08 Q4 Hp Why Cdw

© 2006 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Why CDW

2 24 October 2008

CDW Overview• Founded in 1984

• IPO in 1993

• Privately acquired by Madison Dearborn PartnersLLC on 10.13.07

• $8.1 billion in annual sales−Forbes: Number 39 America’s Largest Private

Companies

−2008 America’s Most Admired Companies in the"Wholesaler: Electronics“ : FORTUNE

−Ziff Davis, CIO/INSIGHT-Vendor Value Study ratedCDW #1 in industry (HP was #6)

−2007: Ranked no. 343 on the FORTUNE 500

3 24 October 2008

CDW Net Sales & Net Income(in millions)

NASDAQ 100

Most Bang For The Buck; Most Revenuesper Dollars of Assets, No. 15

FORTUNE Magazine - 2005

Most Bang For The Buck; Most Revenuesper Employee, No. 45


Fortune 500, No. 343FORTUNE Magazine - 2007

Top 100 Best Companies towork for, No. 34


Total Return To Shareholders -Last Ten Years, No. 28


$8,145

$6,785

$6,292$5,738

$4,664$4,264

$3,961

$3,842

$2,561

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1999 2000 2001 2002 2003 2004 2005 2006 2007

$98

$162 $169$185

$175

$241

$272 $266

$0

$50

$100

$150

$200

$250

$300

1999 2000 2001 2002 2003 2004 2005 2006

4 24 October 2008

CDW Overview• Over 450,000 Active Customers

• 7 US call centers spanning 5 states-Arizonaopening June 1st

• 11 Regional Field Offices - associated withBerbee Acquisition

• 2,500 Account Managers-segmented bygeography & vertical, margin based comp

• 300 field representatives

• 400 field engineers

5 24 October 2008

Inside and Field Coverage• Inside Account Manager Team

− Responsible for the day-to-day interaction on the account

• Order processing

• Allocation and delivery

• Customer satisfaction

• Field Account Executive

− Management of over-all relationship drivers

• Executive Introductions

• Execution of Advanced Technology Deliverables

− Resource facilitator

• Project Manager

• OEM vendor involvement

• Strategic CDW technology resources

− Dedicated field resources

• Field Solution Engineers

• Field Strategic Software Executive

6 24 October 2008

CDW Go-to-Market

CDW Core

CDW & Berbee*

• Complex solutions integration

− Unified communications*

− Web hosting & managed services*

• On-site technical support required

• Operational excellence

• Cross-sell & Up-sell

• Speed, agility, ease of business

• Great selection, strong price performance

• Industry-standardsolutions

• Servers, Blades, SANS,racks, networking,software and telephony

• Attach coreservices

• 400 systemengineers atCDW

Trustedadvisor

Missioncritical

Transaction

* Berbee currently operating in MN, WI, IL, IN, MI, OH & KY

CDW & Berbee*

7 24 October 2008

Proven results with differentiation• CDW and CDW Berbee’s Streamlined Effort: Large Procurement Arm with a Local

VAR Flavor

• Gaming Company

− Challenge: Local gaming company expanding facilities was challenged with wireless design,consulting, and expertise needs.

− Solution: CDW Berbee was able to assess, plan, and design the wireless infrastructure withexpertise and professionalism.

− Results: CDW provided a single point for procurement, knowledge, and service expertise tobuild-out the warehouse extension quickly and correctly to exceed the customer’s expectations.

• Laboratory Firm

− Challenge: A Midwest laboratory firm has stretched IT resources to carry-out integration ofimmerging IT needs.

− Solution: CDW worked to align the right resources for blade installation, Exchange healthcheck, and a virtualization assessment.

− Results: CDW provided a single point for procurement, knowledge, and service to extendour customer’s IT resources with proven and capable expertise.

• CDW Services Beyond the Box

− Account and technology management and simplification

− Enterprise configuration

− Full solution teams (services)

− Special operations

− Asset Disposition

− Training

8 24 October 2008

Consultative Engineering Expertise

More than 800 Technical Experts

• 125+ Cisco Engineers

− 40 Cisco CCIE’s

− 70 Voice Engineers

− 8 IP Telephony Application Developers

− 30 Security Engineers

− 20 Wireless Engineers

• 130 Microsoft-Certified Engineers

− 30 IW Consultants

− 20 Project Managers

− 50 Core Infrastructure and UC Consultants

• CDW Berbee has successfully conducted:

− Over 700 IP communications implementations

− Over 500 Security assessments

Over 2,000 Microsoft projects

− Over 5 Petabytes of storage sold/implemented

− Over 12,000 “Open System” servers sold/implemented

− Over $1 billion eCommerce transactions through our data center

9 24 October 2008

CDW Value Add: System Engineers

Network Infrastructure

− Network Management, Layer 2-7 switching, Routers

Corporate Security

− Firewalls, VPN, AV, Content filtering, QoS

Power

− UPS (Single Phase and Three Phase), Generators and Power Audits

Storage Architecture

− Powerful relationships with EMC, HP, IBM, LeftHand, Hitachi

Document Management

− Document storing and sharing

Voice & Data

− Master Agent for 21 telecommunications carriers

Telephony

− VoIP and Std PBX

•800 technical experts to provide customized solutions in:

10 24 October 2008

Operational ExcellenceSingle source supplier option to minimize product acquisition costs

Vernon Hills, IL Distribution Center450,000 Square Feet

Las Vegas, NV Distribution Center513,000 Square Feet

• Expansive Physical Inventory

• $220 million in-house inventory

• 23-25 annualized inventory turns

• 100,000 products offered

• Buy and Hold capabilities

• $65-$75 million HP inventory daily

Powerful Logistics

• Accuracy – 99.7%

• Efficiency – 90% within 24 hours

• Quality Assurance – 3 QC Checks

• ISO: 9001:2000

11 24 October 2008

Secrets to Success• 49,000 sq ft configuration center (Two Locations)

• Buy and Hold

• Customer Specific Skus

• Asset Tagging & Online Management

• Custom On-site Imaging services

• Image maintenance and secure storage• Hardware and Software Configuration

• Rack Configuration Services

• Multi-site system deployment

• 24 to 48 hour system burn in

• Ability to customize quality assurance

• Networking Configuration

• 2,400 systems configured per day

• ISO 9001:2000 Certified

• Level 1, 24x7 tech support

• Powerful extranet• Customer specific pricing

• Purchase Authorization System (PAS)

• Quote to Order Conversion

• Enhanced Order Status Tracking

• Purchase History Reports (up to 3 years of past history)

• Advanced search and competitive compare

• Asset Tag/Serial Number Tracking

• Software License Tracking System

• Reporting by customer

• Cost plus pricing

12 24 October 2008

Why CDW is Growing•Culture has always been built around a superiorcustomer experience

•Responsive Coverage Model

•Business Partnerships

•Operational Excellence

•Diverse Product Selection

•Business Value and Volume Leverage

•Technical Expertise

•Flexible E-Commerce Solutions

13 24 October 2008

HP• CDW is HP’s largest partner in the world

• HP Revenue $2.1bil

• HP-IPG shipped over $510 million in 2007

• $65 million in HP inventory daily

• HP comprises nearly 30% of CDWs total revenue

• CDWG claims just under 35% of HPs total CDW revenue

• In 2007 CDW− Processed over 6M invoices

− Sold over 495,000 HP Desktops

− Sold over 250,000 HP Flat Panels

− Sold over 192,000 HP Notebooks

− Sold over 650,000 HP Printers

14 24 October 2008

CDW- HP Resources• 14 HP Dedicated Partner Business Managers

− IPG, PSG, ISS, SWD, Service, Procurve, etc

• 21 HP Certified CDW Presales Engineers− IPG: 2 generalist, 2 MFP Specialist, 1 Smart Print Service Specialist,

1 ink/scanner specialist

− PSG: 3 generalist, 1 Workstation Specialist

− ISS: 3 generalist and 1 Blade Specialist

− SWD: 4 generalist

− Care Pack: 2 generalist

• 5 Marketing Brand Managers

• 32 HP Certified Enterprise Storage Engineers

• [email protected]

15 24 October 2008

• EDI ordering for fast accurate sales credit

• CDW is optimized as an extension of HP SupplyChain

−Weekly forecasting in place with HP and CDW

• Desktops, Notebooks, and Printers

−Receives Direct Shipments from HP manufacturing

HP and CDW Supply Chain

16 24 October 2008

• Leverage CDWs relationships ([email protected])

• CDW’s wide customer base in the Midwest region

• CDW logistics: extensive inventory and industry leadingshipping time

• Customized configuration on IPG products: setting IPaddress to loading custom configuration for documentmanagement software with MFPs/scanners

• Co-Sponsor HP-CDW customer facing event in Chicago

• CDW’s field alignment, inside and field coverage

• Resources: 6 IPG Specialist− 2 MFP and Solutions Experts

− 1 Smart Printing Services Specialist

− 2 Generalists

− 1 Ink/Scanner Specialist

• 3 IPG Partner Business Managers

Why CDW and HP IPG?

17 24 October 2008

Everything we do

is to make YOUR customersexperience the best possible!

18 24 October 2008

Call-to-actionContact your CDW account manager today

and begin accelerating your revenue.