Progress Analyst Briefing Joseph Alsop Co-Founder & Chief Executive Officer Charles Hotel, Cambridge February 7, 2007
Progress Analyst Briefing
Joseph AlsopCo-Founder & Chief Executive Officer
Charles Hotel, CambridgeFebruary 7, 2007
© 2007 Progress Software Corporation2
Progress Software CorporationForward Looking Statements
Various remarks that we may make about the Company’s future expectations, plans and prospects constitute forward looking-statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company's most recent Form 10-K and Form 10-Q which are on file with the SEC. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
© 2007 Progress Software Corporation3
Progress understands the infrastructure requirements for great business applications
One Constant:
Progress Software Corporation
Application Infrastructure SoftwareDevelop, Deploy, Integrate and Manage Business Applications
Host-centric Client-Server Web SOA
Through the evolution of IT Paradigms:
© 2007 Progress Software Corporation4
that empower our partnersand customers
to dramatically improve their development,
deployment, integration and management of quality applications worldwide.
Progress SoftwareOur Mission
To deliver superior software products and services
© 2007 Progress Software Corporation5
Progress SoftwareMarket Presence
… in over 135 countries … in over 135 countries
…including over 80% of the Fortune 100…including over 80% of the Fortune 100
… at over 60,000 organizations … at over 60,000 organizations
… deployed at over 100,000 sites… deployed at over 100,000 sites
… with over 2000 Application Partners… with over 2000 Application Partners… offering over 5000 applications… offering over 5000 applications
… and over 5 million users … and over 5 million users
Application Development, Deployment, Integration and Management Products…
© 2007 Progress Software Corporation6
Progress SoftwareSuperior Products Across All Product Lines
Application Platforms
Services Infrastructure
Data Infrastructure
Develop, Deploy and ManageBusiness Applications
Connect, Mediate, Control and MonitorServices
Manage, Integrate, Replicate, Cacheand Access Data
© 2007 Progress Software Corporation7
Application Platforms
Data Infrastructure
Services Infrastructure
Application Platforms
Services Infrastructure
Data Infrastructure
Develop, Deploy and ManageBusiness Applications
Connect, Mediate, Control and MonitorServices
Manage, Integrate, Replicate, Cacheand Access Data
Progress SoftwareSuperior Products Across All Product Lines
© 2007 Progress Software Corporation8
DataXtend Data Integration
EasyAsk Natural Language Search and Query
DataDirect Data Connectivity
ObjectStore
OpenEdgeApama
ActionalShadow
Sonic
Object Data Management
Business Application Platform
Event Processing
Enterprise Service Bus
SOA & Web Services Management
Mainframe Integration
Application Platforms
Data Infrastructure
Services Infrastructure
First model-driven semantic data integration
First unified mainframe integration platform
Market leading ESB
Market leading event processing platform
First and leading natural language query
Market leader in data connectivity
Integrated platform optimized for business
Leading enterprise-class SOA management
Market leading object database
Progress SoftwareSuperior Products Across All Product Lines
© 2007 Progress Software Corporation9
Product SoftwareAcquisitions Accelerate Product Innovation
“Progress adds a formidable weapon to its mainframe arsenal… [with Shadow]”Forrester Research, Inc., Jan. 2006
“Progress will gain key Web services management functionality with Actional…”Gartner Inc., Jan. 2006
“The Pantero (DataXtend Semantic Integrator) technology should be the cornerstone of your data integration vision...” Gartner Inc., Oct. 2006
Provides DataDirect with software toolkits, run-time components, support, and services for enabling universal SQL access to application data. Nov. 2006
© 2007 Progress Software Corporation10
OpenEdge 10.1A Actional SOAPstation 6.1 DataDirect XQuery 2.0
Actional Looking Glass Server 6.1 Apama 2.4
EasyAsk 9.5
EasyAsk 9.6
Progress SoftwareNew Product Releases
DataXtend RE 8.0
EasyAsk 9.5.1
EasyAsk 9.6.1
Apama EBS Adapters 2.4.0
DataXtend Enterprise
DataXtend Studio
Sonic ESB 7.0
OpenEdge Management 3.1A
OpenEdge Replication 10.1A
Sonic Workbench 7.0
SonicMQ 7.0
Sonic Event Monitor 7.0
Sonic Orchestration Server 7.0
Sonic XML Server 7.0
Sonic Database Service 7.0
Actional Looking Glass Server 6.0
Actional SOAPstation 6.0
Actional Ghost Agent 6.0
Actional Ghost Agent 6.1DataDirect Connect for ADO.NET 3.0
DataDirect Connect for ODBC 5.2
DataDirect Connect64 for ODBC 5.2
DataDirect Connect for JDBC 3.6
DataDirect Shadow RTE 6.1.3
© 2007 Progress Software Corporation11
Recognition forOur Products
ApamaEvent Processing Platform Market Leader
OpenEdge40% Savings vs. Alternative Platforms
Sonic ESB#1 Worldwide for ESB Segment
ApamaWinner ’06 Buy-Side Innovation
Sonic ESBBest Enterprise Service Bus
ActionalSOA & Web Services Management Leader
© 2007 Progress Software Corporation12
Recognition for Customer and Partner Success
Lillian Vernon…eTail Award for Excellence in Site Search
Collins Stewart Tullet…Best Straight Through Processing Deployment
Boekhandels Groep Nederland…RFID Visionary Award
BGN ● Volvo…2006 InfoWorld Top 100 IT Projects
Suzanne Peck, City of Washington, DC Roland Whitehead, Bonhams
…InfoWorld CTO 25 List
Epicor ● Integrated Warehousing Solutions… Technology Enabler & Innovation Awards
© 2007 Progress Software Corporation13
Recognition forProducts, Strategy and Performance
“With a diverse, yet complementary portfolio…Progress Software helps organizations create
powerful business applications that respond to changing business and IT conditions…”
Progress Software Earns Third Consecutive Five-Star Rating
from VARBusiness Magazine
Progress Software Named to Forbes 200 Best Small Companies List
for Second Consecutive Year
© 2007 Progress Software Corporation14
Progress SoftwareProduct Line Growth Strategy
$447M
% RevenueFY06
% Revenue
OpenEdge 98% Sonic 2%
OpenEdge 71%DataDirect 14%
$264 M
FY01
Enterprise 15%Infrastructure
© 2007 Progress Software Corporation15
Progress SoftwareCustomers Presenting Today
Ameriquest Mortgage Company
Boekhandels Groep Nederland
H G Trading
Ken SchuelkeVice President
Enterprise Architecture
Matthijs van der LelyChief Executive Officer
The Seattle TimesJohn Saum
Architecture & Design ManagerInformation Technology
Lou MorganManaging Director
© 2007 Progress Software Corporation16
Progress Product Portfolio 2007: Delivering Customer Value Now
Jeffrey StamenSenior Vice President
Corporate Development and Strategy
© 2007 Progress Software Corporation18
Progress understands the infrastructure requirements for great business applications
One Constant:
Progress Software Corporation
Application Infrastructure SoftwareDevelop, Deploy, Integrate and Manage Business Applications
Host-centric Client-Server Web SOA
Through the evolution of IT Paradigms:
© 2007 Progress Software Corporation19
Service-Oriented Architecture (SOA)
A service-oriented architecture is a collection of services that communicate with each other. The services are self-contained, can be distributed, use standards-based interfaces, and are application building blocks.
What is SOA?
© 2007 Progress Software Corporation20
SOA Business Advantages
Agility: Respond faster to changing business needs
Integration: Eliminate boundaries between business functions and integrate value chain
Operational Intelligence: Understand and respond to events as they happen
Cost Reduction: Share services broadly
© 2007 Progress Software Corporation21
SOA: A New Platform?
No - SOA is not a new “platform”“SOA platform” is an oxymoron
SOA
…the nature of SOA is cross-platform
Mainframe.NETJ2EEOpenEdge
A heterogeneous IT world requires existing systems to interoperate.
© 2007 Progress Software Corporation22
…these SOA challenges play to Progress’ strengths
Key SOA Challenges
1
2 Managing services in a heterogeneous worldrequires a truly distributed approach
3 Building and deploying services requires high productivity tools for rapid creation and composition
4 Operational intelligence requires monitoring andacting on events in real time
SOA interoperability requires connection andsemantic alignment – for both services and data
SOAMainframe.NETJ2EEOpenEdge
© 2007 Progress Software Corporation23
Services InteroperabilitySonic ESB connects distributed, heterogeneous services securely and reliablySonic ESB mediation aligns services supporting all interaction models and standards
Data InteroperabilityDataDirect drivers connect across all databases, and XQuery spans relational and XML dataDataXtend Semantic Integrator aligns data through model-based transformations
1 SOA interoperability requires connection andsemantic alignment – for both services and data
Meeting the SOA Challenge:Interoperability
© 2007 Progress Software Corporation24
Meeting the SOA Challenge:Management
Actional SOA management• Monitoring ensures the performance and
availability across the entire SOA environment• Active policy enforcement ensures compliance
with security and regulatory policies• Business process visibility enables dynamic
optimization in a business context• SOA management is required no matter how
small the project
2 Managing services in a heterogeneous worldrequires a truly distributed approach
© 2007 Progress Software Corporation25
Meeting the SOA Challenge:Building and Deploying Services
OpenEdge for full business service development and delivery• Most productive development environment• Lowest TCO on deployment• Full support for Web standards and Sonic ESB
Sonic ESB for the creation and deployment of integration servicesShadow for service and event interfaces to mainframe systems
Building and deploying services requires high productivity tools for rapid creation and composition
3
© 2007 Progress Software Corporation26
Meeting the SOA Challenge:Operational Intelligence
Apama Event Processing• Infrastructure to monitor, analyze, and act on
events with low latency • The first and most proven Complex Event
Processing (CEP) engine for real-time applications• Business Activity Monitoring (BAM) dashboards
provide real-time visibility into operational events• All through a high-level application development
framework
Operational intelligence requires monitoring andacting on events in real time
4
© 2007 Progress Software Corporation27
Progress – from SOA Vision to SOA Results
There is no SOA “big bang” - incremental adoption is the only practical approach
Progress: A practical approach to SOA • Project by project development utilizing “SOA
foundational technologies” and best practices• Start with a “business change project” and
show immediate value• Incrementally add other business change
projects
© 2007 Progress Software Corporation28
Business Change Projects
Driven by urgent business needs such as• Changes in marketing strategy• Mergers and acquisitions• Regulatory requirements• Breaking down functional silos• Creating an E-value chain
Limited impact on existing core IT systemsWith measurable and near term ROI
© 2007 Progress Software Corporation29
Real World Business Change Projects
EasyAsk Lillian Vernon created a virtual store, “Lilly’s Kids”, resulting in a significant increase in on-line purchases of kids clothes
SonicNewcastle City Council (UK) integrated disparate applications and customer service portals to offer better citizen access to city services - in 20 days
Apama Deutsche Bank quickly adds new asset classes to algorithmic trading business improving revenue and competitiveness
ActionalStarwood Hotels optimized their reservation system to deliver the best service to the business channels that generate the most revenue
Shadow Avon uses Shadow to transform mainframe screen based process into Web services to support their global business
OpenEdge Australia Post automates retail operations in over 7000 post offices using OpenEdge 10 Web services
© 2007 Progress Software Corporation30
Every project utilizing Progress SOA foundational-technologies supports a long-term enterprise SOA strategy
All Progress products provide enterprise-wide scalability and reliability
Results for Customers: A dramatic increase in the business benefit as SOA projects scale – the compound value of SOA
Results for Progress: An incremental way to achieve critical mass in an account
Progress Provides Long-Term SOA Value
© 2007 Progress Software Corporation31
SOA Supports SaaS
Applications outsourced and accessed over the WebSaaS is growing at over 20% CAGR - three times the rate of traditional enterprise software licensesSOA is the best foundation for SaaS
SaaS – Software as a Service
OpenEdge for SaaS application development and deployment with supporting business modelActional SOA management provides for quality-of-service and security – critical factors for SaaSSonic ESB provides integration for the SaaS provider
The Progress Difference for SaaS
© 2007 Progress Software Corporation32
The Progress Product Portfolio
DataDirect
ActionalSOA
Management
ApamaEvent
Processing
OpenEdge SQLServerOracleStructured &
UnstructuredDB2 & Other
Sonic Enterprise Service Bus
Shadow.NETJ2EEEasyAskOpenEdge
Best-in-class, robust SOA-foundational products provide value alone or in combination
DataXtend SI
© 2007 Progress Software Corporation33
Progress Software – Customer Value Now!
Best-in-class, purpose-built products
The most heterogeneous-friendly products
Products that allow an incremental approach to SOA
Products that don’t require a whole platform purchase
A great track record of success, which few can claim
© 2007 Progress Software Corporation34