Sample Business Plan

Blue Dwarf - Business Plan

Privileged and confidential 1 Inprise/Borland

Business PlanBlue Dwarf

ObjectiveBlue Dwarf is seeking money or equity stakes to fund products focused on the ASP andwireless Internet market. This document explains product development currently inprogress, and is a request for formal funding to proceed with a business unit that willencourage development of these products, and provide the necessary infrastructure toensure a reasonable probability of success.





Executive SummaryThere are two major trends in the Internet business. First, the Internet becomes wireless.Advances in wireless communications and standardization or wireless data services providewidely available wireless access to the Internet using WAP enabled cellphones, PDAs, anda new generation of Internet appliances. Application services providers (ASPs) take overthe hosting of Internet sites, e-commerce applications, and enterprise software.Blue Dwarf sees an enormous synergy between the two trends as ASP hosted applicationsand services will be accessed to a large extent from wireless Internet appliances. CurrentlyBlue Dwarf is working on base technology components, which are configured in twoproduct lines. AnytimeFromAnywhere.com is a next generation Internet portal, whichallows consumers to configure their Internet and services access from any devices.E2B@YourCompany is Blue Dwarf's offering for the enterprise market. It providestraditional and wireless Internet access to services needed by the mobile employee such asemail, directory, calendar, ERP and CRM systems, and travel related services. Futureplans include the combining of data and voice services in an ASP solution with appropriatepartners.





Table of ContentsO b j e c t i v e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5M a r k e t a n d O p p o r t u n i t y A n a l y s i s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Application Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7ASP - A Basic Definition....................................................................................................7The Market.......................................................................................................................7

Benefits to Corporate Customers.......................................................................................9W i r e l e s s I n t e r n e t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

The Technology.................................................................................................................9WAP and WML.............................................................................................................9

The Market.....................................................................................................................10C h a l l e n g e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Internet Devices...............................................................................................................10Single Point of Access......................................................................................................10Integration......................................................................................................................11

Blue Dwarf Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

User Profile Server...........................................................................................................11Accessors.......................................................................................................................11Back-end Integration.........................................................................................................12Security.........................................................................................................................12Technology.....................................................................................................................12

Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12AnytimeFromAnywhere.com.............................................................................................12

What is AnytimeFromAnywhere.com?.............................................................................12Supported Access.........................................................................................................13Currently Provided Services............................................................................................13

E2B@YourCompany........................................................................................................14What is E2B@YourCompany from Inprise........................................................................14Supported Access.........................................................................................................14Currently Provided Services............................................................................................14ERP and CRM services.................................................................................................15Travel services.............................................................................................................15

Future Product Directions..................................................................................................16Integrated Voice and Data Extension.................................................................................16Customer Self Care Extension........................................................................................17

Compet i t ion and Potent ia l Partner Analys is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Players in the ASP/WAP Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18W i r e l e s s C a r r i e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Appl icat ion , ERP and CRM Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19ASP - Key P layers in US Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

R e v e n u e O p p o r t u n i t y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Pricing Models for E2B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Direct Sales Model...........................................................................................................20Carrier Packages..............................................................................................................21ASP Packages.................................................................................................................21Carrier and ASP Packages..................................................................................................21

B u d g e t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21T e a m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21



M a n a g e m e n t T e a m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Jay Leite........................................................................................................................21Dr. Andreas Vogel............................................................................................................21

D e v e l o p m e n t T e a m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22R e l a t e d I n p r i s e P r e s s R e l e a s e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Inprise CEO Outlines New Strategy in Support of Application ServiceProviders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Inprise/Borland Announces Venture Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23



Market and Opportunity AnalysisThere are two emerging business and technology directions Blue Dwarf is focused on:Application Service Providers (ASP) and the wireless Internet. This section gives anoverview of the ASP business model and the wireless Internet technology.

Application Service ProvidersCurrently businesses are struggling to “get to the net”, without any cohesive plans as towhat that actually means, or what segments of their business need to be web activated.Generally, the marketplace has focused on the relationship between businesses and theircustomers until recently. Hosted web-delivered services will be the next generation ofbusiness solutions, especially for the majority of small businesses. Packaged applications,such as Oracle Financials and SAP, have become increasingly costly and require enormousinvestment in infrastructure, without offering the flexibility which modern businesses needto compete effectively. With technology advancing at “Internet speed”, companies areaverse to investing valuable resources in infrastructure which will be obsolete before theyhave fully deployed their packaged applications. Web-hosted applications offer rapiddeployment at a greatly reduced cost, and the ability to implement a wider variety ofsolutions that they may not have otherwise been able to afford. In short, utilization of theweb offers flexibility and quality for fewer resources than the same applications offered bypackaged vendors. Moreover, the competitive landscape presents significant partneringopportunities to help mitigate the market and business risks and to help ensure successthrough strategic alliances that will help develop the market.

ASP - A Basic DefinitionAn ASP is an application oriented service provider that:

• Operates a centralized data center.• Employs a one-to-many model.• Access is provided across a wide area network such as the Internet, VPN or private

line.• In most cases offers packaged applications.• Is responsible for delivering on the contract (and in most cases sells it).

The MarketThe market is heating up for ASPs, which host business applications for customers at datacenters. Outsourcing advocates argue that hosting is a sensible route for small or midsizebusinesses that want to use business enterprise-class software but cannot afford to install ormanage it. Generally speaking, ASPs enable quicker implementation, reduce the need fortrained IT personnel, require less up-front costs, provide quicker return on investment andprovide an infrastructure that can more easily grow with a company. ASPs are also a viablesolution for large corporations with multiple sites that wish to pool resources.



Source: Yankee Group 1999The ASP market is expected to grow to $2 billion by 2003, according to International DataCorporation. Forrester Research is more optimistic about the growth of this market, notingthat the growing shortage of skilled workers is bound to encourage companies to seekoutside help in maintaining their packaged applications: Forrester predicts the ASP marketwill hit $6.4 billion by 2001.

Forecast high end application service provider (ASP)spending,North America.

$-mil1997 4.41998 19.51999 135.92000 207.12001 422.5AGR 213.0%

Source: IDC 1999All of this activity requires a very high level of application services integration to be trulyeffective. In its August 1999 report on the ASP market, The Yankee Group notes thatASPs are “moving toward offering a suite of best-of-breed solutions—back office, frontoffice and e-commerce that are pre-integrated on their hosting platform.” Currently,however, it sees relatively few integration/middleware companies addressing this emergingmarket.ASP-functionality is fast becoming an essential value-added service for today’s webhosting vendors. Corporate America spends $25 billion annually to maintain their existingapplications. Corporate America now has 40 million telecommuters; applications have tobe implemented over the Extranet. The application hosting market grows at 111% annuallyand will be at $2.4 billion in the year 2001.

Forecast high end application services provider (ASP)spendingBy region, worldwide. AGR for 1999-2003.

$-milIn 2001 In 2003 AGR

NorthAmerica

423 1,415 80%

WesternEurope

110 390 156%



Forecast high end application services provider (ASP)spendingBy region, worldwide. AGR for 1999-2003.EuropeJapan 20 110 157%Asia-Pacific 11 34 108%Rest OfWorld

12 50 161%

Total 576 1,999 91% Source: IDC 1999

Benefits to Corporate CustomersThe benefits of an Application hosting service to corporate customers are:

• Reduced deployment time and risk.• Reduced day-to-day operational responsibility, allowing in-house IT departments to

focus on creating strategic value.• Lower annual maintenance costs.• No capital investment in servers, facilities, and other infrastructures.• Access to emerging technologies and improved responsiveness to changes in the

market.• 24 x 7 operations, high availability, rapid scalability, and robust security.

Wireless Internet

The TechnologyWireless is a term, which covers related but distinct aspect: connecting laptops via awireless network to an ISP or corporate intranet, and using a micro browser in handhelddevices such as cell phones and PDAs to access Internet content.Advances in wireless technology, specifically in digital services, make cellular networksthe backbone of the wireless Internet. Different types of digital cellular networks usedifferent technology standards. GSM is used throughout Europe and most of Asia, CDPDand CDMA are dominant throughout the North America. SMS is limited capacity dataservices in GSM networks, which has been successfully used in Europe and Asia.

WAP and WMLOver the last few years various trials have been using different technologies to providewireless Internet features using a variety of communication protocols and mark-uplanguages. These efforts have been channeled through an industry consortium, the WAP(Wireless Application Protocol) Forum. The forum has standardized WAP. WAP has twomain aspects:• A layered communication protocol stack (similar to the HTTP protocol stack)• A mark-up language called Wireless Mark-up Language WML (similar to HTML)

geared towards hand-held, small screen devices.The distinct feature of the WAP protocol is that it masks differences in the wireless networkand transport protocols. That allows content and services developers to implement against awell-defined application level protocol API.WML is defined in XML. Its definition takes the specifics of the (current) wirelessnetworks and the handheld devices into account. The currently available network speed of14.4 Kbps is expected to grow quickly. Similarly processor speed, memory and disk



capacities of the devices are increasing. However, a small screen will remain a keycharacteristic of hand-held devices.WAP is widely accepted in the industry, including device manufactures (Nokia, Ericsson,Motorola, Qualcomm, 3COM), carriers (AT&T, Sprint, Bell Atlantic, Deutsche Telekom,Mannesmann, Sonora, …), and software and application vendors (Microsoft, IBM,Oracle).

The MarketAnalysts predict an enormous growth and volume in sales non-PC Internet devices.According to IDC 12.2 Million non-PC Internet access devices will be sold in 2000. This isslightly less than the projected number of personal computers that will be sold in 2000. Intotal, early 56 million information appliances will be in use by 2002; by 2004 or so, non-PC information devices will dominate the market for Net-connected devices. According to Jupiter Communications more than 10 million mobile phones will becapable of accessing Internet data by 2002. By the end of 2000 all cell phones provided bySprint PCS will be WAP enabled. In 1998 Americans spent $30 billion on wireless services and almost none on wirelessdata services. Forrester Research predicts that in 2005 Americans will spend nearly 60billion on wireless services, $8.4 billion of it on data. According to the Gartner Group, the mobile phone market will reach 1 Billion users by2003. Overall revenue from wireless devices will reach 600 million in 1999 and Yankee Groupforecasts a rise to more than $4 Billion in 2003.

Challenges

Internet DevicesThe personal computer is becoming only one of many devices to access information andservices via the Internet. Other devices include cell phones, personal digital assistants andpublic Internet terminals. Furthermore there are a growing number of applications, whichexchange data via the wired and the wireless Internet. There are business-to-businessapplications which are connected a variety of enterprise information systems via theInternet. There also are embedded computing system, for example a car's board computerexchanging data with and accessing functionality from a variety of services via the Internet.That creates the challenge for ASPs to provide all different types of access in secure,scalable and reliable manner.

Single Point of AccessToday, services of interest are typically book-marked in the web browser of your PC. Thelocal storage of bookmarks doesn't scale to multiple devices. Furthermore, there aresubscription-based services, which require user authentication, which are not well handledby bookmarks. The identity of a subscriber is typically defined by a pair of user identifierand a password. It becomes quite hard to remember all the different names and passwordswith an increasing number of services you use. Using subscription based services fromdevices which have limited input capabilities, for example cell phones and PDAs, isawkward.That creates the challenge for ASPs to provide a single point of access for consumer andbusiness users covering all types of access and going beyond the boundaries of a specificservice provider.



IntegrationCompanies use different applications and services to fully cover their needs to conduct theirbusiness. The services and applications become really useful when they can be used in anintegrated manner.That creates the challenge to ASPs to integrate heterogeneous types of applications andsystems to bridge between all the different systems in a high-performing, secure, andreliable manner.

Blue Dwarf SolutionBlue Dwarf has chosen a standards- and component-based approach to address the threechallenges stated in the previous section. These components can be configures to a varietyof products focused on different market segments.

ComponentsBlue Dwarf's ASP Integration Server provides a solution to the three challenges stated inthe previous section. It provides the following components:• Accessors

mask the different communication protocols and presentation formats• User Profile Server

provides a single point of access.• Integration Layer

allows integrating different services and applications.

User Profile ServerThe core of the ASP Integration Server is the User Profile Server. The User Profile Serverprovides a single point of access. You login once to access all you favorite services.You administer your profile through a standard HTML interface. The profile contains theusual personal information such as name, addresses, and contacts. Furthermore userspecific attributes can be stored as well as various payment options. Finally it allows you toorganize your bookmarks into a directory structure. While the well-known browserbookmarks just mark an URL, the profile server introduces the notion of smart bookmarks.A smart bookmark allows you to specify properties associated with the service, whichallows you to customize the service.Furthermore, the bookmark can be associated with an access component. An accesscomponents enables access to a service through a particular protocol and presentationmechanism. For example, you could access the same service, let's say email, through atraditional web browser, a cell phone using WAP and WML or through a PDA.The administration of your profile is provided through an easy-to-use HTML basedinterface. The access to the user profile is enabled through a variety of accessor fordifferent protocols and presentations.

AccessorsThe ASP Integration Server allows you to access services from a variety of devices andcommunication protocols.Currently we support any device support an HTML browser, including PCs, Internetphone and Internet terminals. Furthermore we support WAP for wireless devices such ascell phones and PDAs.



Back-end IntegrationAll backend services are accessed through a standards-based, open integration layer. Wewrap custom APIs in EJB or CORBA proxies. These standard interfaces allow differentservices to share data and to be integrated.

SecurityThe ASP Integration Server components have been designed and engineered with aparticular focus on security. Crucial data is stored encrypted in the user profile database.Depending on the configuration at an ASP or in an enterprise firewalls are secured crossedwith IIOP and HTTP using open standards' based security solutions. Traffic on the publicInternet is encrypted using proven SSL technology. Servers are authenticated using level 3certificates. Access control is enforced using the standard CORBA and EJB securitymodels.

TechnologyThe above described components are implemented using standard-based Java 2 EnterpriseEdition technology, specifically Java servlets (for accessors), EJB and CORBA forservices and integration layers. We have chosen the Inprise Application Server for itsproven scalability, performance and robustness.

ProductsBased on the above described components, we are currently working on two product lines.One is focused on the consumer market, the other on the business-to-employee market,which explained in detailed in the next two sections. Finally we outline future productdirection.

AnytimeFromAnywhere.comAccess to your services from anywhere at any time is the concept of Blue Dwarf'sconsumer oriented site.Scenario 1: Browse the WAP directory for new cool sites and bookmark them in yourpersonal service directory.Scenario 2: Log into the Borland developer community without having to remember youruser name and password to check on the latest news on JBuilder, then check Sun's Javadevelopers site, again without having to remember user name and password.Scenario 3: Receive a reminder for your wedding anniversary on your WAP enabledcellphone. You had put the event and a set of reminders into your event managementsystem you had forgotten last year's anniversary.

What is AnytimeFromAnywhere.com?AnytimeFromAnywhere.com is a new type of Internet portal. It is truly open (not driven bypaying content providers selected by the traditional as AOL, Yahoo, etc) and allowscustomers to customize their Internet access. Furthermore, it equally supports thetraditional and wireless Internet.



Supported AccessAll these services are accessible via a variety of Internet appliances

• WAP-enabled cell phones• Connected PDAs• Any Internet terminal with a web browser

Currently Provided Services

• Bookmarks• Boomarks for subscription based sites (remember user name and password)• E-mail access to public POP3 and IMAP email accounts



• Directory access to public LDAP directories• Event and calendar management• WAP service directory

E2B@YourCompanyAccess to corporate services from anywhere at any time is the concept of Blue Dwarf'senterprise oriented solution.E2B@YourCompany offers Employee-to-Business solutions for your company. Mobileemployees can access your corporate data and services from the traditional and wirelessInternet from a variety of Inter appliances such as WAP-enabled cell phones, PDAs andInternet terminals.Scenario 1: Flying from one job to the next, your company’s consultant hasn’t checkedemail all day. Using E2B@YourCompany, your consultant can conveniently use hiswireless phone to read e-mail, pull up your company’s LDAP directory and return the call -- all from the baggage claim or taxicab.Scenario 2: Your field support engineer is returning home and has a few minutes to sparebefore his flight takes off. Using E2B@YourCompany, he logs into the airport Internetkiosk to close out the support case on his company’s CRM system and the team can restassured that the problem is resolved. And while he’s there, he can then check his personalemail with no need to login again!Scenario 3: Your salesperson is at a client lunch and her client requests the same $500Korder that was delivered last quarter if you can get that outstanding technical support issueresolved and offer the same discount. She needs the details FAST. UsingE2B@YourCompany, your salesperson can jump on her palm pilot and access yourcompany’s ERP system to check the status of the support case as well as details of pastorders—without waiting for her assistant to return from lunch and without playing phonetag.

What is E2B@YourCompany from Blue Dwarf ?Your field employees will no longer have to “get back to the customer” later or receiveimportant corporate information after the fact. They can access corporate services such asemail, directory, calendar, corporate CRM and ERP systems as well as other servicesessential to the road warrior such as travel booking, flight status, and weather information.

Supported AccessAll these services are accessible via a variety of Internet appliances

• WAP-enabled cell phones• Connected PDAs• Any Internet terminal with a web browser

Currently Provided ServicesThe Employee2Business (e2b) Solution provides access to the following enterpriseservices. There are three groups, standard services, ERP services, and travel services.Standard Services These services work out of the box as they are based on open Internetstandards maintained by the IETF.

• E-mail access to corporate intranet and public POP3 and IMAP email accounts• Directory access to corporate intranet and public LDAP directories• Event and calendar management



ERP and CRM servicesThese services are provided for selected features of standard configurations for thefollowing systems

• SAP• Clarify• Siebel (planned)

Customizations can be provided through Inprise professional services.

Travel servicesThese services are provided through a third party

• Accessing and managing itineraries• Checking flight status and schedules• Weather information



Future Product DirectionsFuture products will be based on extensions of the components described above. Currentlywe foresee two directions, which are focused on the telecommunications market andpartnerships with Telcordia and VocalData.

Integrated Voice and Data ExtensionFor the 30 years voice and data have been carried over different networks. Now we are atthe verge of the convergence of the two types of networks. Advances in technology allowto fully digitize voice signals and to carry them of the same IP networks, which carry datatraffic today.



Telcordia and VocalData are leaders in IP telephony. Telcordia's current IP telephonyoffering is focused on long distance telephony and the bridging into the existing PSTN.VocalData provides an IP based PBX solution addressing voice services within a company.These two products allow to completely outsource telephony services from an enterprise toan ASP. In conjunction with the Blue Dwarf products a complete outsourcing of voice anddata services can be provided to enterprises. That is the ultimate ASP solution.

Customer Self Care ExtensionAnother area, which is equally attractive to user and service providers, is the customer selfcare through a variety of Internet devices. Above we described for example how a usercould customize access to an email system using service properties handled by the userprofile server. We are currently exploring how to apply the same technology andmethodology to customer self care systems in general and telephony systems in particular.Features we initially identified include:

• Controlling access to and customizing the use of voice mail and announcementservers.

• Managing conditional call forwarding.• Setting up conference calls.



Competition and Potential PartnerAnalysisThis section lists types of companies and individual enterprises, which are active in thesame space. So far there are only very few players, who are active in the combinedASP/WAP space. These are investigated in the first section. Then we look at playerscoming from the wireless space

Players in the ASP/WAP Space• IOBox

http://www.iobox.comFinnish ASP providing HTML and WML access to consumer-oriented services. Focuson the European (Scandinavia, UK, Germany) market.

• 724http://www.724.com724, a Canadian company, builds WAP/Web access solutions for the financial sector.Customers include Bank of Montreal, Citi Bank, Bank of America. Focus on the NorthAmerica market, now expanding to Europe.

• Dr. Materna GmbHhttp://www.materna.comMaterna has a background in CRM solutions. More recently Materna has developed awireless portal for the consumer market. We expect that Materna will be providing forthe enterprise by combining its CRM and WAP expertise in the mid-term. Focus on theGerman/European market.

• 1&1http://www.online.de1&1 is active in a variety of Internet related businesses, including Web hosting, Internetmarketing and content provision. 1&1 recently announced a deal with T-Mobil,Deutsche Telekom's mobile subsidiary, to provide WAP enabled solutions for theconsumer and business market. Focus on the German/European market.

• Wireless Knowledgehttp://www.wirelessknowledge.comWireless Knowledge is a Microsoft and Qualcomm company. Its currently providesservice is Revolv which provides access from wireless devices to Microsoft Exchangeand Lotus Notes. Focus on the US market, data center in San Diego.

Wireless CarriersCarriers have to provide content to make their data services attractive to customers. Hencecarriers seeking for partnerships with a wide range of content providers. So far the mainfocus of the carriers is towards the consumer market.We have listed here Sprint PCS/WorldCom and Deutsche Telekom T-Mobil as the leadingrepresentative for the US and European markets. Other carriers such as AT&T and BellAtlantic in the US follow the same strategy.• Sprint PCS/WorldCom

http://www.sprint.com/Sprint was the first major US carrier to provide WAP service in its PCS network.Sprint provides WAP content through a number of content providers, including Yahoo,GetThere.com, Bloomberg, Amazon.com, etc



• Deutsche Telekom T-Mobilhttp://www.t-d1.de/leistungen/mobilmm/wapDeutsche Telekom T-Mobil was among the first European carriers to provide WAPservice. T-Mobil provides WAP content through a number of content providers,including DeTeMedien, HRS (travel), InfoSeek, ZDF/Heute (news), Lufthansa, etc.Recently T-Mobil announced a partnership with 1&1, see above.

Application, ERP and CRM Vendors• Microsoft

http://www.microsoft.com/Microsoft has announces its Outlook Software (e-mail, directory, and calendar).Microsoft is also an ISP/ASP with its Hotmail and MSN offerings. Furthermore,Microsoft is an operating system (Windows CE) provider to handheld device vendors.

• IBMhttp://www.ibm.com/IBM has announced to WAP enable the Lotus Notes. IBM is also active in the wirelessarena with its professional service organization.

• Oraclehttp://www.oracle.com/Oracle provides WAP/WML with its database and application service offering.

ASP - Key Players in US Market• Accent Software

http://languageware.net/Provides software and services to helptranslate software and media in anylanguage over the Interne

• Digex, Inchttp://www.digex.com/Web-outsouring solutions

• InterNoded Inchttp://www.internoded.com/Back-end services for ASPs

• Interlianthttp://www.interliant.com/Offers range of server, site andcommerce hosting services

• Breakawayhttp://www.breakaway.com/Markets e-commerce and front office tomid-sized enterprises

• DigitalWorkhttp://www.digitalwork.com/index.aspPortal ASP, offers various online apps

• Intrawarehttp://www.intraware.com/intraware/index.htmlPurchasing/upgrading of installed

• McAfeehttp://www.mcafee.com/Provides ability to upgrade, manage PCson Web

• US West !nterprise Networkinghttp://www.uswest.com/Offers Involv, Sitematics; addingenterprise and videoconferencing apps

• Corio, Inchttp://www.corio.com/Offers Peoplesoft

• eGain Comunicationshttp://www.egain.com/CRM developer for e-commerce,provides Hosted Network services

• Porterahttp://www.portera.com/Operates vertical sector portalsdelivering business services direct fromthe Web site

• Usinternetworkinghttp://www.usi.net Internet Managed Application ProvideriMAP solutions to enterprise customersworldwide



enterprise software• TIBCO Software Inc

http://www.tibco.com/Provides online content integrationservices

• BroadVisionhttp://www.braodvision.com/Internet software/products for large netbusiness

• E-Cruiter.com Inchttp://www.ecruiter.com/Web-based recruiting and staffing forNT/Java

• Critical Pathhttp://www.cp.net/Customizable e-mail messaging services

• Extensity Inchttp://www.extensity.com/Expense reporting, business travel,billable time capture and procurement

• SalesLogixhttp://www.saleslogix.com/Front office automation software (builtusing Delphi).

• USWeb/CKShttp://www.uswebcks.com/Provides managed services on a monthlysubscription fee.

Revenue OpportunityInitially the primary focus is gaining market share with Blue Dwarf's consumer and e2bsolutions. The mid-term revenue model for the consumer market is based on advertising.The revenue model for the e2b business is based on leasing fees. Below we outline variouspricing models. They are all based on an application-leasing model. Variances come frompotential package deals with ASPs and carriers.

Pricing Models for E2BWe foresee the following pricing models. They are all based on a lease model providing anongoing revenue stream:• Direct sales model• Carriers package• ASP packageThey are all based on seats.Additional one-time charges and support costs come from providing complete solution(incl. hardware) and customization of accessors.

Direct Sales ModelThe e2b solution is installed and configured in an enterprise's data center. Employees useWAP enabled phones from the carrier of their choice and pay the carrier separately.• one installation fee ($5000 - $50000)• fee per user ($5-10/per seat and month)Example:Customer with 500 participating field workers: $10,000 one-time installation fee $ 45,000 = $ 7.50 * 500 * 12 (monthly fees) __________________________________ $55,000 total



Carrier PackagesThe e2b solution is sold in conjunction with a carrier's plan phones. The system is installedand configured in an enterprise's data center. Employees use WAP enabled phonesprovided by the carrier. Pricing as above.

ASP PackagesThe e2b solution is sold in conjunction with an ASP offering. The is installed andconfigured at the ASP. Employees use WAP enabled phones provided by the carrier oftheir choice. Pricing as above, there won't be an installation charge.

Carrier and ASP PackagesThe e2b solution is sold in conjunction with an ASP and a carrier offering. The solution isinstalled and configured at the ASP. Employees use WAP enabled phones provided by thecarrier. Pricing as above, there won't be an installation charge.

Budgetinclude budget information here

TeamThe Blue Dwarf staff consists of a very experienced team from Inprise. The initial team isstructured without any overhead. The focus of the team is on Internet and distributedsystems development skills.

Management Team

Jay LeiteMr. Leite is responsible for all administrative, financial and business development aspectsof Blue Dwarf.He currently is Senior Vice President Emerging Technologies at Inprise Corporation. He'sfocused on developing and maintaining Inprise's strategic business relationships, a criticalfunction as Inprise continues to expand its enterprise offerings. Mr. Leite was Inprise'sacting CFO and prior to that Vice President Business Development.Before joining Inprise, Mr. Leite was a partner in a private accounting and consultingpractice since 1978. He specialized in contract negotiation, corporate taxation andmanagement.Prior to private practice, Mr. Leite worked for Deloitte & Touche and KPMG International.Mr. Leite attended the University of San Francisco and San Jose State, graduating with adegree in accounting. He is a member of the American Institute of Certified PublicAccountants and the California Society of Certified Public Accountants.

Dr. Andreas VogelDr. Andreas Vogel is responsible for all technical aspects of Blue Dwarf.He's currently Chief Scientist with Inprise Corporation, which he joined in January 1997.In this position, he works with customers, mostly Fortune 500 companies, on CORBA andEJB solutions for their distributed computing needs, as well as, on the next generation ofInprise products.Dr. Vogel has a very strong background in distributed systems. He's one of the leadingexperts in the area of CORBA, Java and Enterprise JavaBeans (see also publications). He



has hands-on experience with related technologies including Java Servlets, HTML, HTTP,WAP, WML, XML, JDBC, JTS.Over the last 3+ years Dr. Vogel has been working with over 35 Inprise customers. Hisinvolvement was mainly about the architecture and design of systems forInternet/Intranet/Extranet, partially transaction oriented and partially in thetelecommunications space. A number of projects also involved prototyping and theimplementation of key modules. The list of customers include AT&T, Telcordia (formerlyBellcore), Deutsche Telekom, Bank of America, Charles Schwab, The Associates, AAA,Credit Suisse First Boston, Bear Stearns, Postbank, United Healthcare, HP, FederalExpress, DHL, Florida Power and Light, Wallace Computer, Reynolds and Reynolds.Some examples of his consulting work include:

• Architecture and design for AAA's Internet travel booking system• Architecture, design and bootstrapping the implementation of AT&T's

Internet/Intranet site for setting up conference calls• Architecture, design and bootstrapping the implementation of Wallace Computers'

B2B solution for ordering paper forms and office equipment• Design and implementing a security solution (SSL and access control) for a B2B

application for Credit Suisse First Boston• Architecture of The Associates' Intranet (thousand of branches connecting to the

HQ)• Architecture review and re-design of Germany's Postbank telephone banking

application• Architecture and design of Telcordia's IP (over cable networks) telephony solution

- currently deployed at Videotron (province of Quebec's cable network)• Architecture, design and bootstrapping the implementation of Reynolds&Reynolds'

B2C/B2B application for ordering and tracking of ordersDr. Vogel has co-authored "Java Programming with CORBA", which is now in its 2ndedition, "C++ Programming with CORBA" and "Programming with Enterprise JavaBeans,OTS and JTS". Prior to his employment at Inprise he worked as a Principal ResearchScientist at Australia's Distributed System Technology Center. Before that He was aresearcher at University of Montreal. He holds a PhD and MSc in Computer Science fromHumboldt-University at Berlin, Germany.

Development TeamThe Blue Dwarf development team is recruited from within Inprise. The majority of thedevelopers are coming from the Inprise consulting group where they worked as Principaland Senior consultants. They have been contributing to many of the success stories ofusers of Inprise CORBA and application server technology over the past three years. Theteam is complimented by developers from the Interbase team, which bring in the highestlevel of database expertise.

Related Inprise Press Releases

Inprise CEO Outlines New Strategy in Support ofApplication Service ProvidersNew AppServices Unveiled at AEA ConferenceSAN DIEGO -- Nov. 12, 1999 -- At this week’s American Electronics Association (AEA)conference, Inprise Corporation’s (Nasdaq: INPR) interim President and Chief Executive



Officer Dale Fuller unveiled the company’s new strategy in support of application serviceproviders (ASP). In addition, Fuller announced plans to create the new InpriseAppServices, a new service to integrate software and services from many applicationservice providers into a single, easy-to-use suite.AppServices will allow customers to access different business application sources througha web-based portal that includes a unified suite of communication/collaboration/productivitytools, such as calendaring, messaging and discussion forums. Inprise and its partners planto build and host AppServices. AppServices will enable end-users to access theirapplications and desktop via any networked device, operating system or protocol, using astandard browser interface."We expect the ASP market to grow significantly over the next five years and devised ournew AppServices to provide a single point of access to various ASPs," said Fuller. "Bygiving customers a specialized software layer that integrates key components on thenetwork, we give ASPs the glue and toolset that assist customers in significantly loweringtotal cost of ownership in software and hardware expenditures, reducing deployment timeand giving them faster access to emerging technologies."Inprise’s strategy for ASPs consists of three layers. The first, a "user layer," providesusers with a single point of entry and universal registration system from which to accessapplications from various ASPs being used within a company. The second, a "transportlayer," allows a user to access ASP-hosted applications on different types of devices,removing the complexity of the ASP having to support many different devices. Finally, a"messaging layer" allows different applications from various ASPs to communicate withone another.According to International Data Corporation (IDC), a leading market research analyst firm,worldwide spending for ASPs will increase from $150 million in 1999 to over $2 billionby 2003.

Inprise/Borland Announces Venture FundCompany to Make Investments in Wireless and Linux TechnologiesNEW YORK -- January 13, 2000 -- Inprise/Borland’s (Nasdaq: INPR) interim presidentand chief executive officer Dale Fuller today announced plans to invest $60 million in start-up businesses focused on wireless technologies, Internet Access Infrastructure, and Linuxapplications and technologies. The announcement was made today at the Needham &Company’s 2nd Annual Growth Conference in New York City."Technology companies can no longer expect to build it all," said Fuller. "Start-ups areable to move more aggressively and respond to market opportunities more quickly thanestablished, larger companies.This new model will allow us to leverage our strong technological and intellectual propertystrengths, while ultimately delivering more complete solutions to the marketplace. Webelieve this partnering approach, which preserves the independent entrepreneurial spirit ofthe start-up, will yield far better results than acquiring the companies outright.""There are numerous quality investments we can make right away which are central to ourstrategy, which is to help companies conduct business over the Internet," said Fuller. "Weexpect to invest primarily in start-ups whose missions reinforce our primary initiatives -- toprovide services to ASPs, business to business E-commerce, and Linux markets."Equity stakes will usually be limited to 20% or less, and Inprise/Borland will act as a"startup catalyst" to assist the company in its formative stages. "Our role will be to assistthem in getting to market as quickly as possible," said Fuller. "In addition to capital, wecan provide access to our award-winning development tools andInternet Infrastructure Access products, our patent portfolio and technologies, and ourdistribution network and data center infrastructure. Our strategy is to help establish themand then stay out of their way."



The investments will be reviewed by a committee consisting of Inprise/Borland’s DaleFuller and the company’s CFO, Fred Ball, and two outside directors, Bill Hooper andRobert Coates.About Inprise CorporationInprise Corporation is a leading provider of Internet-enabling software and services thatreduce the complexity of application development for corporations and individualprogrammers. Inprise delivers integrated, scalable and secure solutions distinguished fortheir ease of use, performance and productivity. Committed to open platforms, Inprisecontinues its tradition of service and support for millions of software developers around theworld through its online developer community and E-commerce site--http://community.borland.com--providing a range of technical information, value-addedservices and third-party products. Founded in 1983, Inprise is headquartered in ScottsValley, California, with operations worldwide. To learn more, visit us athttp://www.borland.com or call (800) 632-2864.Inprise product names are trademarks or registered trademarks of Inprise Corporation.Other product names mentioned herein may be trademarks of the party using such names.Note: Forward-looking statements in this release, including but not limited to, thoseconcerning Inprise's future financial performance, future market developments, Inprise’sposition in such markets, product availability dates, and the potential features of or benefitsto be derived from the Company's products, involve a number of uncertainties and risks,and actual events or results may differ materially. Factors that could cause actual events orresults to differ materially include, among others, the following: difficulties in integratingthe operations and technology of Visigenic Software or other companies or technologieswhich the Company may acquire, possible disruptive effects of organizational or personnelchanges, shifts in customer demand, market acceptance of the Company's new or enhancedproducts, delays in scheduled product availability dates, actions or announcements bycompetitors, software errors, general business conditions and market development andgrowth rates in the client/server and Internet software markets, and other factors describedin the Company's S.E.C. reports on forms 10-K, 10-Q, 8-K.Contact:Brett Smith, Inprise Corporation, (831) 431-1341, [email protected] DeCoster, TSI Communications (650) 635-0200 ext. 207, [email protected]

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