Innovation at WorkInnovation at WorkJörg Klingler

Managing Director Germany & Group Director CEE

InterSystems Vision

High Performance DatabaseHigh Performance DatabaseHigh Performance DatabaseHigh Performance Database

With Rapid Application DevelopmentWith Rapid Application DevelopmentWith Rapid Application DevelopmentWith Rapid Application Development

Innovation at Work

2005 Results2005 Results2005 Results2005 Results

Innovation and Market OpportunitiesInnovation and Market OpportunitiesInnovation and Market OpportunitiesInnovation and Market Opportunities

2005 Revenue by Type

64%

34%

License

Support

Rental

Overall revenueOverall revenuegrew 12%grew 12%

2005 Revenue by Product

88%

9%

3%

Caché

Open M

Ensemble

Ensemble grewEnsemble grewmore than 3xmore than 3x

2005 New License Revenue by Product

88%

4%

8%

Caché

Open M

Ensemble

68 Ensemble68 Ensemblecustomers incustomers in19 countries19 countries

2005 Revenue by Region

4%

70%

23%

3%

North America

EMEA

Latin America

Asia Pacific

Latin America hadLatin America hadthe fastest growththe fastest growth

Growth in Partners

• 123 New partners added in 2005123 New partners added in 2005

• Increased focus on larger partners with Increased focus on larger partners with installed baseinstalled base

• Investing to make it easier for them to moveInvesting to make it easier for them to move• Sybase (T-SQL)Sybase (T-SQL)• MultiValueMultiValue

Digital Technology

• Leading supplier of integrated software Leading supplier of integrated software solutions for the newspaper industrysolutions for the newspaper industry

• Migrating very sophisticated applications Migrating very sophisticated applications from Sybase to Caché (thousands of from Sybase to Caché (thousands of stored procedures)stored procedures)

• Production systems in U.S. and Europe Production systems in U.S. and Europe this yearthis year

Rhyme

• UK-based leader in solutions and UK-based leader in solutions and services for Asset Management industryservices for Asset Management industry

• Applications use Caché, MultiValue and Applications use Caché, MultiValue and other technologiesother technologies

• Moving Fiscal multi-currency multi-firm Moving Fiscal multi-currency multi-firm settlement system from UniVerse to settlement system from UniVerse to CachéCaché

Innovation at WorkInnovation at Work

Solutions Conundrum

0%

25%

50%

75%

100%

1985 2005

ServicesSoftwareHardware

Changing Landscape

“Almost every project that takes over a year to complete will have negative ROI.”

“Projects longer than a year claiming positive ROI usually show more creativity in accounting than in technology.”

New Market Opportunities

Connectable ApplicationsConnectable Applications

Demand for Connectable Applications

“Research firm IDC has identified corporate customers' top three criteria for selecting software vendors. They include "providing solutions that integrate and interoperate in the customer's environment." CIOs are increasingly turning to vendors with vertical-industry knowledge that can offer pre-integrated products that are interoperable with the current infrastructure.”

Building a “Totally Connected” Enterprise

• To other applicationsTo other applications

• To usersTo users

• To business processesTo business processes

• To customers, suppliers, partners, …To customers, suppliers, partners, …

Demands applications that are better connectedDemands applications that are better connected

Ensemble & Connectable Applications

• For EnterprisesFor Enterprises: The fastest and lowest risk path to : The fastest and lowest risk path to new functionalitynew functionality

• For Systems IntegratorsFor Systems Integrators: The power to rapidly : The power to rapidly assemble and reliably deliver high value-add assemble and reliably deliver high value-add solutions for projects of any size and scopesolutions for projects of any size and scope

• For Application PartnersFor Application Partners: The ideal way to create : The ideal way to create the connectable applications that enterprises want, the connectable applications that enterprises want, without rip-and-replacewithout rip-and-replace

Ensemble @ Motoman

WhoWho • Worldwide leader in industrial roboticsWorldwide leader in industrial robotics

WhatWhat • Use Ensemble adapters and process Use Ensemble adapters and process automation to orchestrate information flow automation to orchestrate information flow between robots and medical laboratory between robots and medical laboratory systemssystems

WhyWhy • Rapid entry into a new marketRapid entry into a new market• Win first key customerWin first key customer

Ensemble @ MIND CTI

WhoWho • $18M telecom applications supplier$18M telecom applications supplier

WhatWhat • Extend billing, mediation and customer care Extend billing, mediation and customer care applications with workflow and business applications with workflow and business process modelsprocess models

WhyWhy • Speed implementation and improve fit with Speed implementation and improve fit with unique customer requirementsunique customer requirements

Ensemble @ Maestro

WhoWho • Division of $3B financial services ISVDivision of $3B financial services ISV

WhatWhat • New composite applications to automate New composite applications to automate key multi-application business processeskey multi-application business processes

WhyWhy • Generate new and existing customer salesGenerate new and existing customer sales• Regain central position in customer’s viewRegain central position in customer’s view

New Market Opportunities

Connectable ApplicationsConnectable Applications

Software as a ServiceSoftware as a Service

Software as a Service

“The majority of software vendors will shift from upfront license revenue to longer-term subscription revenue business models by 2008.”

“There is no doubt that software as a service has become an undeniable force within the software industry.”

Software as a Service

• Converts periodic “big” purchases into steady Converts periodic “big” purchases into steady revenue streamsrevenue streams

• Attaches revenue to measurable customer results Attaches revenue to measurable customer results and benefitsand benefits

• Focuses customer attention on the functional Focuses customer attention on the functional richness of the solution and the quality of the servicerichness of the solution and the quality of the service

• Leverages the rapid development, efficiency and Leverages the rapid development, efficiency and scalability of Caché and Ensemblescalability of Caché and Ensemble

Caché @ MyLab

WhoWho • Lab IT leader in FinlandLab IT leader in Finland

WhatWhat • Transitioning from lab information Transitioning from lab information systemssystems to Web-based lab information to Web-based lab information servicesservices

• No more license fees, implementation No more license fees, implementation fees, …fees, …

WhyWhy • Improve efficiency and quality through Improve efficiency and quality through consolidationconsolidation

• Increase revenue and consistencyIncrease revenue and consistency

New Market Opportunities

Connectable ApplicationsConnectable Applications

Software as a ServiceSoftware as a Service

Regional / National Connectivity ProjectsRegional / National Connectivity Projects

NICTIZ

Example SI Partners

Working with leading systemsWorking with leading systemsintegrators to tackle projectsintegrators to tackle projects

of any size and scopeof any size and scope

Working with leading systemsWorking with leading systemsintegrators to tackle projectsintegrators to tackle projects

of any size and scopeof any size and scope

Leveraging Application Partners

Systems IntegratorSystems Integrator

EnsembleEnsemble

PartnerPartnerSolutionSolution

PartnerPartnerSolutionSolution

Partners applications arePartners applications areoften the key to majoroften the key to major

opportunitiesopportunities

Partners applications arePartners applications areoften the key to majoroften the key to major

opportunitiesopportunities

The Key to Success

Product excellenceProduct excellence

PartnershipsPartnerships

Innovation at WorkInnovation at WorkJörg Klingler

Managing Director Germany & Group Director CEE