HP 2015 Annual Report Download - page 16

Table of Contents
extend our reach and augment our capabilities. Our competitive advantages include our deep technology expertise, especially in complex multi-country,
multi-vendor and/or multi-language environments, our differentiated intellectual property, our strong track record of collaboration with clients and partners,
and the combination of our expertise in infrastructure management with skilled global resources on platforms from SAP AG ("SAP"), Oracle and Microsoft,
among others.
 The markets in which our Software segment operates are characterized by rapidly changing customer requirements and technologies. We
design and develop enterprise IT management software in competition with IBM, CA Technologies, Inc., VMware, BMC Software, Inc. and others. Our big
data solutions, which include data analytics, information governance and digital marketing offerings incorporating both structured and unstructured data,
compete with products from companies like Adobe Systems Inc., IBM, EMC, Open Text Corporation, Oracle and Symantec Corporation. We also deliver
enterprise security/risk intelligence solutions that compete with products from EMC, IBM, Cisco and Intel. As customers are becoming increasingly
comfortable with newer delivery mechanisms such as SaaS, we are facing competition from smaller, less traditional competitors, particularly for customers
with smaller IT organizations. Our differentiation lies in the breadth and depth of our software, our collaboration with EG and ES to provide comprehensive
IT solutions and services portfolio and the scope of our market coverage.
 In our financing business, our competitors are captive financing companies, mainly IBM Global Financing, as well as banks
and other financial institutions in our financing business. We believe our competitive advantage in this business over banks and other financial institutions
is our ability to deliver flexible investment solutions and expertise that help customers and other partners create unique technology deployments based on
specific business needs.
For a discussion of risks attendant to these competitive factors, see "Risk Factors—We operate in an intensely competitive industry and competitive
pressures could harm our business and financial performance," in Item 1A, which is incorporated herein by reference.

Our operations are subject to regulation under various federal, state, local and foreign laws concerning the environment, including laws addressing the
discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, and the cleanup of contaminated sites. We
could incur substantial costs, including cleanup costs, fines and civil or criminal sanctions, and third-party damage or personal injury claims, if we were to
violate or become liable under environmental laws.
Many of our products are subject to various federal, state, local and foreign laws governing chemical substances in products and their safe use, including
laws regulating the manufacture and distribution of chemical substances and laws restricting the presence of certain substances in electronics products. Some
of our products also are, or may in the future be, subject to requirements applicable to their energy consumption. In addition, we face increasing complexity
in our product design and procurement operations as we adjust to new and future requirements relating to the chemical and materials composition of our
products, their safe use, and their energy efficiency, including requirements relating to climate change. We are also subject to legislation in an increasing
number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling,
treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). In the event our products become non-
compliant with these laws, our products could be restricted from entering certain jurisdictions and we could face other sanctions, including fines.
Our operations, and ultimately our products, are expected to become increasingly subject to federal, state, local and foreign laws, regulations and
international treaties relating to climate change.
14
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.