C O N F I D E N T I A L © 2004 The MathWorks, Inc. The MathWorks Total Academic Headcount License Option This information is subject to change without.

C O N F I D E N T I A L

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The MathWorks Total Academic Headcount

License Option

This information is subject to change without notice and no part of this may be reproduced or distributed without the prior written consent of The MathWorks, Inc.

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Agenda

Company Overview License History / Background University of Minnesota - Current Account

Overview Total Academic Headcount License (TAH)

Overview Features Product Configurations Example Benefits

Discussion and Next Steps

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Company Overview

The MathWorks is the leading developer and supplier of technical computing software in the world

Headquartered in Natick, Massachusetts The MathWorks was founded in 1984 and employs over 1,000 people worldwide

Our customers are 1,000,000 of the world's leading technical people, in over 100 countries, on all seven continents

These technical people work at the world's most innovative technology companies, government research labs, financial institutions, and at more than 3,500 universities

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Background: Survey of Education customers identified four major areas for improvement regarding current license model for large installations

Budget & Cost Control-Order-Based discounting: Current order-based quantity discount structure complicates

customer planning; -High Cost to provide Student home use for Institute of Technology and College of Biological Sciences. -Many different licenses with varied purchase prices, renewal rates, and renewal dates.

License Administration-Combination of license options, types of use, and of products results in

complex license administration when centrally managed;-Currently process needed to distinguish between classroom and research use, local or network install, cannot install on student owned hardware.

Software Availability-Education customers who wish to coordinate license purchases centrally

advocate the introduction of an academic institution-wide license option;-Demand for non-network access for instructors and researchers in many schools and departments, both current and potential users.

-Technology Fee survey results indicate demand for use on student owned equipment.License Management

-Mission to standardize use compliance on campus;-Difficult to track the number and configuration of licenses, challenges keeping track of license inventory, uncertainty regarding classroom use vs. research use.

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License and Product History

Product Name CN GP IN Sub Total CN GP Sub Total TotalAerospace Blockset 20 0 0 20 0 0 0 20Bioinformatics Toolbox 17 0 2 19 0 0 0 19Communications Blockset 10 0 2 12 0 0 0 12Communications Toolbox 30 0 2 32 0 0 0 32Control System Toolbox 41 0 4 45 0 0 0 45Curve Fitting Toolbox 0 0 4 4 0 0 0 4Data Acquisition Toolbox 5 0 2 7 0 0 0 7Database Toolbox 2 0 1 3 0 0 0 3Excel Link 0 0 2 2 0 0 0 2Extended Symbolic Math Toolbox 2 0 2 4 0 0 0 4Filter Design Toolbox 25 0 0 25 0 0 0 25Financial Time Series Toolbox 0 0 1 1 0 0 0 1Financial Toolbox 1 0 2 3 0 0 0 3Fixed-Point Toolbox 1 0 1 2 0 0 0 2Fuzzy Logic Toolbox 0 0 1 1 0 0 0 1Image Acquisition Toolbox 1 0 2 3 0 0 0 3Image Processing Toolbox 35 2 10 47 0 0 0 47Mapping Toolbox 2 0 0 2 0 0 0 2MATLAB 307 2 34 343 50 50 100 443MATLAB Compiler 32 2 5 39 0 0 0 39MATLAB Web Server 4 0 0 4 0 0 0 4Model Predictive Control Toolbox 0 0 1 1 0 0 0 1Neural Network Toolbox 30 0 3 33 0 0 0 33Optimization Toolbox 35 0 15 50 0 50 50 100Partial Differential Equation Toolbox 10 0 3 13 0 0 0 13Real-Time Windows Target 2 0 0 2 0 0 0 2Real-Time Workshop 5 0 3 8 0 0 0 8RF Blockset 0 0 1 1 0 0 0 1RF Toolbox 0 0 1 1 0 0 0 1Robust Control Toolbox 23 0 1 24 0 0 0 24Signal Processing Blockset 25 0 3 28 0 0 0 28Signal Processing Toolbox 45 2 15 62 0 0 0 62Simulink 40 0 8 48 0 0 0 48Simulink Control Design 20 0 4 24 0 0 0 24

ACADEM CLSSRM

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Departments using MATLAB: Applied Economics Bioinformatics Brain Sciences Center Carlson School of

Management Center for Magnetic

Resonance Research Chemistry Civil Engineering Computer Science ECE Department Economics

Ecology, Evolution and Behavior

Institute of Child Development

Mathematics Mechanical

Engineering Neuroscience Operations &

Mgmt Science Otolaryngology Physical Med and

Rehabilitation Psychology Radiology

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TAH License Option - Overview Objectives:

• Increase availability of MathWorks products to faculty, staff, researchers and students;

• Reduce the administrative burden of license management.

Who will benefit from this program?Any college or university that wishes to:• Purchase and administer software centrally;• Provide access to MathWorks products to every

Faculty, Staff, Researcher and/ or Student at an academic institution;

• License software on an annual basis.

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TAH - Features Key license option features:

– Term: Annual– License Access: Both or either one of these options can be selected

• Campus Option: Academic institution-wide access on university-owned machines

o On- campus access for all faculty, staff, researchers and students (Graduate & Undergraduate)

o Classroom/lab installations are permittedo Standalone and network installation types are permittedo Faculty, staff & researchers are licensed for home/laptop useo Students are licensed for use in on-campus computing facilities only.

• Student Option: Students licensed on personally-owned machines

o Allows students access on their home/laptop computers

– Product configurations: • “Base” (i.e., minimum) configuration: MATLAB, Simulink• “Standard” (i.e., recommended) configuration: MATLAB + 13 products• Any other Product Add-ons

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TAH – Product Configurations

Base Configuration• MATLAB;• Simulink;

Standard ConfigurationBase Configuration plus:

• Signal Processing Toolbox; • Control System Toolbox; • Optimization Toolbox; • Statistics Toolbox; • Image Processing Toolbox; • Signal Processing Blockset; • Stateflow; • Data Acquisition Toolbox; • Instrument Control Toolbox; • Curve Fitting Toolbox; • SimMechanics; • Bioinformatics Toolbox

Why “Base” and “Standard” configurations?

• Base configuration represents our core product set.

• Standard configuration accounts for most highly-used products and new cutting-edge products

• Campus-wide Add-on tools available as needed.

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TAH – ”How do I count Relevant Population?”

Pricing is based on size of “relevant” population, defined as faculty, staff, researchers, graduate students and undergraduate students in:

Engineering Biological and Life Sciences Mathematics Physical Sciences Business & Economics

The preferred data source is IPEDS data reported to the National Center for Education Statistics (NCES), an organization to which US universities supply faculty, staff, researcher and student population data.

“The Integrated Postsecondary Education Data System (IPEDS), established as the core postsecondary education data collection program for NCES, is a system of surveys designed to collect required statistical data from all primary providers of postsecondary education.

Web site : http://nces.ed.gov/ipeds/

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TAH – “ How do I count Relevant Population?”

NOTE: While academic institution-wide PRICING is based on the size of the “relevant” population, ALL departments will have access to licensed MathWorks products.

For example: IF Professor Smith from the Art Department wants MATLAB;

AND The University has licensed MATLAB on an academic

institution-wide basis; THEN Professor Smith has the right to use MATLAB, even though

he is not a member of the Engineering, Math, Science or Business Departments.

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TAH: University of MinnesotaI PEDS CIP CODE/ ACADEMIC DISCIPLINE

14  26 27  40   51.xx ** 52 

Faculty, Staff and Researchers Engineering

Biological

Sciences & Life

Sciences Mathematics

Physical

Sciences Medicine **

Business

Management &

Administrative

Services

Full-time f aculty 222 227 116 152 695 162

Full-time prof essional (support & service) 116 228 9 100 818 85

Full-time technical and paraprof essionals 10 19 2 13 306 23

Part-time f aculty (instruction, research, public service) 20 12 6 6 116 12

Part-time instruction & research assistants 662 331 183 531 1261 173

Part-time other prof essionals (support & service) 23 38 30 23 209 92

Part-time technical and paraprof essionals 1 12 1 0 59 3

Students

Graduate Full-time students 477 347 156 218 1215 737

Graduate part-time students 1073 439 76 273 117 1809

Undergraduate Full-time Students 3484 1719 183 265 0 2004

Undergraduate Part-time Students 252 185 27 44 0 165

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TAH: University of Minnesota Campus Student

Option Option Total

• Base Configuration $64,077 $27,662 $91,738- Add-on Price $5,200 $2,200$7,400

• Standard Configuration $89,707 $38,726 $128,434- Add-on Price $3,500 $1,500$5,000

• Additional per product Add-on Pricing to Standard Configuration- Add-on 11-35 Products $1,800 $800 $2,600

- Add-on 36 or more products $900 $400 $1,300

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University of Minnesota Revenue History

2005 2004 2003 2002

Base Total 16311 11193 17432 17258

BaseNPS 10290 5450 10260 9650

Base Maint 6021 5743 7172 7608

Standard Total 9428 6813 8296 9006

Standard NPS 5920 4020 4300 5600

Standard Maint 3508 2793 3996 3406

All Other Total 7503 4440 8167 10736

All Other NPS 4100 1600 4000 7600

All Other Maint 3403 2840 4167 3136

Student Version 3400 4750 2500 2500

Total 36642 27196 36395 39500

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Add-on Revenue History

NPS SMS NPS SMS NPS SMS NPS SMS NPS SMS TotalAerospace Blockset 0 0 700 128 0 0 0 278 175 102 277Bioinformatics Toolbox 0 0 0 0 520 3 700 136 305 35 340Communications Blockset 0 258 0 358 0 120 0 358 0 274 274Communications Toolbox 200 380 0 555 0 120 0 555 50 403 453Control System Toolbox 200 690 400 1,023 200 273 180 969 245 739 984Curve Fitting Toolbox 600 0 200 60 200 90 400 120 350 67 417Data Acquisition Toolbox 200 65 600 216 320 115 180 375 325 193 518Database Toolbox 200 64 0 85 0 0 400 128 150 69 219Datafeed Toolbox 200 0 0 0 0 0 0 0 50 0 50Embedded Target for TI C6000 DSP 0 0 0 533 0 0 0 400 0 233 233Excel Link 0 170 0 163 0 80 0 80 0 123 123Extended Symbolic Math Toolbox 500 557 0 667 0 231 500 575 250 507 757Filter Design Toolbox 200 0 200 130 1,000 0 0 297 350 107 457Financial Time Series Toolbox 200 0 0 0 0 0 200 0 100 0 100Financial Toolbox 200 40 200 60 0 40 200 120 150 65 215Fixed-Point Toolbox 0 0 0 0 0 40 0 120 0 40 40Fuzzy Logic Toolbox 0 120 0 80 0 80 0 80 0 90 90Image Acquisition Toolbox 0 0 600 13 0 40 380 120 245 43 288Image Processing Toolbox 200 950 1,000 1,144 600 373 780 1,044 645 878 1,523Instrument Control Toolbox 0 40 200 40 0 40 0 40 50 40 90LMI Control Toolbox 0 190 0 279 0 0 0 0 0 117 117Mapping Toolbox 400 50 0 120 200 0 0 106 150 69 219MATLAB 9,450 8,417 16,380 9,784 8,700 4,369 9,250 9,742 10,945 8,078 19,023MATLAB C/C++ Graphics Library 200 67 0 0 0 0 0 0 50 17 67MATLAB C/C++ Math Library 200 227 0 0 0 0 0 0 50 57 107MATLAB Compiler 1,200 688 1,000 2,758 1,000 566 500 2,459 925 1,618 2,543MATLAB Report Generator 200 0 0 0 0 0 0 0 50 0 50MATLAB Web Server 500 215 860 430 0 0 0 687 340 333 673Model Predictive Control Toolbox 0 80 0 40 0 40 0 40 0 50 50Mu-Analysis and Synthesis Toolbox 0 382 0 627 0 40 0 0 0 262 262Neural Netw ork Toolbox 200 503 600 652 0 200 180 635 245 497 742Optimization Toolbox 800 909 600 1,233 1,000 515 1,600 1,110 1,000 942 1,942Partial Differential Equation Toolbox 200 314 200 372 0 94 600 372 250 288 538Real-Time Window s Target 0 0 0 0 600 0 0 120 150 30 180

Average2002 2003 2004 2005

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University of Minnesota TAH Scenarios Standard Student Option = $38,726

MATLAB, Simulink, and 12 add-on products for every Twin Cities student. Standard Campus and Standard Student Option =

$128,434 vs. an average of $40,000 yearly spend plus $87,000 yearly for ~1500+ incoming engineering and life sciences students.

Standard Campus Option + 11 Products, and Standard Student Option = $148,234 [Covers ~ 88% of average costs, 91% of seats] Communications Toolbox Robust Control ToolboxFilter Design Toolbox Spline ToolboxMATLAB Compiler System Identification ToolboxNeural Network Toolbox Wavelet ToolboxPartial Differential Equations xPC TargetReal Time Workshop

Standard Campus Option + 36 Products, and Standard Student Option = $160,834

19 Existing Products on SMS 17 New or Reinstated Products

* Add $1650 to each in estimated maintenance and NPS yearly for Symbolic Math and Extended Symbolic Math

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TAH: What are the Benefits?

Budget & Cost Control • Ability to offer a common set of tools to all technical and scientific

users for a set price;• Better value for the entire University vs. Student Group, at nearly

the same cost; • New Product Add-on Prices to TAH are capped and pro-rated to end

date of agreement; Simplified License Administration

• Unlicensed managed passcodes support all installation types, license options and platforms;

• No need to distinguish between classroom and research use, local or network installation, student or university owned hardware.

Improved Software Availability• Dramatically increase the availability of MathWorks software to all

faculty, staff, researchers and students;• Non-network access campus-wide in all departments• Higher satisfaction with the value of the Technology Fee

More Effective License Management• No need to track concurrent usage levels, user counts, or separate

classroom and research license pools. • One standard configuration campus wide.

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Next Steps:

Questions Timeline for implementation

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The other options for student home-use: Student Group for all ~5600 undergraduate

students in Institute of Technology & Bio and Life Sciences = $280,000

Student Group for ~3500 full time undergraduates in Institute of Technology = $189,000

Student Group all ~1500 estimated incoming freshman in Institute of Technology & Bio Life Sciences = $87,000

TAH Standard Student Option for all students University wide = $38,726

TAH Base Student Option for all students University wide = $27,662

Students purchase their own copies for $100 each at the bookstore or online.

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Student Group vs. TAH Student Option Student Group figures include only MATLAB,

Simulink and most of the functionality of Symbolic Math Toolbox.

No periodic updates / upgrades for Student Group. Does not provide for students outside of IT [and

Bio and Life Sciences]. TAH Standard Student Option includes 12 add-on

products. TAH provides for updates/upgrades as they

become available. TAH includes all students in all departments

enrolled on Twin Cities campus. ~$7 of technology fee dollars from Institute of

Technology & Biology & Life Sciences students completely funds TAH Standard Student Option. [$38,726 / 5640 students = $6.86 each]

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Other options for Local Access

Group license to provide node-locked stand-alone access to MATLAB

Pool of Individual Named-User licenses to provide greater flexibility in stand-alone access.

In both cases, discounts are offered based on the number of seats purchased at one time.