| INTERVIEW:Question 1Some executives in the IDC Forum think that the decade of the personal computer is almost
        finished, and that there will be new devices and new markets coming. Do you agree with
        this?
 AnswerWe think the personal computer is far from a dead market or a dead product category. We
        see that the computer has changed its personality over the years, and as we look forward
        we think that the PC will continue to evolve and develop and be a very powerful tool for
        communications as well as for traditional office applications. So we don't think the PC is
        dying. We think it's still very young and has plenty of life and opportunity ahead.
 
 Question 2Now the PC is 20 years old. It's not so young...
 AnswerIt's not the same PC; it has changed a great deal from its early stages, and today's PC
        technology includes a rich opportunity in terms of Internet access, new communication
        capability, new imaging opportunities. So I think to suggest that it's a 20-year-old
        device is really a mistake. In fact it has been reborn and has changed its personality
        many times.
 
 Question 3So you don't think that the browser or the Internet-based software will replace the
        operating system?
 AnswerThe Internet will be extremely important to PC technology and Internet access through
        browsers and other tools will be extremely important to create new life and new
        opportunities within the PC industry. But again, I don't see it as a replacement for the
        PC. I see it more as a change, a new personality and this concept of network computers
        will take many, many years to develop, and I think there are still many questions about
        whether the technological infrastructure exists to really create a viable network computer
        product category - at least over the next several years.
 
 Question 4The IDC forecast in its last report that in the home market for the PC there will be a
        great variety of devices. How do you imagine the next wave of computers at home?
 AnswerWe are excited about the concept of an information utility, which speaks for the fact that
        there will be very wide pervasive networks that will be as ubiquitous or as available as
        electricity is in homes. Because of that we do believe that in the home there will be many
        different forms of computers. There will probably be general purpose PCs for quite some
        time, but there's likely to be PC technology included in TVs and included in other
        entertainment communication appliances within the home. So there will be many different
        forms of computers in the home, just as today there are many different electric motors in
        the home that service the needs of many different appliances.
 
 Question 5For Hewlett Packard, what will be the most interesting business on the consumer market?
 AnswerWell, we have been active in the consumer market for PC-type products for some time, with
        our printer devices and also with PCs. We're excited about a couple of areas. Very soon we
        are hoping to make a major impact in the photography market. We think the combination of
        PCs, powerful software, the Internet and high quality inkjet printers will create new
        opportunities to provide customised photography that can be done within the home. That's
        something we'll see in the next year or two. Beyond that we also have the concept that we
        call the "information furnace", which is a device that will really concentrate
        much of the network access that exists in the home and really be used as a control point
        to manage information within the home environment. The information furnace is a device
        that's very simple and easy to use and that can bring in the sources of broadband video,
        voice, other forms of network content into the home and then that device will be used to
        distribute that information or that capability to the various parts of the home where it's
        needed. So the broadband capability would go into the room were people watch television,
        the voice where phones exist, other information to the PCs and so on.
 There will be various sources: phone companies, suppliers, it will come from cable
        companies; it may come from wireless satellite, a whole range of sources that need to be
        integrated and distributed throughout the home. We don't know when; this is something
        we're still working on. There's quite a bit of work that has to be done, and yet we
        believe it's an important vision of what can happen in the home over the next several
        years. 
 Question 6So it's a vision of networking. And what kind of other social applications can you
        imagine?
 AnswerWe can think of a lot of opportunities that this new information utility will create. I
        can give you one example in health care. As you know, health care is too expensive
        everywhere in the world, and the opportunity to provide more home-based health care
        through better information access, the ability to transmit information from individuals in
        the home regarding their health and to be able to communicate it and treat people for
        illnesses within the home is one example, a very radical change that could exist in the
        future. But it's also the case in entertainment, in a whole range of different
        applications, I think, that will grow out of this new information utility. And for
        education. People don't want to leave their homes; it's expensive, it's difficult to leave
        homes, and so I think that there will be new opportunities to reach people, to enrich
        people's lives and to be able to communicate more effectively through this new information
        utility.
 
 Question 7And how much is HP focused on the Intranet business?
 AnswerWe think intranets are extremely important. In fact, we are really integrating the concept
        and the technologies around intranets into our business around computing for commercial
        customers. We believe that the Internet and, therefore, intranets, really represent the
        next step in open systems, which is something we've been committed to for quite some time,
        and so, therefore, we are putting our arms around the Intranet and developing products and
        services to be able to allow businesses to use the Intranet to improve their productivity
        and to be able do serious computing on the Intranet, transaction processing, with security
        with good management, good performance - all the solutions that makes intranets a very
        powerful part of operating a business information technology system.
 
 Question 8Do you think that also in Europe companies and industry are coming onto the Web or is it
        more an American phenomenon?
 AnswerOh no, I think the Web is a world-wide phenomenon. I think it has different circumstances
        in different parts of the world. But I as we've seen in global technology like this, all
        parts of the world will adapt, but there are different issues in different parts of the
        world with telecommunications and regulations and access to technology. I think that will
        all become very compatible over the next several years.
 
 Question 9What do you think of electronic commerce? Will it be a real market over the coming years?
 AnswerElectronic commerce will be an increasingly important application. The Internet provides
        so much capability today to link people together to conduct commerce. All of the security,
        smart cards, authentication, all of these technologies are developing very rapidly, and so
        we have a very active program in helping companies develop commercial solutions on the
        Internet. In fact, we were involved with setting up the first Internet bank in the US
        using a lot of HP technology.
 
 Question 10So has HP already started in electronic commerce and offering its products on the Web?
 AnswerWe have a very active Web page; we do not sell products that I'm aware of over the
        Internet. We put a lot of information and content and use our Web page and our Web
        environment for reaching customers in a number of ways. We download software and drivers
        and provide information to them very, very actively. We have not been very active in
        commerce because we tend to want to work with our partners, our channel partners who, in
        fact, have Web pages to reach their customers, so we've not really approached that
        business until now, but that may change over time. I'm not really sure but that's been our
        focus up until this point.
 
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