7th Annual Pan European Small & Mid Cap Conference - Software AG

Characteristics of the Businesses
Enterprise Transaction Systems (ETS)
Business
• Database (Adabas) and programming language
(Natural)
• Add-on products (enhance usage)
Market environment – Mainframe/legacy market
• Supplier power: market highly concentrated
• Buyer power: significant switching costs
• High barriers to entry: proprietary know-how
• Threat of substitutes: no new market entrants
• Degree of rivalry: oligopolistic supplier structure
Position of Software AG
• No 2 in mainframe market, after IBM
Core Competence / Competitive Advantage
• Platform neutral, high performance, low TCO
• High customer loyalty
Goal
• Use leading position for revenue growth with
add-on products and legacy modernization.
Software AG | 22 March 2007 | Page 7
Crossvision (SOA Integration)
Business
• Reuse and web-enable existing IT assets
• Integrate heterogeneous IT- assets into flexible,
architectures
Market environment – SOA market
• Two segments: platform and suite offerings
• Strong competition within segments
Position of Software AG
• No 1 in SOA product strategy, Forrester
• Top Five in Integration-Centric PPM
• Partner of platform vendors (SAP, Fujitsu)
Core Competence / Uniqueness of offering
• Only suite vendor with ability for legacy integration
• Suite offers the complete range of SOA products and
full flexibility for customer requirements (no lock-in)
• Leading SOA Governance product
Goal
• Reach leading position through fast revenue growth
with new products.