OIL & GAS

Success of Sun HP Away Program Puts HP on Defensive -- Sun's HP Away program (a comprehensive migration program to Sun systems targeted at HP platforms) is having an affect on HP. Since its launch in July, Sun reached its first year target of migrating 40 HP customers to Sun platforms within 45 days. -- It was reported last week that HP is offering customers $25,000 to move off Sun platforms to HP Linux. However, HP's initiative appears to be no more than a PR campaign -- they are NOT offering customers $25,000 -- they are offering customers in America free assessment/migration services and the use of HP systems based on "standard" technology for 30 days. -- This offers appears to have little substance, no real money and no value proposition. -- HP's Enterprise Systems Division continues to lose money at an increasing rate and creating the illusion of buying business at $25,000 a pop is not going to help improve its bottom line. In addition, HP's focus today is clearly on PCs, printers and consumer products. -- HP's offer is exclusively to Linux which questions its commitment to HP-UX and Itanium-2, so its installed base should be very concerned. -- For those Sun customers wanting a Linux solution, Sun offers the same industry standard Linux OSes as HP, but at lower cost -- making it the most cost-effective Linux x86 solution available today. As a result, in the most recent market share numbers for the 4-way rack server space (all OS), Sun passed HP. -- Sun's HP Away is a substantial program with a real value proposition to solve the problems, issues, and headaches caused by HP abandoning its installed base," said Larry Singer, Sun's senior vice president, global market strategies. "This a last gasp effort by HP to show they are still serious about the enterprise, and not just a consumer products company." For more information about HP Away go to: http://www.sun.com/migration/