IMAGINATIVE SOLUTIONS TO CUSTOMER REQUIREMENTS Slide 01: Imaginative Solutions. . . It takes a unique combination of imagination and rapport to help people solve real business problems. Hewlett-Packard has a 50-year history of developing strong relationships with customers, working with them to understand their needs and only then providing products which can truly meet those needs. Today we'd like to talk with you about HP's approach to workstations, that fast-moving, technology-driven part of the computer industry. It's an approach driven by both imagination and customer needs: vision and reality. Slide 02: Vision and Reality for the 90s The decade of the 1990s has arrived; with it has arrived the reality that Hewlett-Packard envisioned nearly a decade ago: true distributed computing in a multivendor environment. However, this environment as it exists today is complex even for a technically sophisticated user. The challenge for the nineties is to create a single view into this distributed environment. In a way, it's like combining the features of Domain/OS with the ease-of-use of a Macintosh(tm). When we've fully created this environment, machines from many different vendors will act as a cohesive, cooperative whole, providing their users with a single, consistent view of resources, system administration, information and other users. Of course, many firms in the industry share some version of this idea, but really creating it requires not only technology, but also a rigorous and consistent commitment to standards and open systems. HP recognizes another reality: customers have needs beyond implementing technology. It does no good to talk about visions of the 90s if you're unable to meet these fundamental customer needs: o Broad availability of applications o Compatibility with their existing environment, whether through portability of code, interoperability with other systems on their network or a single ease-of-use paradigm across their systems. o Price/performance to meet the needs of today's demanding, network-oriented, graphically driven applications. o Growth path to enable them to grow the capability of their systems or networks to meet the needs of their growth and the demands of tomorrow's environments. Slide 03: Why Choose HP? Hewlett-Packard's strengths lie in this convergence of vision and reality. We understand the vision of the 90s: our goal is to provide the user with transparent access of all the resources in a distributed computing environment from a single view. But we also understand the realities customers face. We've made the investments that will allow us to achieve the vision and address the four key customer needs. The Apollo acquisition is an obvious example, but certainly our commitment nearly a decade ago to evolve to industry-standard connectivity and our early development of PA-RISC architecture are other important investments. Let's look at the four key needs we summarized earlier: o Applications. It's here that our investment really paid off. Over 3200 applications support Hewlett-Packard Apollo workstations. More are being delivered on almost a daily basis. No other workstation vendor offers such a breadth of applications, giving customers an unparalleled choice of workstation solutions. o Compatibility. HP is a recognized leader in delivering open systems computers and networks based on industry standards. This enables HP systems to interoperate easily in a standards- oriented environment. Additionally, it becomes much easier to port applications to HP workstations. o Price/Performance. We have a strong history of delivering excellent price/performance: o The 825, one of the first RISC workstations, led the industry in price/performance back in 1987. o The 319SRX delivered 3D solids modeling at a breakthrough price in 1988. o The 340C led the industry with the first 4 MIPS, 2D color workstation for under $9,000. With the latest workstations from Hewlett-Packard, we are once again demonstrating our ability and intent to remain extremely competitive in workstation price/performance. .pa o Growth Path. HP is acknowledged as the industry leader in protecting customer investment. Our board upgrades have enabled customers to scale performance without having to replace entire systems. Today, we'll discuss new, innovative ways to assure future growth paths for our workstation customers. Slide 04: HP's Investment is Ready. . . Earlier, we said one of the most important requirements is a rigorous commitment to open systems. Our record here is outstanding and gaining recognition as we'll see shortly. The Apollo merger itself was an obvious example of investment to achieve the critical mass needed to succeed in this competitive market. One result is a software catalog that includes some 3200 products. And, of course, we have and are investing in the technology to keep our program strong. Developments like PA-RISC, graphics, NewWave, NCS and others have already given us a reputation as leaders in the important technologies of the 90s. Slide 05: Hewlett-Packard: "The Gathering Force" The industry analysts already understand. Here is a quote from April of this year. It's from an excellent report titled "Hewlett-Packard: 'The Gathering Force.'" It reads: "Hewlett-Packard is uniquely perceived among computer users as possessing the size and stature to inspire confidence within boardrooms and as having a total commitment to open systems." What does this mean for you? If you remember only one phrase from this presentation, think about this: our commitment is to industry standards, not standardized products. This means we'll continue to deliver to our customers the state of the art in performance and new features with a commitment to standards to ensure that this innovation is compatible with our existing products and with the growth path to protect our customers' investments. Anyone who would tell you that all the innovations are finished and that the best decision is to adopt standardized architectures and instruction sets is technologically naive. HP's strategy of industry standards, not standardized products, is the right strategy for the 90s and will enable us to continue to offer more rapid and compelling performance than our competitors. But even though this rigorous and comprehensive commitment to standards is the cornerstone of our strategy, it's not enough by itself. There has to be more. . .and there is. Slide 06: Innovation with Investment Protection At Hewlett-Packard, we pride ourselves on two things: our technological vision and our commitment to understanding the needs of our customers. Earlier, we spoke about the vision and the reality that you see on the left. On the right are the elements of HP's workstation strategy as it relates to the user's vision of a single view into a multivendor, distributed computing environment, coupled with the four fundamental customer needs, along with our investment protection strategy. For example, our standards commitment addresses the user requirements of compatibility and growth path. Slide 07: HP Workstation Strategy Our rigorous commitment to standards is critical and absolutely necessary, but not sufficient. We are also committed to leadership in four key areas: o Price/performance. Workstation users demand a high level of price/performance. HP's workstations deliver a balanced approach to both graphics and CPU performance. o Team Computing. Managers recognize that most people don't work by themselves. They work in teams, sometimes formal, sometimes ad hoc. HP's approach is to develop computing solutions that facilitate teamwork. Our term for this is team computing--the implementation of NewWave Computing for project teams. o Ease-of-use. The whole idea is to make workstations as easy to use as the telephone. Beginning with HP-VUE, our Visual User Environment, we provide an outstanding user interface that completely shelters the user from the underlying UNIX(tm) environment. o Investment Protection. HP's hardware investment protection has always been second to none. We'll talk about how we continue that trend with new hardware upgrade programs our competitors can't touch. Today, we'll also discuss our strategy for software investment protection: innovative ways to protect software investments without restricting the underlying technology. Slide 08: HP Workstation Price/Performance Strategy Let's begin discussing our price/performance strategy with two key points: o We are committed to RISC Each has an important role to play. Our position for RISC is extremely simple: performance leadership. By the end of the year, we'll be able to show the results of one of the largest RISC workstation R&D efforts in the industry, based on the leadership PA-RISC processor family. These will be systems with exceptional performance levels and industry-leading price/performance levels. And these will only be the first of a many generations of PA-RISC workstations. o We are committed to 68K Our position regarding the 68K is equally straightforward: leadership in compatibility and application availability with competitive price/performance. Our 68K products offer binary compatibility for existing Domain/OS and HP-UX customers and a vast array of applications, the large installed base of 68K workstations. With the advent of the 68040, HP's 68K workstations will offer highly competitive price/performance while retaining the base of over 3200 applications. Not only that, but the performance of our 68K systems will be increasing over time: we are guaranteeing 68K-based systems with greater than 40 MIPS performance. Both today's 68K systems and the future PA-RISC workstations will interoperate well together in the distributed environment of the 90s. Slide 09: Introducing the HP Apollo Series 400 We're pleased to demonstrate the success of our product strategy with the introduction of the HP Apollo Series 400 workstations. These robust workstation systems offer a number of key features: o Leadership Price. Offering competitive price/performance, the Series 400 also offers low entry prices at all levels. o Broadest Graphics Functionality. From 2D monochrome all the way up to 24-plane, 3D solids rendering with ray-tracing and radiosity, HP's workstation family offers the broadest range of graphics functionality of any workstation vendor. .pa o Object Code Compatibility. Whether you're running HP-UX or Domain/OS, these systems are object-code compatible with both operating systems. o Broadest Applications Offering. Because we are using the 68030 and 68040, we still have access to the vast array of applications available. The bottom line: HP offers the strongest investment protection in the workstation industry. Slide 10: Introducing. . .HP Apollo Series 400 Here is a snapshot of the Series 400 family. There are three desktop systems and two tower systems: o The 400dl is a diskless system with 12 MIPS performance, a 19-inch monochrome monitor and compatibility with existing software--all for $4,990. Plus, it's upgradeable to a 68040 system later, like all of our Series 400 line. o The 400t is more flexible than the 400dl, with up to 400 MB of internal mass storage and choice of networking. o The 425t desktop system is based on the MC68040, offering competitive performance at a very reasonable price. o The 400s is a 12 MIPS expandable, deskside workstation, suitable for applications requiring expansion slots. With mass storage expandability of greater than 4 GB, it is a very capable server for small workgroups. o The premier system in the family is the 433s. With 26 MIPS, access to high performance, 3D graphics and exceptional expandability, this system delivers the raw performance for the most demanding workstation application. The performance numbers quoted here are for HP-UX. The 400dl, 400t and 400s are available today. The 425dl, 425t, 433s will be available concurrent with volume shipments of the 68040; our estimate is October. [Note: We expect that Domain performance numbers will be somewhat less than the HP-UX figures on Slide 10, due to compiler differences. As of 6/15/90, the Domain numbers are not firm. We will supply those via the Hot Line when they are available. Meanwhile, please use good judgment when presenting this slide to Domain customers.] Slide 11: Introducing. . .VRX Family of Graphics No workstation is complete without broad graphics functionality. The VRX family of graphics provides the broadest range of graphics functionality and performance in the industry today. Every member of the VRX family has 1280x1024 pixel resolution standard. Every system has superior X-Window performance. The Personal VRX provides entry-level, 3D functionality at a low price. The TurboVRX offers performance competitive with any system in its class and functionality superior to systems costing far more. Additionally, we are announcing a new software application-- the HP Personal Visualizer--supporting the Personal VRX and the TurboVRX. The Personal Visualizer brings revolutionary ease-of-use to a formidable task: taking a design and wrapping a 3D surface around it. The Personal Visualizer makes full use of VRX features such as radiosity, but in such a way programming isn't required. Slides 12 and 13: Series 400 Price/Performance and Price But does the Series 400 deliver competitive price/performance? Absolutely--better price/performance and better price. For example, the 400dl has nearly the same price/performance as the SPARCstation SLC--but has a 19" monitor and the option to upgrade to better performance. Not only do you get comparable price/performance ratios, but the actual price of the systems is lower as well. This allows you to bring the productive power of 12-26 MIPS workstations to more of your people. [Note: How to read these slides: on the left are price/performance comparisons--$/MIPS. This is important to establish the competitiveness of the new Series 400. On the right are the same products, but the Y-axis is just $. This gives you a way to position the series 400 from both a price/performance perspective and an absolute price perspective.] Slide 14: HP's Family of Servers The Series 400 also joins our family of servers for peripheral, database and compute applications. o For project teams, the 400 series server configurations, with their large internal disk capacity and I/O expandability, serve as ideal file and peripheral servers. o The Series 600/800 systems, because of their capability of managing very high capacity, high- performance disks, plus their I/O throughput, are winning database servers. o And the DN10000, with its multiprocessing support and vector performance, is an outstanding compute server. Slide 15: HP's Commitment to RISC Now that you've heard our Motorola 68K story, let's shift gears and discuss our RISC workstation strategy. On this chart are two curves. The upper curve illustrates the historical price/performance trend for expandable systems; the lower curve shows the curve for compact systems with limited expandability--the "hot box" curve. On it, you can see the price/performance points for some of the key players in the industry. The key point we'd like to make is that HP guarantees that our RISC workstation program will deliver systems that will be below these curves--i.e., better than the industry. In fact, we have announced that the performance of our upcoming RISC workstation product line will exceed 50 MIPS and with floating point performance in the range of 12-20 megaflops. How can we make such a bold assertion? First, we know both where the industry is today and where it's heading. Secondly, we understand our own design process and the semiconductor technology involved. Stay tuned: you'll hear more before the end of 1990. The next obvious question is: what operating system will run on our PA-RISC workstations? As a practical matter, HP-UX will run on the PA-RISC workstations at intro, but our strategic decision is to focus our development effort on OSF for these products, instead of a straight port of Domain/OS. We are convinced that we can build many of the Domain/OS features into a next-generation operating system based on industry standards and give all of our customers access to this level of performance. Slide 16: HP's RISC Strategy HP has been developing RISC-based computer systems since 1986. Currently, Hewlett-Packard has two RISC workstation families: the Series 800, based on HP's PA-RISC, and the DN10000, using the PRISM architecture from Apollo. In December 1989, we announced we would offer upgrades to the DN10000 to roughly 2X the performance of the current DN10000, and that we would introduce a new family of RISC workstations based on PA-RISC. We recently confirmed these plans and announced more performance details that you see here. The DN10000 remains HP's highest performing compute server. The upcoming generation of RISC workstations will set new industry performance levels. Slide 17: Investment Protection - Hardware Hewlett-Packard is committed to protecting the investment of both existing and new customers. This slide maps out our investment protection plan. First, existing Series 300 and DN3000/3500/4500 customers can move to 68040 performance with a board upgrade. Customers who purchase the Series 400 upgrade (capable of running either Domain/OS or HP-UX) have an exceptional upgrade path: we call it the "40 Plus program." Owners of Series 400 systems are guaranteed upgrades to 40 MIPS or better. For everyone, we will offer board upgrades to future 68K products with at least 40 MIPS performance. Series 400 users with Personal VRX or TurboVRX graphics often need an even higher level of computer performance, given the nature of 3D graphics. For these customers, we are offering 50% trade-in credits to our future PA-RISC workstations. No one else in the industry offers this level of hardware investment protection. This is a good time to introduce our parallel plan for protection of your investment in software. Slide 18: Investment Protection - Software Because of our adherence to industry standards, HP workstations have had a history of applications portability. However, in today's environment of rapid technology change, we needed a strategy that would allow us to improve our ability to offer our customers superior portability: Provide source code portability and transparent system interoperability across all current and future HP workstations. The result is what we call our Application Portability Specification, with the objective of allowing developers to simply recompile and run their software, with minimal changes in their source code, regardless of whether they are moving their code between different hardware platforms, operating systems or both. There are four key enablers which make this possible: o Standard Interfaces. Careful adherence to standard interfaces (and defining ambiguous interfaces identically across multiple systems). o Common Subsystems. Using common subsystems (disk interfaces, I/O buses and graphics) ensures another level of source code portability and interoperability. o Tools and Services. HP will offer a rich set of tools (such as filters to check for code differences) and services (such as qualification centers for testing code) to validate portability. o Upgrades. Both hardware and software upgrades to future systems will ensure that our customers have growth paths as required to meet their needs. Slide 19: Application Portability Specification How are we ensuring applications portability? First, we are carefully defining standard software interfaces across hardware and systems software platforms. If customers write to the portability specifications listed in this slide, we will ensure complete source code compatibility across all our systems. The base level is the X/Open Portability Guide. This first level is industry standards accepted by both Unix International and the Open Software Foundation. The next level is adherence to the OSF Application Environment Specification. This will ensure portability between systems from all the OSF vendors. Finally, we will offer a set of features that are unique to HP and which offer functionality beyond the industry standards. We will offer these consistently across all of our platforms, and in many cases will propose these features as future standards. The sum of these specifications is called our Workstation Application Portability Specification. By offering the Application Portability Specification, we will draw applications to all of our operating systems, because of the reduced effort to support them. Software developers will be able to support a single source code image for all HP Workstation offerings. Not only that, but we'll provide our installed base with outstanding interoperability, and finally we demonstrate that we are applying our resources to the issues that modern software developers face. Slide 20: Application Portability Specification This is another view of the APS, showing examples of industry standard and HP value-added interfaces. The key point to stress is that any HP value-added interface called out in the APS will run on all HP workstation hardware platforms and operating systems. Another point to note is that for the first time, every layer of application software can now be standardized. This hasn't been true in the past. If you think of software layers in terms of system calls, file management, networking, distributed computing, graphics and user interface, there now exists a set of standards which allow uniform application development in a complete way. Developers are no longer required to fill in gaps with a proprietary layer. Slide 21: Application Portability Specification This is a conceptual view of the APS. The key thing to remember is that the APS is actually two things: it's source code portability and interoperability. A developer who adheres to the HP APS only needs to keep a single source code image for all HP platforms. Also, if the developer takes advantage of all the interoperability features (e.g., NCS), then his application will interoperate across all platforms. Slide 22: Portability With Innovation How do major software vendors view the APS? Here the president of Interleaf, the industry leading electronic publishing package, states his view. Our conversations with other developers have elicited similar reactions. Overall, everyone we talked with praised our view of portability. Slide 23: Leadership in Team Computing Let's turn now to the subject of Team Computing. The picture on this slide shows the view users want of a distributed computing environment. They want a single view into the computing environment, including transparent resource access (including applications), easy system admin, simple installation and tools that facilitate team productivity. This slide demonstrates our understanding of these basic requirements. We'll now show that HP can address all of these customer requirements. Recall that Team Computing is the implementation of HP's NewWave Computing Environment for project teams. It's a key piece to achieving that single view into the distributed environment that is the vision of the 90s. Slide 24: Levels of Team Computing Until now, the industry has focused on networks: getting the computers to simply talk to each other. At Hewlett- Packard, we view this as only the first layer of a hierarchy of team computing. It's no longer enough to have computers move data around. First, there needs to be a way for resource-to-resource communication. For example, let's look at a person who might be writing a complex document, with many illustrations and tables. The application may be automatically compiling all the tables in the background while the user is editing. At some point, on a single system, the table compilation may begin to slow the system down enough so that the user sees a lag in performance (e.g., typed characters appear slowly). If the software is written to take advantage of the NCS Remote Procedure Call facility, the routine that compiles the table may actually be on a different network node. The author then sees good performance in his or her editing environment. Also, there needs to be better teamwork between people and computers. For example, NetLS, the Network License Server, will allow system administrators to easily manage software licenses. The system will take care of checking software in and out, so the administrator doesn't have to track how many copies are out on the net. The final layer, which is still under development, are tools that enable people to work together better. Pieces of it certainly exist (electronic mail, for example). But applications such as electronic conferencing, shared windows and others are exciting new areas being investigated. Slide 25: Distributed Computing Team computing is the key to implementing the vision of the 90s, and obviously it must include equipment from more than one vendor. One of the most exciting events in the industry happened recently with the announcement of the Distributed Computing Environment from OSF. OSF recognized this need for a comprehensive, scalable, standard and secure environment for distributed computing. Hewlett-Packard recognized this as a key opportunity and led the process that eventually became the DEcorum reply to the OSF Request for Technology for a distributed computing environment. In the submittal are key HP-developed technologies: NCS, Passwd Etc, HP Diskless and others. We also recognized that these useful technologies would never gain wide acceptance unless they became industry standards. Altogether, some 50 vendors responded to the OSF/RFT (including Sun Microsystems). It was clear that the DCE decision would set a framework for coming generations of multivendor computing. Slide 26: Result: The result of HP's leadership in pulling together the DEcorum submittal was acceptance by OSF of HP's package. Gartner Group, a highly respected consulting company focusing on industry analysis, had highly favorable comments about DEcorum and OSF's acceptance of it. What does this mean to Hewlett-Packard and HP's customers? o DCE is the basis for interoperability for our HP- UX, Domain/OS and future OSF operating systems. We now have a clear roadmap to merge our installed base and older platforms with all of our new hardware platforms and operating systems as we move forward. The basis for this is the Andrew file system, widely recognized as much more transparent and scalable than NFS while retaining NFS compatibility. Imagine a network of OSF, Domain/OS and HP-UX systems with common file system and system administration. This should give customers a secure sense of planned growth with Hewlett-Packard. As an example, Carnegie-Mellon University is running an AFS network with 25 servers, 1200 clients and 9000 users, so when we talk about growth path, there is already an impressive example in place. o The next important point is that the DCE services are very similar to the features that have made Domain/OS the leader in distributed computing for many years. Remember that many of the key pieces of DCE are Hewlett-Packard technologies. The implication is clear: we now have the opportunity to create the next generation Domain/OS, based on industry standards, an "Open Systems Domain/OS." And that is exactly the course we will take. For HP-UX customers, the story is equally good. As we incorporate DCE into HP-UX and into our OSF release, they will for the first time have access to Domain-like features, which will be a breakthrough in their implementation of distributed computing environments. The OSF Request-for-Technology process has worked twice-- once for Motif and recently for Distributed Computing. In both cases, OSF has won acclaim for focusing the industry on best-of-class technologies to address critical areas. Look at what happened with Motif: there are 600 source licenses and 200,000 binary licenses so far, and a growing belief that Motif is the GUI of choice for UNIX. Slide 27: Leadership in Ease-of-Use HP-VUE offers outstanding ease of use. The Macintosh set the standard for ease-of-use in the PC environment only recently matched by Microsoft's Windows 3.0. HP-VUE extends this level of transparency into a true distributed environment. Slide 27a: HP VUE Screen (optional, not on disk) Here is a typical HP VUE screen. Let's walk through the screen: o The right side of the screen shows two File Manager screens. Note that files and applications are represented by icons. Applications can be launched by clicking on them or on associated data files. o Along the bottom are key icons for everyday use. The first four are straightforward: clock, calendar, electronic mail and a calculator. The group of eight buttons in the middle represent a unique feature of HP-VUE: multiple custom workspaces. By simply clicking on one of these buttons, the user can launch an environment customized for a specific need. For example, the environment for ME-CAD may be quite different from the Electronic Publishing environment, yet a user may need to do both. The printer icon can be activated by simply dragging a file over and dropping it on the icon. There's also a help function built in. Overall, HP-VUE represents a new level of ease-of-use in the industry, giving HP a leadership position in this key area of user need. Slide 28: The Architecture of the 90s: Here Today Let's close by returning to our opening image of the 90s computer environment: a multivendor, distributed computing environment which is accessible from the user's desk with a single, uniform view. We've demonstrated that HP not only understands this environment, but has the technology, the programs and the products to deliver this vision today. Additionally, we also understand the fundamental needs users have had since the inception of computers. We've shown: o We have the largest array of applications available in the workstation industry today. o HP workstations are compatible with the customers' environment because of HP's strict adherence to the Open Systems philosophy. o We have the price/performance to be competitive, and are commiting to programs that will enable us to remain competitive. Not only that, we'll be delivering our systems with HP's legendary quality and support capabilities. o We have the right marketing and development efforts in place to ensure that customers' workstations can grow with them. We offer the strongest investment protection and growth path in the industry. With all of these strengths, we feel that HP is indeed the best choice in workstations today--and into the 90s.