HP 2009 Annual Report Download - page 11

Services, ESS and HP Software are reported collectively as a broader HP Enterprise Business (formerly
the Technology Solutions Group). While the HP Enterprise Business is not an operating segment, we
sometimes provide financial data aggregating the segments within it in order to provide a
supplementary view of our business. In each of the past three fiscal years, notebooks, desktops and
printing supplies each accounted for more than 10% of our consolidated net revenue. In fiscal 2009,
infrastructure technology outsourcing also accounted for more than 10% of our consolidated net
revenue, and in fiscal 2007 industry standard servers also accounted for more than 10% of our
consolidated net revenue.
A summary of our net revenue, earnings from operations and assets for our segments and business
units is found in Note 19 to the Consolidated Financial Statements in Item 8, which is incorporated
herein by reference. A discussion of factors potentially affecting our operations is set forth in ‘‘Risk
Factors’’ in Item 1A, which is incorporated herein by reference.
HP Enterprise Business
The HP Enterprise Business provides servers, storage, software and information technology (‘‘IT’’)
services that enable enterprise and midmarket business customers to better manage their current IT
environments and transform IT into a business enabler. HP Enterprise Business products and services
help accelerate growth, minimize risk and reduce costs to optimize the business value of customers’ IT
investments. Companies around the globe leverage HP’s infrastructure solutions to deploy next
generation data centers and address business challenges ranging from compliance to business
continuity. The HP Enterprise Business’s modular IT systems and services are primarily standards-
based and feature differentiated technologies in areas including power and cooling, unified
management, security, virtualization and automation. Each of the three financial reporting segments
within the HP Enterprise Business are described in detail below.
Services
Services, formerly HP Services, was renamed after the reorganization of the business units
subsequent to the acquisition of Electronic Data Systems Corporation (‘‘EDS’’) in August 2008.
Services provides consulting, outsourcing and technology services across infrastructure, applications and
business process domains. Services delivers to its clients by leveraging investments in consulting and
support professionals, infrastructure technology, applications, standardized methodologies, and global
supply and delivery. It is divided into four main business units: infrastructure technology outsourcing,
applications services, business process outsourcing and technology services.
Infrastructure Technology Outsourcing. Infrastructure technology outsourcing delivers
comprehensive services that streamline and optimize our clients’ infrastructure to efficiently enhance
performance, reduce costs, mitigate risk and enable business change. These services encompass the data
center and the workplace (desktop); network and communications; and security, compliance and
business continuity. We also offer a set of managed services, providing a cross-section of our broader
infrastructure services for smaller discrete engagements.
Application Services. Applications services help clients revitalize and manage their applications
assets through flexible, project-based, consulting services and longer-term outsourcing contracts. These
full lifecycle services encompass application development, testing, modernization, system integration,
maintenance and management. Applications projects open doors to new infrastructure technology
outsourcing and business process outsourcing opportunities and represent attractive cross-selling
opportunities to current HP clients.
Business Process Outsourcing. Business process outsourcing is powered by a platform of underlying
infrastructure technology, applications and standardized methodologies and is supplemented by IT
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