PALO ALTO, Calif., Nov. 17, 2003 – HP (NYSE:HPQ) and SAVVIS Communications (Nasdaq: SVVS) today announced a significant agreement that provides the first comprehensive media services platform to companies around the world that are creating and distributing digital content.
The two companies are combining their technologies, integration expertise, and managed services to create the platform, which addresses the entire workflow process, including digital content creation, management, archiving, distribution, video transport and transcoding (re-purposing video for multiple formats and audiences).
An extended ‘community’ of cooperating companies can share this single platform to collaborate more effectively, accelerate the workflow, and ultimately, speed time to market -- as well as revenue. HP and SAVVIS are targeting media companies such as broadcasters, film studios, music companies, news organizations, print publishers, advertising agencies and corporate brand and creative services companies.
The HP and SAVVIS Managed Media Services platform allows media companies to outsource this work – so they can focus on their core competencies. Moreover, HP and SAVVIS manage these services as an on-demand utility, so customers can purchase the services each month based on what they actually need and use.
The utility model demonstrates the business benefits envisioned by the HP Adaptive Enterprise strategy. With a utility-based approach to managed services, media companies can reduce capital investment in servers, storage and communications technologies such as virtual private networks. The on-demand utility approach also enables companies to control ongoing operating expense. More broadly, companies have greater flexibility to adapt to rapid changes in business volume.
“We are pleased to work with HP and SAVVIS to produce the first video-Internet screening process that integrates broadband transmissions and network solutions to deliver a worldwide and simultaneous judging system for the International Emmy competition,” said Georges Leclere, Executive Director of the International Academy of Television Arts & Sciences, producers of the International Emmy Awards and the iEMMYs Festival. “A compelling opportunity exists for Television services that streamline and integrate these complex processes and we look forward to the delivery of the end-to-end services HP and SAVVIS are bringing to market."
“Competitive pressures are driving media companies to streamline the way they push digital content to market,” said Ellen Julian, Vice President for Emerging Services Markets at IDC. “It appears that SAVVIS and HP have an attractive approach. Their shared workflow platform can help large groups of users expedite the entire process. Also, since the two companies provide the platform as a ‘pay-as-you-go’ managed utility, media companies can limit both initial and ongoing costs.“
The HP-SAVVIS managed utility is available to companies in EMEA (Europe, Middle East and Africa) and Asia-Pacific, as well as the Americas.
SAVVIS and HP Strengthen Leadership in Media Industry HP brings core competence in media solutions, including consulting and integration services, in all key phases of the digital content process: content creation, management, distribution, and finally, real-time delivery and final consumption by end users. Under the agreement, HP will provide the infrastructure for SAVVIS to manage global data centers that underpin the managed services, using HP standards-based servers, storage and related hardware and software.
“This is a breakthrough. HP and SAVVIS can significantly improve the way media companies bring digital content to market,” said Marco Limena, vice president, Network and Service Provider Solutions, HP Services. “With a streamlined, end-to-end workflow platform that can be shared within a large community, media companies can bring more digital content to market, in more formats, in less time, and at lower cost than ever before.”
SAVVIS provides an extensive Internet protocol) (IP)-based communications network that supports virtual private networks, hosting and applications services. Through the recent acquisition of WAM!NET’s commercial business, SAVVIS provides managed services to a large community of media companies that share workflow services for digital content production, management, and distribution, as well as enterprise networking, development and integration services. This community consists of approximately 9,000 users, including companies such as Universal Music Group, ABC News, Time Warner, Sony Pictures, and MSNBC, who are among the large media organizations already using this Media Services Platform.
In addition to the media industry, SAVVIS also provides managed workflow services to 4,700 financial institutions.
“HP and SAVVIS share the same business philosophy of providing outsourced services that help enterprises accelerate their workflow and manage their day-to-day operations more efficiently,” said Rob McCormick, chairman and chief executive officer, SAVVIS. “HP’s Adaptive Enterprise and SAVVIS’ utility services approach is enabling us to jointly bring to market a new set of services that will be embraced by enterprises with valuable media assets.”
The two companies plan to continue developing new services that will be added to the current platform.
For more information: http://www.hp.com/communications
SAVVIS Communications (NASDAQ: SVVS) is a leading Managed Services Provider that delivers private IP VPNs (virtual private networks), hosting, IP voice and application services to businesses. SAVVIS solutions are designed for industries with demanding IP requirements, including legal, media, retail, professional services, healthcare, manufacturing, and financial services. With its recent acquisition of the commercial business of WAM!NET, the company now delivers fully managed media services that enable organizations to share, collaborate, store and manage content with their partners and clients, and accelerate their workflows in the process.
SAVVIS was ranked #3 in IP VPN market share by IDC in its 2003 report, trailing only AT&T and MCI/WorldCom. Known as The Network that Powers Wall StreetSM, its network reliability was declared “perfect” in Network World magazine’s groundbreaking study of backbone performance. SAVVIS recently won the American Business Awards “Stevie”TM in the category of Best Customer Service Organization. SAVVIS’ managed hosting services were awarded the Service Provider Excellence Award by Boardwatch magazine for its virtualized approach to managed hosting, and the Market Engineering Award from Frost & Sullivan for product differentiation and innovation.
For more information about SAVVIS’ Intelligent IP NetworkSM and managed hosting solutions, visit: . For information about WAM!NET visit: www.wamnet.com.
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totaled $71.3 billion. More information about HP is available at www.hp.com.
This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Quarterly Report on Form 10-Q for the period ended July 31, 2003 and HP's other Securities and Exchange Commission reports filed after HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2002. HP assumes no obligation and does not intend to update these forward-looking statements.
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