Compaq Intensifies Investment Program
to Inspire Enterprise Storage Innovation
HOUSTON, Dec. 11 /PRNewswire/ -- Compaq Computer Corporation
(NYSE: CPQ - news) today expanded its investment program to accelerate the development and
adoption of innovative storage hardware, software and utility provider solutions. Compaq will dedicate
$100 million dollars to its storage investment fund in 2001.
``Compaq's commitment of capital to storage companies demonstrates our vision for driving the
development and delivery of the Open SAN,'' said Howard Elias, Vice President and General Manager,
Enterprise Storage Group, Compaq Computer Corporation. ``Our investments will enable the realization
of enterprise storage solutions that satisfy customers' evolving business needs.''
Examples of Compaq storage investments during the past year include HighGround Systems, Inc.,
Nupremis, Inc., Prisa Networks and StorageNetworks, Inc. (Nasdaq: STOR - news). In addition to equity
investments, Compaq's strategic service provider partners -- including Acxiom Corporation, Data Return
Corporation (Nasdaq: DRTN - news), Digex Incorporated (Nasdaq: DIGX - news), Exodus
Communications, Inc. (Nasdaq: EXDS - news) and NaviSite, Inc. (Nasdaq: NAVI - news) -- are adding or
expanding managed hosting and storage services and utility offerings to their portfolios.
Additional companies will be selected for funding that share Compaq's strategic vision for storage
networking, create enabling technology, and offer the potential for financial return. Priority strategic
investments include innovative new technologies in hardware and software and service and solution
providers. Companies interested in potential investment may submit business plans for review to
SPGInvestments@compaq.com.
``Compaq's direct economic support should be sufficient incentive for the flourishing of many beneficial
network storage innovations,'' said David Hill, Research Director, Storage and Storage management,
Aberdeen Group. ``Compaq's innovative storage idea-promoting investment fund that complements the
open standards of its Enterprise Network Storage Architecture (ENSA) strategy is therefore welcome
news for many enterprises.''
Compaq Leadership in Storage Networking
Gartner recently designated Compaq an industry leader in its SAN Solutions Magic Quadrant,
recognizing Compaq for its completeness of vision and ability to execute. The Gartner report may be
accessed at www.gartner.com/webletter/compaqstorage/october/index.html
Compaq's Enterprise Network Storage Architecture (ENSA) strategy enables customers to efficiently
manage complex, mixed storage environments in an Open SAN.
Open SANs adhere to industry standards at all levels-servers, disk arrays, tape storage, and
switches-and can be managed with common tools. This open technology delivers the promise of an
integrated Storage Area Network because it allows any-to-any connectivity among servers and storage
systems, regardless of operating system or manufacturer.
Compaq's storage strategy supports its overall corporate commitment to delivering innovative solutions
across the enterprise that enables customers to achieve their business objectives.
Storage Market Environment
VentureWire reported more than $300 million in venture capital investment in the storage sector from
July 1999 through September 2000. Venture Capitalists expect increasing interest in storage, fueled by
the expansion of Net bandwidth.
The explosive growth of e-business rapidly increases the volume and complexity of data storage
management. Many companies now dedicate half their hardware investment to storage systems.
Storage capacity more than doubles each year and analysts expect the largest 2,500 companies
worldwide to spend more than $19 million each on storage by 2003 (Forrester Research).
Compaq is the world's leading storage systems supplier with 42 petabytes shipped in 1999 (IDC). More
information is available at www.compaq.com/storage.
About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing
systems in the world. Compaq designs, develops, manufactures and markets hardware, software,
solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant
business-critical solutions, and communications products, commercial desktop and portable products,
and consumer PCs.
Compaq products and services are sold in more than 200 countries directly to businesses, through a
network of authorized Compaq marketing partners, and directly to businesses and consumers through
Compaq's e-commerce Web site at compaq.com. Compaq markets its products and
services primarily to customers from the business, home, government, and education sectors.
Customer support and information about Compaq and its products and services are available at
compaq.com.
Compaq and the Compaq logo Registered U.S. Patent and Trademark Office. Product names mentioned
herein may be trademarks and/or registered trademarks of their respective companies. This press
release may contain forward-looking statements based on current expectations that involve a number of
risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ
materially include: component shortages, delays in the implementation of changes in delivery models,
increased competitive environment and pricing pressures, delays in product rollout schedules, slow
acceptance for new form factors, employee retention, disruptions related to restructuring actions, the
financial condition of resellers, delays in new systems implementation, operational inefficiencies related
to sales cycles, equity investment volatility, and emerging market political or economic instability.
Further information on the factors that could affect Compaq's financial results is included in Compaq's
Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K
and the report on Form 10Q.
SOURCE: Compaq Computer Corporation
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