HP 2009 Annual Report Download - page 160

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 19: Segment Information (Continued)
and run its business operations, which include, but are not limited to, customer base, homogeneity of
products and technology. The business segments disclosed in the accompanying Consolidated Financial
Statements are based on this organizational structure and information reviewed by HP’s management
to evaluate the business segment results. Services, ESS and HP Software are reported collectively as a
broader HP Enterprise Business. In order to provide a supplementary view of HP’s business,
aggregated financial data for the HP Enterprise Business is presented herein.
HP has reclassified segment operating results for fiscal 2008 and fiscal 2007 to conform to certain
fiscal 2009 organizational realignments. None of the changes impacts HP’s previously reported
consolidated net revenue, earnings from operations, net earnings or net earnings per share. Future
changes to this organizational structure may result in changes to the business segments disclosed. A
description of the types of products and services provided by each business segment follows.
HP Enterprise Business.
Each of the business segments within the HP Enterprise Business is described in detail below.
•Services, formerly HP Services, was renamed after the reorganization of the business units
subsequent to the acquisition of EDS in August 2008. Services provides consulting, outsourcing
and technology services across infrastructure, applications and business process domains. Services
is divided into four main business units: infrastructure technology outsourcing, applications
services, business process outsourcing and technology services. Infrastructure technology
outsourcing delivers comprehensive services that encompass the data center and the workplace
(desktop); network and communications; and security, compliance and business continuity. HP
also offers a set of managed services, providing a cross-section of its broader infrastructure
services for smaller discrete engagements. Applications services help clients revitalize and
manage their applications assets through flexible, project-based, consulting services and
longer-term outsourcing contracts. These full lifecycle services encompass application
development, testing, modernization, system integration, maintenance and management. Business
process outsourcing solutions include a broad array of enterprise shared services, customer
relationship management services, financial process management services and administrative
services. Technology services include consulting and support services, such as mission critical
services, converged infrastructure services, networking services, data center transformation
services and infrastructure services, as well as warranty support across HP’s product lines.
•Enterprise Storage and Servers provides storage and server products. The various server offerings
range from entry-level servers to high-end scalable servers, including Superdome 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, including pedestal-tower servers, density-optimized rack servers and HP’s
BladeSystem family of server blades. Business critical systems include Itanium↧(2)-based Integrity
servers running on HP-UX, Windows↧, Linux, OpenVMS and NonStop 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. HP’s StorageWorks
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