January 8, 2010

Public SectorBuilding on some great opportunities

2010Michael Humke

Hard Times in a Good MarketOperational challenges…• Personnel reductions• Unfilled positions• Cuts to revenue streams• Less funding with greater

expectationsare driving…• Cross jurisdictional initiatives• Collaboration• Consolidation/Centralization• Innovation• Data system standardization

2010 SLG Total IT Budget

$ 92.5 BillionVertical 2010

Health & Human Services $ 22.5 B

Transportation $9.6 B

Finance & Admin $8.1 B

Criminal Justice/HS $7.1 B

Federal Government Funding Streams

Federal Issues with Greatest Impact to States

•Stimulus and Economic Recovery•Education Reform•Health Information Technology•National Broadband•Smart Grids•Transportation Systems•Data Standards and Interoperability•Cyber Security•Open Government and Data Platforms

Health and Human Services

Transportation

Housing and Urban Development

Education

Agriculture

Homeland Security

Labor

Justice

Interior

Top 10 Federal Departments(Aid to States)

Top Ten StatesNew York 5.2BCalifornia 4.7BTexas 3.5BFlorida 2.6BPennsylvania 2.4BOhio 2.3BIllinois 2.1BN. Carolina 1.8BMichigan 1.7BGeorgia 1.5B

Top CountiesLos Angeles 455MMiami-Dade

144MClark

129MOrange

109MFairfax

105MRiverside 100MKing 100MSan Diego 94MMontgomery

87MSacramento86M

Top CitiesNew York City 1.2BWashington DC

206MPhiladelphia 147MLos Angeles 140MSan Francisco

131MChicago 130MHouston 81MSeattle 79MPhoenix 73MDetroit 73M

2009-2010IT Budgets – The Top 10s

Great opportunityHealthcare

$10B

Market Opportunity

$32B

Total Stimulus Funding for EMR / EHR adaption – 30% adoption

today

6k+

Hospitals in the United

States

900k

Practicing Physicians

in the United States

Sustainable Budget

Student Experience

Education TECHNOLOGY INITIATIVES

Technology Planning

Staff Development

Lifecycle Support

Stakeholder Buy-In

Segment the Market

K-12 Higher EducationThe U.S. Education market is large, complex, and continues to become more challenging as it grows.

• The education system today has evolved into multi-billion dollar industry.

• Total IT spending in K-12 and Higher Education was projected to top $19.7 billion in 2009-10:

-K-12 estimated $9.4 billion-Higher Education $10.3 b

$19.7 BILLION in IT SPEND

K-12 Higher Education0

2

4

6

8

10

12

14

$9.4 Billion $10.3 Billion

2010 Estimated IT Spend

Estimated IT Spend

Source: Center for Digital Education (2010)

Why education

"We'll provide new computers, new technology, and new training for teachers so that students in Chicago and Boston can compete with kids in Beijing for the high tech, high-wage jobs of the future.“Barack Obama January 2010

Schools Face Tough Challenges…• Skills graduates need are changing• Reading, writing, and arithmetic are no longer enough • Critical thinking, teamwork / collaboration, creativity and IT application

required• PCs are an enabler, but many schools face barriers– Struggle to make PCs widely available– Challenged with teaching differently• 1:1 Computing Manageability

Engaging digital natives

Information delivery

Isolated work

Single media

Teacher-centered instruction

PreferredTraditional

Artificial context

Information exchange

Collaborative work

Multimedia

Student-centered learning

Authentic, real world context

Perfect Storm

• Why Education? Why Now?– The Stimulus is heavily focused on education

• Over $100 billion into education including:– $650 million for education technologies– $250 million for statewide student information systems– $4.35 billion for Race to the Top (includes an information system component)

– The President is calling for significant reforms to education• Data-driven decision-making

– Online learning• Expanding reach beyond brick and mortar• Digital textbooks initiatives on the rise

– Massive push for professional development and 21st century classrooms

What Are They Buying?

Source: CDE 2009Includes K-12 E-Rates

19%

17%

34%

31%

Building on the Education Eco System

© 2008 Hewlett-Packard Development Company, L.P. The information contained

here in is subject to change without notice 13

Studen

t

– Digital Classroom

– New learning solutions

– Gaming

– Publishers connectivity

– Learning Tools

– Collaboration Solutions

– Learning Community

– Mobile

– Learning tools

– Security

– Infrastructure

– Mobile Learning

– Cloud Solutions

– Learning Community

Classroom

Community

Admin

Parents

Student

We have an opportunity to put all the pieces together HW Solutions Support needs Customers for life

Focused on addressing a key trends

Focus

DIGITAL TRANSFORMATION CLOUD COMPUTING SUSTAINABILITY

GOVERNMENT

HEALTHCARE

EDUCATION

©2009 HP Confidential16

Harnessing Information Challenges

• Explosive growth– Unstructured—62%– Structured—38%– Storage 6x by 2013

• Knowledge workers spend 24% of time looking for information

©2010 HP Confidential17 ©2010 HP Confidential17

Partner Commitment

Hp Vertical Specialists Sales Team

Partner Recruiting

ISV Partner Alignment

BU Alignment

Market Coverage

Solution Development

Partner Alignment

PSG

EB

Awareness

IPG

Physicians

Teachers

Students

Parents

Solution Providers

3rd Party Partners

Hospitals

Clinics

Schools

AgenciesTotal Market Focus

HP Brand Across the

MarketAcross the

partnercommunity

Patient’s Room24hrs Pharmacy Labs (Blood Work)

Treatment Room

Radiology/MRIDoctor’s OfficePoint-of-Care

RegistrationEMR Server Control

PA

NY

NH

VT

ME

MA

RI

NJ

DE

DC

AL

GA

FL

SC

NC

VA

TN

MD

AK

HI

TX

LA

AROK

KS

NE

SD

ND

MN

IA

MO

WV

KY

IL IN

WI

MI

OH

MS

WPA

WA

OR

MT

ID

UT

NV

CA

AZ

NM

CO

WY

CT

PSG Regional Coverage

HP Confidential

Drive growth in untapped market segmentsHealthcare, Education and Retail

Grow market share by aggressively targeting competition

using a co-selling model

Improve sales predictability across all business units

Maximize the value of partnerships to sell the portfolio

Deliver “best in class” partner experience

Channel Priorities

Loyal Customers, Higher Market Share, Trusted Advisor

Our Client Strategy

IT Tools

Funding & Sustainable Budget

Teaching & Achievement Usage Experience

Products and Solutions Optimized for Education

Partner Resources

• Public Sector Expressway – www.hp.com/partners/PublicSector•Education specific events, solutions, Public Sector programs, success stories, promotions and more!

• HP Partner Portal – www.hp.com/partners/us•PartnerONE programs, marketing toolkit, products, and pricing

©2009 HP Confidential22

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Questions