HP 2007 Annual Report Download - page 18

Technology Solutions Group (“TSG”). While TSG is not a business segment, this aggregation provides a supplementary view
of our business. In each of the past three fiscal years, industry standard servers, desktops, notebooks and printing supplies
each accounted for more than 10% of our consolidated net revenue.
A summary of our net revenue, earnings from operations and assets for our segments and business units is found in
Note 18 to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference. A discussion of
factors potentially affecting our operations is set forth in “Risk Factors” in Item 1A, which is incorporated herein by
reference.
Technology Solutions Group
TSG provides servers, storage, software and information technology (“IT”) services that enable enterprise and
midmarket business customers to better manage their current IT environments and transform IT into a business enabler. TSG
products help accelerate growth, minimize risk and reduce costs to optimize the business outcomes of customers’ IT
investments. Companies around the globe leverage HP’ s infrastructure solutions to deploy next generation data centers and
address business challenges ranging from compliance to business continuity. TSG’ s modular IT systems and services are
primarily standards-based and feature differentiated technologies in areas including power and cooling, unified management,
security, virtualization and automation. Each of the three business segments within TSG is described in detail below.
Enterprise Storage and Servers
The server market continues to shift towards standards-based architectures as proprietary hardware and operating
systems are replaced by industry standard server platforms that typically offer compelling price and performance advantages
by leveraging standards-based operating systems and microprocessor designs. At the same time, critical business functions
continue to demand scalability and reliability. By providing a broad portfolio of storage and server solutions, ESS aims to
optimize the combined product solutions required by different customers and provide solutions for a wide range of operating
environments, spanning both the enterprise and the SMB markets. ESS provides storage and server products in a number of
categories.
Industry Standard Servers. Industry standard servers include primarily entry-level and mid-range ProLiant servers,
which run primarily Windows®,(1) Linux and Novell operating systems and leverage Intel Corporation (“Intel”) and
Advanced Micro Devices (“AMD”) processors. The business spans a range of product lines that include pedestal-tower
servers, density-optimized rack servers and HP’ s BladeSystem family of server blades. In fiscal 2007, HP’ s industry standard
server business continued to lead the industry in terms of units shipped and factory revenue. HP also has a leadership position
in server blades, the fastest-growing segment of the market.
Business Critical Systems. Business Critical Systems include Itanium®(2)-based Integrity servers running on the HP-UX,
Windows®, Linux and OpenVMS operating systems, including the high-end Superdome servers and fault-tolerant Integrity
NonStop servers. Business Critical Systems also include the Reduced Instruction Set Computing (“RISC”)-based servers
with the HP 9000 line running on the HP-UX operating system, HP AlphaServers running on both Tru64 UNIX®(3) and
OpenVMS, and MIPs-based NonStop servers.
(1) Windows® is a registered trademark of Microsoft Corporation.
(2) Itanium® is a registered trademark of Intel Corporation.
(3) UNIX® is a registered trademark of The Open Group.
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