Software George Kadifa Executive Vice President HP Software
Executive summary HP Software s strategy is to enable the New Style of IT FY13 focus on building strong leadership and improved execution Transitioning the business model to deliver sustainable growth Investing in strategic growth segments Increasing operating profit dollars and margins Continuing operational improvements and growth in Big Data, Cloud and Security 2
Well-positioned to address a large and growing market Total addressable enterprise software market with 8% CAGR, expected to grow to $69 billion by 2016 Software Total Addressable Market '13 '16 CAGR 2016 Market IT Operations Management +8% $25B Information Management +8% $22B Professional services +5% $9B Big Data analytics +36% $6B Enterprise security products +6% $4B Applications Delivery Management +7% $3B 3 Source: HP internal analysis
A well-positioned strategy for future growth Unique and differentiated products in growth markets IT Operations Management Applications Delivery Management HP Autonomy HP Vertica Security Business Service Management Service and Portfolio Management Cloud Automation Application Lifecycle Management Agile Manager Quality and Performance Testing HP Anywhere HP IDOL / Power Protect Promote Participate Preserve HP Vertica Analytics Platform Increasing leverage and integration across HP HP TippingPoint HP ArcSight HP Fortify 4
Powerful $4B enterprise software business Revenue profile Business group Revenue type Geography HP Vertica 1% Security 15% HP Autonomy 23% IT Operations Management 39% Applications Delivery Management 22% SaaS 8% Support & Maintenance 51% License 28% Professional Services 13% EMEA 32% APJ 12% AMS 56% 5 Disruptive market opportunities cloud, Big Data, security, mobility Q1- Q3 FY13 revenue of $2.8B Significant recurring revenue with large Support and SaaS streams Strong profitability Source: All figures based on FY13 Q1 - Q3 performance Global scale and reach Opportunity for more HP leverage
HP Software portfolio characteristics Different growth and profit dynamics Business group Strategic focus 100% Total Profitable growth 39% IT Operations Management Rejuvenate + grow 22% Applications Delivery Management Rejuvenate + grow 23% HP Autonomy Stabilize + expand 15% Security Accelerate 1% HP Vertica Disrupt + hypergrow 6
Ongoing improvements Creating an agile software operating model Continuing to build a strong leadership bench technical, business, sales, services Elevating the customer experience (SaaS, online, single view of entitlement, etc.) Unifying systems & processes across all business groups Unlocking resources by simplifying our infrastructure footprint Reinvigorating the channel, streamlining go-to-market and increasing productivity Evolving our products to meet future needs; driving innovation 7
HP Software innovation in action 174 patents filed from Q1- Q3 FY13 2.5 billion lines of code under Security SaaS subscription Leading infrastructure SaaS provider HP prevents 78 million intrusion attempts per month at one customer 11trillion+ rows of data in one bank s Vertica database 100,000 + physical & virtual servers managed with 1 pane of glass 60 petabytes of data archived in the Autonomy private cloud 5,000 + IT operations workflows supported out of the box by HP cloud & automation 8
HAVEn the industry-leading Big Data platform HAVEn Hadoop/ HDFS Autonomy IDOL Vertica Enterprise Security Scale Source Speed Secure n Apps Powering HP Software + your apps Transactional Social media Video Audio Email Texts Mobile data Documents IT/OT Search engine Images 9 hp.com/haven
HP Software powered by HAVEn Develop Mobile development Agile management Application Lifecycle Management Develop Operate Operate Service & Portfolio Management Cloud & Automation Business Service Management Monetize Web content management & optimization Intelligent contact center Customer interaction analytics Monetize HAVEn Govern Secure Secure Application security Security intelligence Network security Govern Archiving & compliance Data protection ediscovery Enterprise content management 10
HP addresses three major security weaknesses Harden the attack surface Reduce the vulnerability profile of enterprise applications with HP Fortify and strengthen network security with HP TippingPoint Improve risk remediation with Big Data Rapidly turn information into intelligence to more quickly see, find and stop known and unknown threats with HP ArcSight Proactively protect information Proactively find, understand and protect sensitive information across the enterprise with HP ArcSight, Autonomy and Atalla 11
Winning new customers 50,000+ customers, including 94% of the Fortune 100 12
Key takeaways We ve made a lot of progress since last year FY14 priorities are focused on positioning HP Software for long-term growth and profit expansion Provide to customers clear product differentiation and vision with disruptive technologies Focus is on sustainable growth and profit expansion Market and portfolio shifts are expected to pressure near-term revenue growth We have an attractive business model and significant long-term value creation and upside potential 13
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