**************************************** * Open Insurance '93 * **************************************** Investment Protection for the HP 3000 and HP 9000 Commercial Systems !!!! (From MPE/iX to HP-UX) EXECUTIVE SUMMARY ----------------- Open Insurance '93 provides customers with investment protection when purchasing an HP 3000 or HP 9000 commercial system. The program allows customers to switch from an HP 3000 MPE/iX system processing unit (SPU) to a comparable performing HP 9000 HP-UX SPU, or vice versa, at a 20% trade-in discount. Customers' purchase agreement discounts also apply. The Open Insurance '93 M56 trade-in discount applies only to the base SPU which includes the operating system user license, standard memory, disk, and tape drives. The M56 trade-in discount does not apply to other options such as add-on memory, add-on disk, compilers, and other software products. Customers can take advantage of this program between 6 months to 36 months after a system is purchased and installed. Brokers, leasing companies, and DARs are not eligible for this program. See Corporate Order Processing Documentation 4.34 for order details. ******************************************************************* * Open Insurance '93 gives HP customers the additional "peace * * of mind" when purchasing an HP commercial system. Customers * * now have the option to switch between the MPE/iX SPUs and the * * HP-UX SPUs at their own pace when they choose to do so in the * * future ! * ******************************************************************* WHEN SHOULD YOU USE THIS PROGRAM? --------------------------------- You should use Open Insurance '93 to leverage new business by offering prospective customers the flexibility to switch hardware platforms as their system needs change, or to retain current HP customers who have decided to leave their current operating system environment. This program should never be used to actively encourage customers to move from one operating system environment to another. Use the following guideline to determine if your prospective new or installed base customer is a good candidate for the Open Insurance program. Type 1: Prospective customer is apprehensive about making a HP-UX or MPE/iX purchase without some type of assurance that they can move to MPE/iX or HP-UX in the future. In this case, you should position Open Insurance '93 as the investment protection that they need. Type 2: Installed base customers looking to switch to a HP-UX or MPE/iX environment WITHOUT many MPE/iX-to-HPUX or HPUX-to- MPE/iX software migration concerns. Typical reasonings include: (1) customer's current ISV no longer support an application on MPE/iX or HP-UX, or ISV plans to switch to develop a MPE/iX or HP-UX based applications, (2) customer is evaluating or is migrating to an application that runs on MPE/iX or HP-UX only, (3) customer has made a strategic decision to deploy the HP 3000 or HP 9000 to run an entirely different part of its operation. For operating system migration assistance, contact your local PSO technical consultant. For application porting assistance, contact CSY or GSY sales development. ******************************************************************* * Open Insurance '93 shows HP's commitment to both the HP 3000 * * and the HP 9000 as two industry-leading open system alter- * * natives! CSY and GSY are committed to helping you to win * * new accounts as well as retaining existing accounts ! * ******************************************************************* KEY ELEMENTS OF OPEN INSURANCE '93? ----------------------------------- Open Insurance '93 effectively obsoletes the old Open Insurance and Cross Grade programs from CSY and GSY. The new Open Insurance '93 program focuses on current product offerings from CSY and GSY. * Open Insurance '93 covers the HP 3000 9x7, 99x series, and the HP 9000 F/G/H/I, and 890 series. It is a "bi-directional" program covering both the HP 3000 and the HP 9000. * The M56 trade-in discount applies only to the base SPU which includes the operating system user license, standard memory, standard disk, and tape drives. The discount does not extend to other options such as add-on memory, add-on disk, compilers, and other software products. * Customers may take advantage of Open Insurance '93 anytime between 6 months and 36 months after an HP 3000 or HP 9000 SPU is purchased and installed. * M56 trade-in between comparable performing SPUs. Due to inherent differences between MPE/iX and HP-UX, one processor level upgrade is typically required on the HP-UX SPU in order to support the same number of users. * Open Insurance '93 trade-in discount is available for HP-UX user license ugrades. Customers cross grading from an HP 3000 to an HP 9000 system may purchase an HP-UX license upgrade with a corresponding license credit. The license upgrade can range from a minimum of 8-users (#UA3) up to a maximum equal to the base user license level of the HP 3000 system. For example, when cross grading from a Series 937SX, which has a 32-user base license level, to a Model I30, which has a 2-user license, a license upgrade of up to 32-users plus a 2-user license credit are required. * Customers must return the old SPU with all standard internal features intact no later than 60 days after receiving the new SPU. HP reserves the right to remarket the returned SPU. * The Open Insurance trade-in discount is subject to change as we evolve into new product offerings. Open Insurance '94 will include the latest technologies from HP at a different M56 trade-in discount. HOW TO USE OPEN INSURANCE '93 (OI'93) ------------------------------------- Step #1: Identify the correct cross grade path using the table below. Use the Open Insurance '93 Cross Grade Table to look up the exact product numbers that are eligible to receive the Open Insurance '93 M56 trade-in discount. Step #2: Apply the 20% M56 trade-in discount to eligible products. Step #3: Then apply customer's Purchase Agreement Discount. Step #1 Step #2 Step #3 _______________________________________ _______________ ______________ | Write Down Eligible Product Numbers | | Apply OI'93 | | Then Apply | --------------------------------------- | Trade-In | | Customer's | Trade In This ===> Purchase This | Discount | | Purchase | _______________________________________ | to | | Agreement | |HP 3000 ===> HP 9000 | | Eligible | | Discount | |-------------------------------------| | SPU & HP-UX | | | |917LX (8)* ===> F20 + HP-UX | | Products | | | |927LX (20) ===> F20 + HP-UX | | | | | |937LX (32) ===> F20 + HP-UX | | || | | | |947LX (100) ===> F30 + HP-UX | | || | | | |957LX (64) ===> F30 + HP-UX | | \/ | | | |967LX (100) ===> F30 + HP-UX | | | | | |937RX (32) ===> G30 + HP-UX | |Take 20% Off!| | | |947RX (100) ===> G30 + HP-UX | | | | | |957RX (64) ===> G30 + HP-UX | --------------- -------------- |967RX (100) ===> G40 + HP-UX | |987RX (100) ===> G60 + HP-UX | |987/150RX (100) ===> G70 + HP-UX | |937SX (32) ===> I30 + HP-UX | |947SX (100) ===> I30 + HP-UX | |957SX (64) ===> I30 + HP-UX | |967SX (100) ===> I40 + HP-UX | |977SX (100) ===> I50 + HP-UX | |987SX (100) ===> I60 + HP-UX | |987/150SX (100) ===> I70 + HP-UX | |990/100 (100) ===> 890/100 + HP-UX| |992/100 (100) ===> 890/200 + HP-UX| |992/200 (100) ===> 890/300 + HP-UX| |992/300 (100) ===> 890/400 + HP-UX| |992/400 (100) ===> 890/400 + HP-UX| | | |* (standard MPE/iX user level) | |-------------------------------------| |HP 9000 ===> HP 3000 | |-------------------------------------| |F10 ===> 917LX | |F20 ===> 947LX | |F30 ===> 947LX | |G30 ===> 957RX | |G40 ===> 967RX | |G50 ===> 967RX | |G60 ===> 987RX | |G70 ===> 987/150RX | |H20 ===> 947SX | |H30 or I30 ===> 957SX | |H40 or I40 ===> 967SX | |H50 or I50 ===> 987SX | |H60 or I60 ===> 987SX | |H70 or I70 ===> 987/150SX | |890/100 ===> 990/100 | |890/200 ===> 992/100 | |890/300 ===> 992/200 | |890/400 ===> 992/300 | --------------------------------------- * Note, due to inherent performance differences between MPE/iX and HP-UX, one processor level upgrade is typically required on the HP-UX SPU in order to support the same number of users. OPEN INSURANCE '93 CROSS GRADE TABLE ------------------------------------ HP 3000 Trade In Systems ===> HP 9000 Purchase Systems (20% M56 Trade-In Discount Applied to the SPU and the User License Upgrade and Credit Only) ----------------------------------------------------------------------- Returning SPU System System Purchase SPU Purchase HP-UX User * Product No(s). Model No. Model No. Product No. License Product No. -------------- --------- --------- ----------- --------------------- A1770A, A1770B 917LX ===> F20 A2432A B3108L #UA3,#UB1 A1771B, A1771C 927LX ===> F20 A2432A B3108L #UA3-#UA5,#UB1 A1758A, A1772B 937LX ===> F20 A2432A B3108L #UA3-#UA7,#UB1 A1752B, A1708C 947LX ===> F30 A2433A B3108L #UA3-#UAB,#UB1 A1707A 957LX ===> F30 A2433A B3108L #UA3-#UA9,#UB1 A1757A 967LX ===> F30 A2433A B3108L #UA3-#UAB,#UB1 A1772B 937RX ===> G30 A2434A B3108L #UA3-#UA7,#UB1 A1708C 947RX ===> G30 A2434A B3108L #UA3-#UAB,#UB1 A1709B 957RX ===> G30 A2434A B3108L #UA3-#UA9,#UB1 A1710B 967RX ===> G40 A2435A B3108L #UA3-#UAB,#UB1 A2317B 987RX ===> G60 A2980A B3108L #UA3-#UAB,#UB1 A3004A 987/150RX ===> G70 A2971A B3108L #UA3-#UAB,#UB1 A1772A, A1772B 937SX ===> I30 A2365A B3108L #UA3-#UA7,#UB1 A1708B 947SX ===> I30 A2365A B3108L #UA3-#UAB,#UB1 A1709A, A1709B 957SX ===> I30 A2365A B3108L #UA3-#UA9,#UB1 A1701A, A1701B 967SX ===> I40 A2365A B3108L #UA3-#UAB,#UB1 A2300A, A2300B 977SX ===> I50 A2363A B3108L #UA3-#UAB,#UB1 A2317A, A2317B 987SX ===> I60 A2982A B3108L #UA3-#UAB,#UB1 A3004A 987/150SX ===> I70 A2362A B3108L #UA3-#UAB,#UB1 A1809A, A1811A 990/100 ===> 890/100 A1826A#101 B3108L #UA3-#UAB,#UB3 A1809A, A1811A 992/100 ===> 890/200 A1826A#102 B3108L #UA3-#UAB,#UB3 A1809A, A1811A 992/200 ===> 890/300 A1826A#103 B3108L #UA3-#UAB,#UB3 A1809A, A1811A 992/300 ===> 890/400 A1826A#104 B3108L #UA3-#UAB,#UB3 A1809A, A1811A 992/400 ===> 890/400 A1826A#104 B3108L #UA3-#UAB,#UB3 * Customers can order from a range of HP-UX user license upgrade options as specified above. Options range from #UA3 (8 users), #UA5 (16 users), #UA7 (32 users), #UA9 (64 users), to #UAB (128 users). HP 9000 Trade in Systems ===> HP 3000 Purchase Systems (20% M56 Trade-in Discount Applied Only to the SPU Product with Option and Chassis (if noted)) ----------------------------------------------------------------------- Returning SPU System System Purchase SPU and Chassis Product No(s). Model No. Model No. Product Numbers. -------------- --------- --------- -------------------------------- A2428A F10 ===> 917LX A2379A #UA3 + A2413A (chassis) A2428A F20 ===> 947LX A2391A #UBD + A2418A A2428A F30 ===> 947LX A2391A #UBD + A2418A A2429A G30 ===> 957RX A2396A #UA9 + A2421A A2429A G40 ===> 967RX A2400A #UBD + A2423A A2429A G50 ===> 967RX A2400A #UBD + A2423A A2429A G60 ===> 987RX A2408A #UBD + A2426A A2429A G70 ===>987/150RX A3010A #UBD + A3005A A2430A H20 ===> 947SX A2391A #UBD + A2420A A2430A, A2431A H30,I30 ===> 957SX A2396A #UA9 + A2422A A2430A, A2431A H40,I40 ===> 967SX A2400A #UBD + A2424A A2430A, A2431A H50,I50 ===> 987SX A2408A #UBD + A3000A A2430A, A2431A H60,I60 ===> 987SX A2408A #UBD + A3000A A2430A, A2431A H70,I70 ===>987/150SX A3010A #UBD + A3006A A1826A 890/100 ===> 990/100 A1811A #835 A1826A 890/200 ===> 992/100 A1811A #836 A1826A 890/300 ===> 992/200 A1811A #837 A1826A 890/400 ===> 992/300 A1811A #838 ------------------------------------------------------------------------ Open Insurance '93 Cross Grade Process Summary: 1. Customer trades in the original HP 3000/9000 SPU product(s) noted in the far left column. 2. Customers must purchase the corresponding SPU product number(s) noted in the right hand columns. HP 9000 purchases must include the HP-UX license upgrade and credit. 3. The M56 trade-in credit is applied to the noted SPU (with chassis) and license upgrade and credit only. The M56 is placed directly against the product/option. Customer must complete a trade in agreement. ORDER EXAMPLES -------------- This customer is cross grading from an HP 3000 Series 917LX to an HP 9000 Model F20. The customer must return the 917LX SPU (A1770A/B) and purchase the new F20 SPU (A2432A) with an HP-UX license upgrade at a 20% trade-in discount. Because the HP 3000 917LX has an 8-user base license and the HP 9000 F20 has a 2-user license, the 2-to-8 HP-UX user license upgrade can also be discounted by 20%. The M56 is applied as a negative value against the license purchase and a positive value against the license credit. Purchase agreement discounts also apply. ITEM EK PRODUCT # DESCRIPTION QTY PRICE (U.S.) ---- -- --------- ----------- --- ------------ 0100 A2428A HP9000 F Server 1 $ 0.00 0101 A2432A HP9000 F20 SPU 1 $ 13,500.00 M 56 TRADE IN DISC 1 -$ 2,700.00 0102 0200 B3108L HP-UX 9.0 1 $ 0.00 # UA3 8-user license 1 $ 2,575.00 M 56 TRADE IN DISC 1 -$ 515.00 # UB1 2-user credit 1 -$ 1,525.00 M 56 TRADE IN DISC 1 $ 305.00 This VAR customer is cross grading from an HP 9000 Model G30 to an HP 3000 Series 957RX. The customer must return the Model G30 SPU (A2429A) and purchase the new Series 957RX SPU (A2396A #UA9) with the chassis (A2421A). Purchase agreement discounts also apply. ITEM EK PRODUCT # DESCRIPTION QTY PRICE (U.S.) ---- -- --------- ----------- --- ------------ 0100 A1709B HP3000 957RX 1 $ 0.00 0101 A2396A 957RX SPU 1 $ 0.00 # UA9 64 user license 1 $ 40,500.00 (SPU + FOS ONLY) M 56 TRADE IN DISC 1 -$ 8,100.00 0102 A2421A 957RX CHASSIS 1 $ 0.00 0103 COORDINATION WITH OTHER DISCOUNTS --------------------------------- Open Insurance '93 trade-in discount may NOT be combined with other promotional discounts. All standard "off-the-shelf" purchase agree- ment discounts exhibited, but no specially negotiated discount agreements, may be applied after the Open Insurance '93 M56 trade- in discount is applied. Open Insurance '93 may not be combined with the Demo/Development discount. TRADE IN AGREEMENT ------------------ To ensure that the customer return trade-ins, and that their order is processed properly, Sales Reps are required to complete the Trade In Agreement form and get the customer's signature. Sales Rep FILL OUT the Trade In Agreement (attached at end of article) REVIEW the Trade In Agreement Terms and Conditions with customer Customer SIGN the Trade In Agreement Sales Rep GIVE copy of agreement to OP COORDINATOR when placing order (refer to Promotion No. 4.33) OP Coordinator FAX copy of agreement to CSY the SAME DAY THE ORDER IS PLACED and attach a copy of the order per Open Insurance '93 OP instructions. Address the fax to Open Insurance '93 and send to (408) 447-0557. The Trade In Agreement states that the customer must release their trade-in system within 60 days of receipt of their cross-grade system or will be rebilled for unearned trade-in credits. RETURN REQUIREMENTS ------------------- Open Insurance '93 works in accordance with all CSY and GSY trade-in arrangements. Through the execution of a M56 trade-in discount, FRD will be notified of the returning SPU(s) and in turn activate the collection process. Customers will be given 60 days to return the old SPU(s). The following conditions must be met. * Customers MUST return complete HP 3000 or HP 9000 SPU, which includes CPU, standard memory, standard disk, standard tape drive, I/O card, chassis, and system console. * Returned systems must be in GOOD WORKING CONDITION. All parts must be operable, and no parts can be broken. HOW WILL OPEN INSURANCE WORK WITH FUTURE PRODUCTS FROM GSY AND CSY? ------------------------------------------------------------------- The Open Insurance program will be extended to cover the latest product offerings from CSY and GSY. New cross grade paths will be established for new products at a new Open Insurance trade-in discount rate. COMPETITIVE OVERVIEW -------------------- With Open Insurance '93, HP is providing our customers with the best investment protection available today. Open Insurance '93 should not not be compared to other trade-in programs because it is not designed to encourage migration between HP-UX and MPE/iX, but rather to give HP customers maximum flexibility and financial incentive to continue to do business with either the HP 3000 or the HP 9000. Open Insurance '93 is competitively positioned with respect to other trade-in programs. DEC is offering a 20% incremental discount to cross customers from Sun to Alpha AXP workstations. IBM and SGI do not have standard trade-in programs; however, IBM just launched an Apollo migration program. IBM AS/400 and RS/6000 are independently operated and do not offer any joint marketing programs. Open Insurance '93 is unique. It is the only program ini the industry today that extends future trade-in options between two distinctive operating system environments supplied by the same vendor. We will keep you posted on the latest cross grade developments from our competitors. Q&A --- 1. In addition to the hardware cross grade, will there be any porting problem moving from HP-UX to MPE/iX and vice versa? There should be no major issues porting applications that are POSIX-compliant to the HP 3000 or HP 9000. 2. What about high-level languages such as COBOL and FORTRAN? Languages like COBOL and FORTRAN can be migrated to HP-UX or MPE/iX; however, they will require a recompile which means that COBOL and/or FORTRAN compilers for HP-UX must be purchased. If the customer's high-level language uses MPE intrinsics, then that portion of the code will have to be re-written. 3. Why are conversion kits not offered between the HP 3000 and HP 9000? The HP 9000 HP-UX systems and the HP 3000 MPE/iX systems share identical PA-RISC processor technology; however, differences such as boot ROMs, embedded disk, memory, operating system, networking and I/O requirements, and powerfail battery backup exist between the HP 9000 and the HP 3000 base SPU configurations. These hard- ware and software differences make it impractical to offer a con- solution. Also, conversion kits are cumbersome to implement and often cause unnecessary system downtime for the customers. Open Insurance '93, with its trade-in arrangement, gives customers a way to smoothly transition into their new MPE/iX or HP-UX operating system environment by allowing the old and new systems to run in parallel during the transition process. Customers now get the investment protection without the unnecessary downtime risks. Open Insurance '93 also gives customers brand new warranty coverages on their new systems. 4. Will my customers be able to retain their existing networking hard- ware and software, or will they have to purchase new products? Customers may retain existing networking hardware, or must purchase new hardware and software as follows: Hardware Software 802.3 LAN Link Retain Purchase 802.5 Token Ring Retain Purchase SNA Link Retain Purchase X.25 Link Purchase Purchase ARPA Services ---- Purchase SNA Services ---- Purchase 5. Can my customers use their DTC on the HP 3000 or HP 9000? Customers may use the DTCs they were using on both the HP 3000 and the HP 9000 systems. ARPA 9000 (P/N B1030B) services and either HP OpenView Entry Level DTC Manager/UX (P/N J2120A) for single HP 9000 access, or HP OpenView DTC Manager (P/N D2355A) for multi- ple system access must be purchased. If the customer already has the HP OpenView DTC Manager (D2355A), they may continue to use it. 6. What about the rest of their peripherals, will they get to use them? Refer to the Table of Compatible Peripherals Between the HP 3000 and the HP 9000 in the Open Insurance '93 Program Guide, pages 21-24, or call the GSY/CSY Sales Response Centers. --------------------------------- cut here --------------------------- _____________________________________________________ Hewlett-Packard Open Insurance '93 Trade In Agreement ________________ Customer ___________________________ Program Name # _________________ Address ____________________________ HP Sales Order # _______________ ____________________________________ Customer PO # __________________ ____________________________________ HP Sales Rep ___________________ Customer Contact ___________________ Telnet # _______________________ Phone # ____________________________ HP Order Coordinator ___________ HP Agreement # _____________________ Telnet # _______________________ (To be compiled if "Customer is a reseller) End User Customer ___________________________ Contact _______________ Address _____________________________________ Phone # _______________ _____________________________________________ _____________________________________________ The above information is only intended to be used by HP for return of Trade In Systems. ______________________________________________________________________ | |Trade up Systems | | Trade In System |to be Purchased | |--------------------------------------------------------------------| |Quantity| Model#/Serial#/Memory/Disk/Tape/Console | Trade Up Model | |--------|-----------------------------------------|-----------------| | | | | |--------|-----------------------------------------|-----------------| | | | | |--------|-----------------------------------------|-----------------| | | | | |--------|-----------------------------------------|-----------------| | | | | |--------|-----------------------------------------|-----------------| | | | | |--------|-----------------------------------------|-----------------| | | | | ---------------------------------------------------------------------- If additional space is needed to list Trade In Systems, please attach a separate sheet. ____ Check here is attachment is included. I have reviewed the Terms and Conditions of this Trade In Agreement with the Customer: HP Sales Rep ___________________________________ Date _______________ I understand and agree to the Terms and Conditions of the Trade In Agreement as stated with this Trade In Agreement. Customer Authorized Representative Signature _________________________ Customer Name and Title ________________________ Date _______________ (Copy 1:HP Order Processing;Copy 2:Reseller;Copy 3:End User Customer) (Copy 4:Fax to CSY Open Insurance '93, (408) 447-0557) Terms and Conditions 1. Hewlett-Packard Company ("HP") will extend to an end-user or a reseller buying directly for an end-user (collectively "Customer") a credit on the purchase of HP products in selected configurations under the HP Sales Order identified at the beginning of this Agreement, subject to Customer's satisfaction of its obligations under this Agreement. The HP products (the "Trade-Up Systems to be Purchased") will be eligible for a trade-in discount and a credit for return of old equipment (the "Trade-In Systems") to HP, each as identified on the front of this Agreement. 2. Customers shall deliver the Trade-In Systems to HP's designated carrier within 60 days after receipt by the end-user of the Trade- Up Systems. The delivery of the Trade-In Systems to HP is final, and no Trade-In Systems or any part thereof can be returned to the end-user. Delivery of the Trade-In Systems will be made in accor- dance with the shipping and handling instructions provided by HP to Customer through the program guideline. HP will pay for shipping of the Trade-In Systems from the end-user if delivered as instructed. 3. Title to the Trade-In Systems shall pass to HP upon receipt of the Trade-Up Systems by the end-user. Risk of loss for the Trade-In Systems shall remain with the end-user until delivery to HP's designated carrier. 4. Customer warrants that, when delivered, the Trade-In Systems will be complete and in good working condition. "Complete" means that the Trade-In Systems will include, at a minimum, all hardware, software, and component parts needed for the Trade-In Systems to operate. "Good working condition" means that, at a minimum, all parts of the Trade-In Systems will operate in accordance with their specifications. 5. Customer shall be responsible for completing this Agreement and arranging for delivery of the Trade-In Systems as instructed. All Trade-In Systems are subject to inspection and acceptance by HP upon receipt. If Trade-In Systems are not delivered to HP within the timeframe as set forth above or are not delivered to HP "complete" and in "good working condition" as defined above, Customer shall pay HP a charge equal to the value of the credit for the returned equipment plus any shipping charges paid by HP on such Trade-In Systems; HP will invoice Customer for any such amounts upon inspection of the Trade-In Systems. Upon receipt by HP of Customer's payment of such invoices, title to the Trade-In Systems shall pass to Customer. 6. Customer warrants that the Trade-In Systems are free of any liens or encumbrances, including third party software which may not be transferred or for which royalties are due. Customer shall indem- nify HP from all claims or losses sustained by HP as a result of any liens or encumbrances on the Trade-In Systems. 7. Customer warrants that (i) it has owned and used the Trade-In Systems for at least 6 months and not exceeding 3 years for its own business purposes, (ii) it is the original warranty holder or owner of the Trade-In Systems, and (iii) it is not a leasing company, brokerage house, or agent thereof. In the case of a reseller buying for an end-user, the reseller makes all the foregoing warranties on behalf of its end-users.