HP announced record-setting Linux-based revenue in excess of $2.5 billion for its fiscal year 2003 as well as additions to its Linux portfolio, including industry-standard desktop PCs and notebooks running Linux.

"2003 was a banner year for Linux at HP – our Linux services and solutions business grew at 40 percent, we became the first major Linux vendor to initiate a Linux Indemnity program for customers, we are working with many new enterprise customers and we made over $2.5 billion in revenue for the year," said Martin Fink, vice president, Linux, HP. "We have established HP as one of the world's preeminent Linux vendors and we anticipate continued growth in 2004, led by our dedication to meeting customer needs, industry-standard Linux platform leadership, a broad services portfolio, and innovation such as Linux on notebooks and desktops."(1)

According to IDC's "Q3 '03 Quarterly Server Tracker," HP held the No. 1 position in the rapidly expanding Linux server market in the third quarter of 2003 with 28.1 percent of Linux server factory revenue worldwide. During the same period, HP ProLiant servers also led the market for Linux x86/IA-32 server unit shipments with 27.4 percent of worldwide market share, and HP Itanium-based (EPIC-based) Linux servers led the market for EPIC-based Linux server unit shipments with 66.7 percent of worldwide market share. The size of the Linux server market for this period was $743 million in revenue.(2)

"Linux server revenues and unit shipments have been accelerating in recent quarters, with 49.8 percent revenue growth for Linux servers in Q303, compared to Q302," said Jean S. Bozman, research vice president, IDC's worldwide server group. "The key drivers for this acceleration, we believe, are widespread acceptance of Linux servers for many Web-centric applications, a growing use for file/print and other IT infrastructure workloads, and increasing use of Linux servers for high- performance computing workloads, for custom applications and for packaged ISV applications. HP remains a key player in a highly competitive marketplace."

HP unveiled several new Linux reference architectures, including commercial Linux reference architectures based on Oracle Database/9iRAC and BEA WebLogic Server and an open source reference infrastructure architecture based on open- source software from MySQL, JBoss, Apache and OpenLDAP.

The Linux reference architectures are being deployed on industry-standard HP ProLiant servers, to be followed by deployment on HP Integrity servers. These solutions are tailored to enterprise customers migrating from Solaris, AIX and Tru64 to save them time and money.

The solutions help mitigate business risk for customers and improve the support for mission-critical deployments. HP is the first major Linux vendor to offer these types of commercial applications not from a proprietary, single- source; the solutions were created by integrating applications based on open source software and the systems expertise of HP.

(1) This release is not an offer of indemnity. Eligibility for qualifying customers only. The indemnity program requires customers to sign an indemnity agreement that outlines the covered claims, rights and responsibilities of HP and customers. More details are available at www.hp.com/linux. HP reserves the right to modify or cancel the indemnity program at any time.

(2) IDC Worldwide Quarterly Server Tracker August 2003, based on factory revenue.

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