Recent economic conditions forced us to re-evaluate many of our capital investments, including continued execution of our four-year refresh strategy. However, analysis showed that deferring server refresh until 2010 would increase operating and data center capacity costs by USD 19 million.

We are therefore continuing to execute our strategy to refresh aging servers in 2009 with new servers based on Intel® Xeon® processor 5500 series. When replacing older servers, we have found we can achieve consolidation ratios ranging from 7:1 to 13:1 depending on the workload and other factors, while substantially reducing energy consumption.