(From the June 1993 Sales Guide, "Closing Business In the Second Half with the HP 3000) MM II Upgrade Program Who Is Eligible Worldwide HP 3000 customers with MM II modules who are upgrading from any MPE-V or pre-9x7 systems (S/920-958, S/925LX-949, and S/950-980) to the HP 3000 Series 9x7 and Corporate Business Systems. Purchase Agreement discounts are eligible. Situation Summary o Yes, MM II is active software. This family of manufacturing solutions (almost 20 integrated modules) has capabilities and breadth equal or superior to most competitive offerings. HP has no plans to discontinue sales or support of MM II products. o 10% of the HP 3000 installed base runs HP's MM II (second generation Manufacturing Management) software. Almost 70% of those installations are MPE-V systems. Second half upgrade opportunity from a list price basis is over $20 million. Program's success will be critically linked to how well customers understand HP's new, well-supported commitments to MM II. An absence of strong messages and commitment activity since 1990 has left some MM II customers unwilling to upgrade due to lack of confidence in HP's direction. They are looking for guidance and support from HP. Most MM II installations are satisfied with their software today, but need to understand HP's commitments to this product line: 1) HP will continue to offer MM II and will support and enhance it for as long as customers require support. 2) HP will help customers find complementary solutions to meet their critical business needs where gaps exist in MM II offerings (i.e. Logistics/Distribution, Customer Service, Human Resources). 3) HP will help customers to select competitive alternatives and will minimize their risk in the transition, if future business needs require them to replace portions of their HP MM II solutions or to add new non-MM II sites. A letter from HP management underscoring these strong commitments will be sent directly to MM II customers by early June. Upgrade Proposition POSITION AN UPGRADE TO MPE-iX TODAY AS A RATIONAL "BRIDGE MOVE" DECISION. CUSTOMERS CAN OPTIMIZE USE OF THEIR EXISTING MM II INVESTMENTS NOW WHILE RETAINING FREEDOM OF CHOICE FOR THE FUTURE. Customers cannot predict today what their mid- to late-1990's hardware and software platform needs might be. But an upgrade now to an HP 3000 Series 9x7 system works across a range of potential choices. Regardless of what paths their future will cover, customers can re-invest this year with confidence in MM II and the HP 3000. Upgrading under this program is advantageous whether accounts eventually decide: 1) To stay with MM II on this faster, more highly functional system (Performance Guarantees insure expected speed increases) 2) To move smoothly over time to other software solutions (selected Migration Partners and HP Consulting assistance insure ease of transitions), OR 3) To actually change hardware platforms to HP-UX (Open Insurance cross-grade programs allow hardware conversion and insure maximal investment protection) Program Description o Customers can take advantage of the System Upgrade Promotion for 10% discount off the purchase price of the HP 3000 Series 9x7 or Corporate Business System upgrade, ***OR*** take an equivalent amount in post-sales HP Consulting and Training assistance to implement the MPE-V to MPE-iX hardware/MM II software upgrade process (Combining a 5% promotional discount with an equivalent amount in PSO services is also acceptable). o 40% discount off all MM II application software uplift charges when the new system is in a higher price tier than existing system (except FA to FM migration). As usual, there NO CHARGE for MM II application software tier upgrades when new system is in the same or a lower price tier as existing hardware). Qualifying products are in the "HP 3000 Manufacturing Systems Application Software" section of the HP 3000 Price Guide (except FA to FM migration products). Call Walt Kerns at (415) 960-5686 with software eligibility questions. o NO CHARGE for a 90 days' FREE trial copy of TurboSTORE/iX with On-line Backup (as a demonstrated example of the benefits of MPE- iX functionality -- order part number B2492A) This program may be combined with the Multiple Trade-In Promotion and the DTC promotion. It CANNOT be combined with the Peripheral Trade-In promotion. All discounts are taken before the customer's Purchase Agreement discount is applied. Program Duration Promotion begins June 1, 1993 and ends October 31, 1993. Program will be pre-announced to attendees at the HP Manufacturing Products Users Group meeting in Colorado, May 17-19. Delivery Requirements Customer must be willing to accept delivery of their new system within six months of order date (no later than April 30, 1994). Sales Tools o EARLY MAY - ELECTRONIC INFORMATION PACKET: CSY Hotline, subject "MMpromo". Slide set and script on upgrade program rationale, plus Q&A, ordering examples, ROI spreadsheet. Will also be sent via HPDESK to HP Telesales and targeted HP 3000 sales reps. o LATE MAY - DIRECT MAILER: to 2000 MM II customer contacts (personalized commitment letter, oversized brochure detailing upgrade rationale, customer testimonials, and business advantages of current hardware and software). Will offer customers a customized PIP/ROI on upgrade investment. Promotional brochure will also be suitable for field use as leave-behind or fulfillment literature to explain upgrade program (p/n 5091- 7672E) o JUNE - "Why You Should Invest in the HP 3000" White Paper: Discusses reasons why Classic 3000s with MM II software should upgrade to MPE/iX (p.n 5091-7673E). o JUNE - RADIO NEWSTALK: field audio tape summarizing program and how to obtain further information. o JULY 7 - COMMERCIAL SYSTEMS UPDATE: video segment, to overview MM II upgrade opportunities and provide program rationale to SE audience.