldn't afford to simply throw money at the challenge of delivering high availability. In fact, like most hospitals, it was looking for ways to consolidate servers to save on hardware, software, and maintenance. It chose VERITAS for a high-availability solution that could also deliver server consolidation. "With VERITAS, we're up virtually all the time. We deliver all departments, all applications, to all end users, 24/7. We've seen instant results and tangible cost savings, for a 24 month ROI of about $3.4 million," said Wagner.

VERITAS clustering is the technology that helps enable El Camino Hospital to achieve high availability with cost savings. Most high-availability solutions are hardware-specific. Because they "double up" the hardware and software to provide for failover, they also double the hardware, software, and maintenance expense of running every application. But VERITAS Consulting helped ECH to design and implement a solution that mirrors multiple live applications running on partitions on various servers, and enables all of these to fail over dynamically to a single cluster or partition. "With VERITAS, we have 15 live clusters or systems able to fail over to single machine," explains Wagner. "This means huge cost savings compared to hardware-based high-availability solutions."

Because VERITAS is not platform-specific, it enables an application to fail over dynamically, even to an older server with a different operating system. Multiple server partitions and domains protect against problems within the data center. El Camino data center staff can also move partitions to different hosts to troubleshoot potential problems, or to create "behind-the-scenes" hardware and software maintenance windows that don't impact performance.

According to Wagner, high availability was simply unaffordable a few years ago, but now that the VERITAS solution is helping to deliver high availability with server consolidation, it's actually saving the hospital money. "For more than a year now, we've been seeing cost savings in servers, storage, operating systems, network interface cards, host adaptors, ports, power supplies, tape drives, and licenses, for a 24-month ROI of about $3.4 million," explains Wagner. "VERITAS has enabled us to consolidate servers, saving $1.1 million in hardware, $1.5 million in server hardware, $886,000 in software, and about $380,000 in maintenance. We also estimate we've saved $2.2 million in lost revenue and productivity. That's a tremendous ROI -- and it doesn't even include the savings that we've achieved through cost avoidance and staff redeployments, which have been significant."

In 2005, the hospital will break ground on a new $300 million facility, in order to meet a state mandate that requires all California hospitals to replace or rebuild aging buildings to withstand the effects of an earthquake. One of the first projects in building the new hospital requires that the data center be moved to a new facility, without disrupting the ongoing activity in the hospital. This is a critical transition for long-term data protection, but also prepares El Camino Hospital for other emergency situations with disaster recovery. In addition to fully optimizing the VERITAS products the hospital purchased for maximum ROI, VERITAS Consulting also worked closely with El Camino Hospital to create a comprehensive business continuity plan for the data center move.

The first phase of the plan protects against campus-wide disruption using multiple partitions and other high-availability features. Another phase of the plan provides for the creation of a failover site -- located off the main power grid, in a non-seismic region -- that can supply offsite failover support and enable all the hospital's applications to continue to run, at approximately 50 percent of normal speeds, even if the primary data center is completely shut down. In its entirety, the plan will specify an architecture for business continuity, spell out ways to leverage currently available assets, provide effective and auditable continuity plans for each aspect of the business, supply implementation and test migration plans, and recommend programs for training staff on recovery tasks and procedures. "VERITAS has solved our immediate need for high availability, and now it's enabling us to address the broader issues of business continuity planning," says Wagner. "VERITAS is our one-stop shop for continuous, cost-effective computing at El Camino Hospital."

About El Camino Hospital

El Camino Hospital, a not-for-profit hospital in Mountain View, Calif., is located on a 41-acre campus in the heart of Silicon Valley. Consistently ranked as a leading hospital in the area, El Camino Hospital recently received a prestigious three-star ranking in the Patients' Evaluation of Performance in California survey. The hospital has received national recognition for several pioneering programs, including cardiac treatments, radiation oncology, and maternity. For more than 42 years, its high caliber staff and affiliated physicians, its comprehensive and innovative services, and its long history of responding to the needs of the community it serves have distinguished El Camino Hospital. For more information, visit www.elcaminohospital.org.

About VERITAS Software

VERITAS Software ranks among the top 10 software companies in the world. VERITAS Software is the world's leading storage software company, providing data protection, storage management, high availability, application performance management and disaster recovery software to 99 percent of the Fortune 500. VERITAS Software's corporate headquarters is located at 350 Ellis Street, Mountain View, CA, 94043, tel: 650-527-8000, fax: 650-527-8050, e-mail: vx-sales@veritas.com, Web site: www.veritas.com.

This press release may include estimates and forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties, including the risk that we will not gain market acceptance of our products and services, the risk that we will not be able to maintain the quality of our end-user customer and partnering relationships, and the risk that we will not manage our business effectively, that could cause the actual results we achieve to differ materially from such forward-looking statements. For more information regarding potential risks, see the "Factors That May Affect Future Results" section of our most recent report on Form 10-K on file with the SEC. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.

VERITAS, the VERITAS Logo and all other VERITAS product names and slogans are trademarks or registered trademarks of VERITAS Software Corporation. VERITAS and the VERITAS Logo Reg. U.S. Pat. & Tm. Off. Other product names and/or slogans mentioned herein may be trademarks or registered trademarks of their respective companies.
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Publication:Business Wire
Geographic Code:1USA
Date:Mar 22, 2004
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